MTS Mobile TeleSystems

Financial performance

Main Article: MTS Financial Indicators

2023: Revenue growth by 13.6% to RUB 606 billion

In 2023, MTS raised 606 billion rubles, which is 13.5% more than a year earlier. The net profit of the Russian telecom operator increased even more - by 64.2%, to 53.3 billion rubles. The company published such data on March 5, 2024.

It follows from the MTS reporting that the company earned 282.5 billion rubles on communication services to individuals in 2023 against 265.9 billion rubles a year earlier (an increase of 6.2%). Sales of phones in the operator's retail grew by 17.1% and reached 41.9 billion rubles.

In the segment of communication services for corporate and state clients, MTS revenue in 2023 amounted to 80.8 billion rubles, which is 13.1% more than a year earlier. Sales of phones to such customers increased by 35.6%, to 10.6 billion rubles. The report also indicates MTS revenues from sales of advertising technologies and cloud services in the B2B and B2G segment - 37.2 billion rubles (+ 47.9% by 2022) and 13.5 billion rubles (+ 22.6%) at the end of 2023.

As noted in the reporting of the telecom operator, the advertising business in 2023 accelerated its growth rate by expanding the product portfolio, increasing advertising tools and increasing the customer base. The growth in sales of mobile phones in the company was associated with a low base in 2022, as well as with marketing programs.

By the end of 2023, MTS's mobile subscriber base in Russia amounted to 81.1 million users, which is 1.4% more than a year earlier. The report pointed to a 6.7% drop in voice traffic and an 11.8% increase in data traffic. The number of users of the operator's ecosystem in 2023 increased by 11.9%, to 15.1 million people, and revenue from them amounted to 156 billion rubles. The number of pay TV subscribers from MTS in 2023 increased by 18.9% and reached 13.2 million.

Subscriber base

Main article: MTS subscriber base

In 2017, the number of MTS subscribers exceeds 110 million

MTS ecosystem

Communication networks

Development of 5G networks

Main article: 5G in MTS

Information Technology in Business

Main article: Information technologies in MTS

Network upgrade

The main articles are:

• MTS Projects for LTE Network Development
• MTS Telecom Infrastructure Development Projects
• Solar panels in MTS

Services

History

2024

Fine from the Federal Tax Service for ₽3 billion

In mid-October 2024, the Federal Antimonopoly Service (FAS) of Russia explained the reasons for imposing a fine of ₽3 billion on MTS. The decision is related to an unreasonable increase in tariffs for communication services in April-May 2024.

According to RIA Novosti, the head of the Federal Antimonopoly Service Maxim Shaskolsky explained that an average increase in MTS tariffs by 8% was recognized as economically unreasonable. According to the head of the department, the growth of the operator's expenses is covered by revenue without raising tariffs, and the funds received are withdrawn to dividends.

FAS fined MTS 3 billion rubles, explaining the decision by the operator's high profit

Shaskolsky stressed that MTS has a fairly high profit, and there is no need to additionally load consumers. That is why the Federal Antimonopoly Service decided to recover this amount to the budget, which, according to the department, corresponds to the illegally received income from the increase in tariffs.

The increase in tariffs affected more than 30 million MTS subscribers. In addition to the fine, the FAS obliged the operator to reduce tariffs for these subscribers. The agency noted that such a measure of withdrawing unreasonably received income and transferring funds to the budget is used for the first time and is aimed at preventing such unfair practices among telecom operators.

MTS, in turn, announced that it was studying the documents received from the Federal Antimonopoly Service and, based on the results of the assessment, would decide on further actions, including a possible challenge to the decision of the department.

This is not the only Federal Antimonopoly Service proceeding with major carriers. At the end of August 2024, the department opened cases against MegaFon, Beeline and MTS due to failure to comply with the warning to stop collecting additional fees from subscribers in Crimea.^[1][2][3][4]

MTS became the sole owner of the Smart Home company

On October 9, 2024, it became known that MTS PJSC acquired a 25.75 percent stake in MTS Smart Home LLC, consolidating 100% of this company as a result. There is no information on the value of the transaction as of the specified date. Read more here

Capital Structure Optimization

MTS PJSC, a digital ecosystem, on July 16, 2024 announced the transfer of quasi-treasury shares of MTS owned by its subsidiary and constituting about 1.1% of the authorized capital of MTS to a closed mutual investment fund (ZPIF). The transaction will optimize the costs associated with owning own shares, as well as improve the effectiveness of their use for managing the company's capital and liquidity.

A subsidiary of MTS - Bastion LLC transfers its 21,500,000 ordinary shares of MTS as payment for shares in the formation of the fund.

The management company ZPIF will have the right to vote on the transferred shares, as well as the right to receive dividends and dispose of them for investment purposes as part of the investment declaration. The principles of management of MTS stakes transferred to ZPIF contain certain restrictions on their alienation and encumbrance.

TAdviser interview with MTS Link Executive Director Pavel Potekhin

The next sanctions and disconnection of Russian users from Western services may affect the segment of solutions for corporate communications, depriving many companies of the opportunity to effectively interact both within and with external partners. Pavel Potekhin, Executive Director of MTS Link, talks about how to choose a Russian solution to replace the usual Zoom, Slack and Microsoft Teams and painlessly migrate to it. Read more here.

DDoS attack, which was carried out from 5 countries with 20 thousand devices

On June 13, 2024, MTS announced the most powerful DDoS attack this year, which was carried out simultaneously from five countries. The attack lasted two hours, but thanks to the well-coordinated work of the MTS RED protection system, hackers failed to hack into the operator's network.

According to MTS, the attack on the broadband Internet access network (broadband Internet broadband access) was carried out from Turkey, Spain, Poland, Ecuador and China. More than 20 thousand devices targeted over 500 telecom operator IP addresses, which could lead to an Internet shutdown for an entire region if the attack were successful. As noted in the company, the monitoring system of the DDoS attack protection service "MTS RED" worked in a matter of minutes, which prevented the threat.

MTS reported the most powerful DDoS attack this year

The attack power was 207 gigabits per second, and at the border of the network it could reach several terabits. Attackers targeted specific network equipment - a router, which, if successful, would disable Internet access for operator users in one of the regions. "This indicates the thoroughness and consistency of the preparation of the attack," MTS added.

Dmitry Monakhov, Technical Head of Anti-DDoS at MTS RED, stressed that recently the organizers of DDoS attacks have begun to carefully approach the choice of goals, using their knowledge in the field of network technologies to increase the effectiveness of attacks. He noted that MTS specialists see signs that the organizers of DDoS attacks are betting on the volume and intensity of attacks.

In the first quarter of 2024, the number of DDoS attacks on Russian companies doubled, mainly organizations from critical industries are hit. Roskomnadzor The report said that in the first quarter of 2024 Russia alone, almost three times as many attacks were repelled than in the entire 2023.^[5]

Consolidation of MTS Entertainment Businesses in MTS Media Holding

On May 16, 2024, MTS, a digital ecosystem, informed TAdviser that MTS Media holding had completed the consolidation of the KION online cinema, the Stroki book service, MTS Music streaming and MTS Live directions (MDTZK LLC) and MTS Label into a single vertical. Read more here.

Rent 10 thousand square meters. m of offices in the center of Moscow for hundreds of millions of rubles a year

MTS rents 10 thousand square meters. m of offices in the Silver City business center, which is located on Serebryanicheskaya embankment in the center of Moscow. The building is owned by investment firm O1 Properties. This became known in early May 2024.

As Vedomosti writes with reference to real estate market participants, the rental rate in Silver City is about 25 thousand rubles per square meter per year, excluding VAT and operating costs, along with them - 38-39.5 thousand rubles. Thus, MTS will annually pay approximately 380-395 million rubles for the new office.

MTS rents 10 thousand square meters. m of offices in the Silver City business center

The decision of MTS to lease space in Silver City, consultants interviewed by the newspaper associate with the desire of the telecommunications operator to transfer most of its divisions to one office. According to the interlocutors of the publication, MTS has long thought about consolidating its areas, which will improve the efficiency of work.

By the beginning of May 2024, MTS has offices in Moscow on the street. Marxist and in Nagatin, the company also occupies premises in business centers on Leningradsky Prospekt and in the area of ​ ​ Art. m. "October field."

It is logical that the company would like to place its divisions more compactly than they are located now. Several years ago, MegaFon did the same, gathering units in the Armory business center on Sadovoye, next to the VimpelCom office, according to the authors of the Telegram channel abloud62, which specializes in news in the telecommunications sector.

Rent 10 thousand square meters. m. In the Silver City business center, experts called the largest office lease transaction in Moscow since the beginning of 2024. In general, the office real estate market in Moscow is active, with sales and leases exceeding 2023 by 10-20%, Vedomosti interlocutors say^[6]

MTS buys 4.2% of its shares for 8 billion rubles from foreign investors

At the end of April 2024, MTS announced the redemption of 4.2% of its shares in the amount of about 8 billion rubles from foreign investors. In total, it is planned to redeem 83,932,026 securities at a price of 95 rubles apiece.

According to MTS, the redemption of shares from non-residents will allow shareholders whose rights were limited to dispose of their shares. According to the established schedule, the deadline for submitting tender bids is 12:00 Moscow time on May 28, 2024. MTS will make payments for the received shares by June 20 of the same year.

MTS announced the redemption of 4.2% of its shares in the amount of about 8 billion rubles from foreign investors

According to the terms of the tender offer, the buyer of the securities will be a subsidiary of MTS - Stream Digital LLC. Shares for redemption will be able to present non-resident shareholders whose securities are accounted for in depot accounts of type "C," and residents who are under the control of foreigners. Investors will be able to get money from the sale in dollars, rubles euros, yuan or dirhams UAE to bank accounts Russia in or abroad.

The repurchase of shares will be financed at the expense of MTS's own funds and will not have an impact on the company's dividend policy and plans to pay dividends, the tender says, excerpts from which are quoted by Vedomosti.

It also follows from the document that the issuer reserves the right to redeem more shares without amending the tender offer, but not more than 2% of the share capital.

MTS noted that the terms of the buyback were agreed with the government commission for monitoring the implementation of foreign investments. Earlier, Ivan Chebeskov, director of the financial policy department of the Ministry of Finance, said that public companies that have redeemed their shares from foreigners receive a demand from the government commission to control the implementation of foreign investments to return part of the securities to the exchange.^[7]

Opening a store with a focus on digital solutions in the shopping center "Oceania"

MTS PJSC, a digital ecosystem, on April 11, 2024 announced the opening of a modified store with a focus on the company's digital solutions. The pilot project was launched in Moscow in the Oceania shopping center.

The area of ​ ​ the store is more than 250 m ², which is almost five times more than the classic format. In the store, customers will be able not only to purchase the latest technological innovations, but also to get acquainted with the digital services of the MTS ecosystem. To do this, special zones are located in the central part of the store, in which visitors will be able to test MTS Premium subscription services, as well as find out information about their main advantages.

Another distinctive feature of this format is its manufacturability. The store uses dozens of LED panels to demonstrate products and services. In addition to the usual vertical screens, a unique decorative and navigation structure for Russia was developed, which is located at the top of the retail space.

To test new approaches in customer service, the electronic queue system has been improved. Store visitors can enter their phone number in the terminal, receive SMS, and go to one of the free areas for consultation. In total, seven such zones are provided - this will allow store employees to effectively manage the client flow, and visitors to receive instant help.

The store employs the best specialists of the retail chain, who are selected according to a special program. They receive additional training on products and services presented in the store.

First of all, the MTS store is a place where customers can get a high level of expertise, customer service and experience. We strive to make this level constantly grow, so we regularly test stores of new formats. We plan to launch ecosystem stores in several million-plus cities by the end of 2024, "said Andrey Gubanov, General Director of MTS retail chain.

In addition to MTS services, the store presents hundreds of different products. All of them are divided into zones: "Smartphones," "Sound," "TV," "Portable equipment," "Smart home," "Accessories."

In December 2023, MTS began opening Expert stores. In the future, MTS plans to open up to one thousand such stores throughout the country to replace old retail outlets.

Raising RUB 40 billion in the placement of two floating rate exchange-traded bonds

MTS PJSC, digital ecosystem, March 22, 2024 announced the closure of the book of applications for the placement of two issues of exchange-traded bonds with a floating coupon rate: series 002R-04, tied to the RUONIA indicator, and series 002R-05, tied to the key rate of the Bank of Russia. The final volumes of placement amounted to 17 billion rubles for the issue of 002R-04 and 25 billion rubles for the issue of 002R-05.

The collection of applications for the purchase of bonds took place on March 21, 2024. The initial benchmark of the spread to RUONIA and the Bank of Russia key rate did not exceed 1.60%. During the collection of applications, benchmarks were reduced three times and were finally set at 1.40% and 1.30% per annum, respectively, for RUONIA indicators and the Bank of Russia key rate. More than double re-signing made it possible to increase the total volume of placement to 42 billion rubles with the initially declared 20 billion rubles. The final volumes of placement amounted to 17 billion rubles for the issue of 002R-04 and 25 billion rubles for the issue of 002R-05.

The simultaneous placement of two issues of bonds with a floating coupon rate tied to two different market indicators at the maximum market calculation principles allowed to maximize the demand of investors focused on both indicators. The record volume of placement for both MTS and the telecom sector confirms the high demand of market participants for bond issues of MTS, the industry leader, - said Alexander Smirnov, Director of the Corporate Finance and Treasury Department of MTS.

Bonds are planned to be included in the quotation list of the First level of the Moscow Exchange. Credit rating is expected from Expert RA, NKR and ACRA agencies.

The term of circulation of securities is 3 years and 6 months. The nominal value of the bonds is 1000 rubles, the coupon period is 91 days, the placement price is 100% of the face value. The date of technical placement is March 28, 2024.

The funds raised will be used to refinance the company's current debt and general corporate purposes.

Incorrect configuration of MTS equipment led to failures of Asian ISPs

A failure to configure equipment on the MTS network led to a malfunction in some telecom operators and Internet companies in Asia. This was announced on March 12, 2024 by Kommersant with reference to data from Qrator Labs.

We are talking about the leakage of Internet routes through the largest traffic exchange point in Hong Kong, to which Russian, local and regional operators are connected, as well as large international corporations, for example, Google and Amazon. During the outage, problems were also observed in the operation of the social network X (formerly Twitter).

Failure to configure equipment on the MTS network led to a malfunction in some telecom operators and Internet companies in Asia

As reported in the Qrator.Radar account in soccet X, that MTS mistakenly announced the BGP Internet routing prefixes from the HKIX traffic exchange point to the American first-level operator Level3. The incident occurred at about 11:00 Moscow time on March 11 and affected 329 autonomous systems in 28 countries. Potentially, such leaks could lead to interception of traffic or loss of availability, Qrator Labs told Kommersant. MTS said the incident was related to the configuration of the router during the planned replacement of equipment.

The HKIX traffic exchange point has 349 directly connected participants. Among them are such large companies as Google, Amazon,, Bytedance, Zoom as well as many telecom operators. Of the Russian companies connected to the point, one can single out "," "MTS," "Rostelecom and VimpelCom the service. DDoS-Guard Rostelecom and DDoS-Guard said that no problems were recorded during the incident.

Prior to that, the last public routing error occurred in January 2024. Then the Kazakh operator TNS-Plus accidentally incorrectly redirected routes between two Russian autonomous systems.

As the engineer of CorpSoft 24 Mikhail Sergeyev noted in a conversation with Kommersant, such incidents occur from time to time and can be caused by both human factors and technical problems.

Such incidents occur due to tuning errors, often due to the human factor. This can happen, for example, when configuring new equipment or adding new channels - Sergeyev commented on the news.[8]

TAdviser interview with MTS Link Product Director Alexander Brovko

In the Fairvale of 2024, Alexander Brovko, Product Director of MTS Link, answered TAdviser's questions on the current state, trends in the Russian unified communications market, about the reasons and goals of rebranding, about the company's services, business development plans for this year. Read more here.

Obtaining biometrics accreditation

In January 2024, MTS became the first mobile operator in Russia to receive state accreditation to work with customer biometric data. The company stated the following:

MTS PJSC announces that on January 15 [2023] it was included in the list of organizations that received state accreditation in the field of authentication based on biometric personal data.

MTS became the first mobile operator in Russia to receive state accreditation to work with biometric data of customers

As explained in the press service of MTS, thanks to the state accreditation received, the telecom operator will be able to work with biometric data of users of its services. This data is located in the Unified Biometric System (EBS). The company will also be able to connect services to various organizations with which they can confirm the identities of customers based on their biometric data. The latter, according to RIA Novosti, will protect people from fraudulent attacks.

The agency's publication notes that since the beginning of 2024, organizations that do not have accreditation with the EBS cannot collect and use the biometrics of their clients. To date, nine large companies have accreditation, including Sberbank,,. VTB Alfa-Bank

The creation of a new unified base and rules for the use biometrics of citizens is due to the need to protect human rights for the use of its biodata. Previously biometrics , it was stored in private companies and, banks now, a single database will be formed, thanks to which it will be possible to see which organizations have biometric data of their clients.

In the future biometric , the data will be able to replace the passport when interacting with, MPSC receiving and sending mail, identifying a citizen in various life situations. It is expected that the list of biometric services will only increase.^[9]

Closing the transaction on the sale of 100% of MTS Armenia shares to the Cypriot group Fedilco

On January 24, 2024, MTS announced the closure of a deal to sell 100% of its subsidiary in the Republic of Armenia - MTS Armenia CJSC (Viva-MTS trademark) - Fedilco Group Limited (Republic of Cyprus). Read more here.

Purchase of Jurent scooter rental service

MTS closed the transaction on the acquisition of ЮрентБайк.ру LLC (Yurent service ). This was reported by MTS representatives to TAdviser on January 15, 2024. As a result of the transaction, MTS increased its stake in Jurent from 11.77% to 80.58%, having bought out shares from the founders of the company, and intends to fully integrate the company into its own ecosystem. The financial terms of the transaction are not specified. Read more here.

2023

4th place in the ranking of TAdviser "The largest IT companies in Russia"

MTS took 4th place in the ranking of the 100 largest companies operating in the Russian IT market, prepared by TAdviser in June 2024 based on the companies' revenue for 2023. Read more here.

Reduction in payments to top managers by 20%

Payments to key management personnel MTS in 2023 decreased by 20% compared to 2022. This was reported in the annual reports of the telecommunications company, published at the end of March 2024.

As Vedomosti writes with reference to MTS materials, in 2023, members of the board and board of directors of a telecom operator were charged a total remuneration of 2.36 billion rubles against 2.86 billion rubles a year earlier. The company explained the reduction in payments by reducing the number of board members. Which of the top managers left MTS is not specified.

Payments to key management personnel of MTS in 2023 decreased by 20% compared to 2022

Earlier, the MTS board included 15 people. In October 2023, Evgeny Chereshnev joined the management of the company, who took the position of vi­tse - pre­ziden­ta on the stra­tegii and in­no­vatsiyam of the group. Then the position of the vice president for corporate and legal questions of the company received Valentina Nudga. Ra­neye za­nimal Alek­sey Bar­se­gyan this post. The company did not talk about other changes in top management.

By 2023, MTS has adjusted the practice of paying remuneration and compensation for expenses to members of the board of directors in such a way that they can receive them not only in the form of shares, but also in cash, according to the company's materials for the annual meeting of shareholders. The telecom operator linked the need for their adoption by maintaining current and potential introduction of new restrictions on transactions with securities of Russian issuers and foreign exchange transactions.

MTS also explained that by adapting the remuneration of the board of directors to new realities, the company made it possible for its members who are not MTS employees, upon their application, to receive remuneration in cash instead of shares or ADR. The amount of remuneration was planned to be set at $100 thousand or its equivalent in another currency.^[10]

Opening of the Expert store

MTS PJSC, a digital ecosystem, on December 18, 2023 announced the opening of the first Expert store. In this format, MTS has strengthened its emphasis on communications with customers and the expertise that they can receive from retail network specialists. The pilot project was launched in St. Petersburg. In the future, MTS plans to open up to one thousand such stores throughout the country.

Only the best specialists of the retail chain who undergo additional training on targeted products and services are selected for expert stores. For example, in addition to the usual consultants, the store employs MTS ecosystem product specialists, as well as consultants specializing in individual brands. Another distinctive feature of the store concept is the designed space in the design format, in which all equipment and zoning can be rebuilt without significant effort and cost.

The first store is open in the Pearl Plaza shopping center. Its area is 123 sq.m., which is more than twice as much as the classic format of the MTS retail network. This made it possible to divide the space into seven main zones: Telephony, Sound, TV, Portable Equipment, Smart Home, Accessories, as well as the Service Zone, in which buyers will be able to receive Internet orders.

As of December 2023, MTS is at the stage of transformation of its retail network. This format of stores should become a point of contact for buyers, in which they will be able not only to test new items, but also to receive expert advice on a variety of issues. We plan to partially replace old stores with a new format, opening retail spaces with an area of ​ ​ 50 to 100 square meters, while we will not reduce or increase the total number of stores, "said Rustam Mustaev, Operating Director of the MTS retail chain.

Victory in the "National Bank Award"

PJSC "," a MTS digital ecosystem, won the "National Banking Award" in the nomination "The best solution for full online identifications clients" bank for a product for remote user identification. Read more here.

Transfer of quasi-treasury shares to a closed unit investment fund

MTS PJSC, a digital ecosystem, on December 20, 2023 announced the transfer of quasi-treasury shares of MTS owned by its subsidiary and constituting about 7.4% of the authorized capital of MTS to a closed mutual investment fund (ZPIF). The transaction will optimize the costs associated with owning own shares, as well as improve the effectiveness of their use for managing the company's capital and liquidity.

A subsidiary of MTS - Bastion LLC transfers its 148 600 000 ordinary shares of MTS as payment for shares in the formation of the fund.

The management company ZPIF will have the right to vote on the transferred shares, as well as the right to receive dividends and dispose of them for investment purposes as part of the investment declaration. The principles of management of MTS stakes transferred to ZPIF contain certain restrictions on their alienation and encumbrance. MTS reserves the right to further transfer quasi-treasury shares to the investment fund as part of a unified strategy for managing shareholder capital.

The transfer of quasi-treasury shares of MTS to the trust management of the management company will solve several problems at once. First, MTS Group will be able to more effectively manage dividend flows on these shares and optimize part of its expenses. Secondly, we will be able to more flexibly manage part of the company's liquid assets. And finally, the updated ownership structure will expand the capabilities of MTS to attract financial resources, - said Alexey Katunin, Vice President for Finance of MTS.

TAdviser IT Prize Winner

MTS won the TAdviser IT Prize in the category "Ecosystem Solution of the Year." The award awarded the technology platform The Platform - the core of the company's transformation from a telecom operator into a digital ecosystem. Read more here.

Sale of Armenian daughter

On November 15, 2023, the Commission for the Regulation of Public Services of Armenia (CROU) approved the sale of the Armenian subsidiary of MTS to the Cypriot company Fedilco Group Limited. The financial terms of the transaction were not disclosed. Read more here.

Closing of the book of applications for the placement of four-year exchange-traded bonds of the 002R-01 series in the amount of 25.0 billion rubles

MTS PJSC, a digital ecosystem, on October 20, 2023 announced the closure of the book of applications for the placement of four-year exchange-traded bonds of the 002R-01 series in the amount of 25.0 billion rubles with a floating coupon rate of RUONIA + 1.25% per annum.

The nominal value of the bonds is 1000 rubles, the coupon period is 91 days, the placement price is 100% of the face value. The preliminary date of placement is October 31, 2023.

The collection of applications for the purchase of bonds took place on October 20, 2023. The initial guideline of the spread to RUONIA did not exceed 1.50%. During the collection of applications, it decreased three times and was finally set at 1.25% per annum. Almost double re-signing made it possible to increase the volume of placement to 25 billion rubles with the initially declared 15 billion rubles.

The results of the placement of the first issue with a floating coupon from MTS showed increased interest from investors in the new instrument. The final benchmark of the coupon (spread), as well as the final volume of placement, once again confirmed the high credit quality and, in general, the increased demand of market participants for MTS bond issues, - said Alexander Smirnov, Director of the Corporate Finance and Treasury Department of MTS.

Bonds are planned to be included in the quotation list of the Third Level of the Moscow Exchange.

The funds raised will be used to refinance the company's current debt and general corporate purposes.

Placement of exchange-traded bonds of the 002R-01 series with a floating coupon rate

MTS PJSC, a digital ecosystem, on October 19, 2023 announced the opening on October 20 of a book of applications for the placement of its first exchange-traded bonds of the 002R-01 series with a floating coupon rate tied to the RUONIA indicator of the Bank of Russia.

The planned volume of placement is 15 billion rubles, the circulation period is 4 years, the face value is 1000 rubles. The placement price is 100% of the face value, the coupon period is 91 days, the coupon type is variable, defined as the amount of income for each day of the coupon period, based on RUONIA + spread. The reference point of the spread to RUONIA is not higher than 150 bp.

Bonds will be placed on the Moscow Exchange with the expected third level of listing on an open subscription with beech building on a spread to RUONIA. The application book opens on October 20 from 11:00 to 15:00 Moscow time, the date of placement will be determined later.

Write-off of 207 million rubles by MTS due to the purchase of Gambit Esports

On October 4, 2023, it became known that MTS had written off 207 million rubles as a result of a revaluation of the value of the Gambit Esports e-sports team. The relevant data is contained in the documents of the telecommunications operator. Read more here.

Opening of the Department of Machine Learning at the Faculty of Computer Science of the Higher School of Economics

MTS On June 19, 2023, PJSC "" announced the opening of the basic department in the direction of the deep department machine learning at the faculty. computer sciences HSE More. here

MTS became the sole owner of Gulf Stream

On June 1, 2023, MTS announced the purchase of 41.62% of Gulf Stream Security Systems JSC, as a result of which the share of the Russian telecommunications operator in the developer of smart home solutions increased from 58.38% to 100%. The financial terms of the transaction were not disclosed. Read more here.

Damage to the office in Krasnodar after explosions

On the morning of May 26, 2023, explosions occurred in the center of Krasnodar, which were the result of the fall of two drones. The governor of the Krasnodar Territory Veniamin Kondratyev wrote about this in his Telegram channel. As a result of the incident, the building of the MTS office on Morskaya Street received minor damage, the press service of the telecommunications company told TASS. They also added that the operator's employees and infrastructure were not affected, the network continued as usual.

There is damage to buildings, but the life-supporting infrastructure has not been damaged. And most importantly, there were no casualties, - said Veniamin Kondratyev.

According to a RIA Novosti correspondent, windows on the top floor of a four-story office building were knocked out, the territory in this area is cordoned off, security officials are on duty at the site. Concierge Catherine of one of the entrances of a multi-storey building closest to the office building damaged by the explosion told the news agency that she witnessed two drone attacks that shook the windows of nearby buildings.

It was a very strong rumble. First, the first (drone) flew into the blue roof of the MTS building. After 10 minutes, I heard the sound as if a scooter or moped, and then I saw a second drone. He flew behind the tower, behind the car park. We heard a terrible explosion and saw flames, a huge column of black smoke. The windows shook. The second got into the courtyard of a private house, - said the interlocutor of the publication.

The mayor of the city, Yevgeny Naumov, said that in addition to the most office building on Morskaya Street, restoration is required for neighboring apartment and private buildings on Garazhnaya Street.

In the near future, we will help restore the damage and provide all the necessary assistance to the townspeople whose housing has suffered, - added Veniamin Kondratyev on May 26, 2023.[11]

Close Control Purchase in Project Environment

On April 27, 2023, representatives of MTS PJSC informed TAdviser about the closure of the transaction for the acquisition of control in the company Project Environment LLC (SCOUT-Corporate Solutions group of companies). According to the terms of the transaction, MTS received 51% of the shares of Project Wednesday LLC. Read more here.

Investment of 90 million rubles by the MTS venture capital fund in Phishman

On April 25, 2023, the MTS Group informed TAdviser about investing through its MTS corporate venture capital fund in Phishman, a Russian developer of automated systems for analyzing, testing and training company employees in methods of protection against cyber attacks. Under the terms of the deal, the volume of investments will be 90 million rubles. The investment of the MTS venture capital fund will go to business development and the development of new solutions. Read more here.

TAdviser interview with cybersecurity director Evgenia Naumova

Evgenia Naumova, Director of Cybersecurity MTS, General Director of MTS RED, answered TAdviser's questions about the creation of a specialized company - a developer of solutions and a provider of cybersecurity services, the market situation, plans for the development of a new business. Read more here.

Ban for employees to work from abroad

The largest mobile operator in Russia - MTS - in April 2023 banned its employees from working remotely from abroad. Remote access to corporate resources for employees will be limited in June.

MTS bought Segmento

On April 6, 2023, MTS announced the purchase of the Segmento advertising platform from the Sistema AFK venture capital fund. As a result of the deal, MTS will strengthen its own advertising circuit and strengthen its position in the AdTech market, the press service of the Russian telecommunications operator reports. Financial and other parameters of the agreement are not disclosed. Read more here.

MTS has created a separate company for smart home projects

At the end of March 2023, it became known about the creation of a company by the telecom operator MTS, within the framework of which it is planned to develop projects in the field of smart home. The established structure was called MTS Smart home LLC. Read more here.

MTS changed its strategy and ceased to consider itself a telecom operator

On March 30, 2023, MTS presented an updated strategy, the continuation of which was also the rebranding - the company decided to change the logo, abandoning the image of the egg that accompanied it since 2006.

The company emphasizes that in recent years MTS has made a transition from a telecom operator to a digital ecosystem, which, in addition to the telecommunications direction, includes businesses in the field of B2B services, an important place among which is occupied by cloud services, as well as businesses in the field of media, auto, finance, tourism, advertising. Since 2015, MTS has been developing digital services, and by 2023 it has created an ecosystem based on the group's businesses. Now MTS positions itself as a digital ecosystem, and not as a familiar "operator," and plans to develop in this vein.

A particular focus in this development is on the B2B direction. MTS President Vyacheslav Nikolaev, speaking at the company's event on March 30, noted that telecom companies have never been the main ones in the B2B region in Russia, and earlier operators' revenues from B2B rarely exceeded 15%. B2C Rules Ball. But now, with the development of technologies, it turns out that a large number of services are formed next to the telecom, "extremely in demand" by customers.

In this case, we are talking not only about infrastructure and clouds - obvious things for telecoms, but also, for example, about the ability to correctly and conveniently take payment from the client, ensure cybersecurity, etc. For example, since 2022, MTS has included MTS Red (Serenity Cyber ​ ​ Security LLC), a subsidiary in the field cyber security that develops relevant products. One of the latest announced is the Cicada 8 platform for continuous monitoring of the security of organizations using. artificial intelligence

Now in B2B MTS began to quickly grow with services that were previously not peculiar to telecom and, moreover, MTS began to build Telecom 2.0, a modern digital telecom that, first of all, is aimed at business, and not at private clients, Vyacheslav Nikolaev said. At the same time, the cloud business should become an important "pillar of the existence of MTS."

Another focus is on the growth of ecosystem clients and increased loyalty. In total, MTS has about 80 million customers, of which more than 14 million are ecosystem. The latter, the president of MTS explained, mean those in whom MTS is confident that they not only use various MTS services, but also who benefits from receiving these services in a package. MTS also makes them a discount for being customers.

Ecosystem clients bring on average 2 times more money to MTS than non-eco-system clients, and the outflow of such clients is 3 times lower. This is a very high figure, because in telecom, the main complexity of the business has always been the outflow of customers. At some times, the annual outflow of customers reached up to 40%, the President of MTS noted.

Therefore, in a situation where some separate non-telecom service does not bring a lot of money to the company - "we often do not even mind that it works to zero," but brings customer loyalty, in telecom it is all fought off many times. According to Nikolaev, despite the fact that analysts write about the growth of telecom recently by 2-3%, MTS has higher growth all the time - due to the cut of customers who use other ecosystem services.

Our ecosystem clients are growing very well, and this allows us to be more optimistic about the future in terms of the fact that we could attract more and more services that we will provide to customers. We can produce them ourselves, or we can invite our partners, "said Vyacheslav Nikolaev.

In addition, MTS is working on a strategy for what its loyalty system will be in the future.

Development, as ecosystems, required change at the level of internal IT. MTS has been seriously rebuilding its IT system for the past 4 years, the company's president said, and has come to such a concept as an "ecosystem module." All MTS products, although imperceptibly outside, have 10 ecosystem modules built in. They are essential for seamless customer experience at every point of customer contact with digital products.

The company and the management system have changed: MTS now has many companies that are not directly managed - they have their own boards of directors, their own brands.

Having changed inside, MTS realized that it was time to change outside. And on March 30, MTS showed its new logo and other elements of the new corporate design. The old brand was very recognizable, but at some point it began to restrain MTS when many different companies appeared in its composition, said Vyacheslav Nikolaev. The new logo provides more variability for the group of companies to use.

At the same time, a separate logo has been invented for the cloud business, which has high expectations.

Purchase of 50% of Project Environment

At the end of March 2023, it became known about the sale of the controlling stake (more than 50%) of the company "Project Environment" to a telecommuting operator. MTS According to writes, the Kommersant value of the transaction amounted to about 1.5-2 billion. rubles More. here

Purchase of Di Wai Technologies LLC

On March 23, 2023, MTS announced TAdviser a deal to acquire a company DY Technologies (Di Vai Technologies LLC), which is engaged in a construction plant for industrial production automotive electronics a special economic zone (Technopolice "Moscow" Alabushevo site). According to the Unified State Register of Legal Entities, as a result of the transaction, a subsidiary of MTS - LLC "" became the owner of 100% of Di Vai Technologies LLC. MTS Auto More. here

Plan to invest up to 1 billion rubles in technology startups

On March 22, 2023, MTS announced to TAdviser plans to invest up to 1 billion rubles in the technology business this year. In particular, the companies intend to invest the entire volume of the fund in projects that, according to MTS, will strengthen the products and verticals of the ecosystem. The amount of investment in one project will range from $0.5 million to $5 million.

As specified in the company, the focus of the fund startups is the round A +/B stages, which have strategic value for the MTS ecosystem. Among the key parameters for selecting projects are prospects for rapid growth and synergy with MTS business areas. The company will select startups from Russia and. countries CIS

The main industries for investment correspond to product verticals within the MTS ecosystem: retail, media, entertainment, cloud services, cybersecurity, tourism, the Internet of Things and a smart home. The decision on investments in MTS will be made based on the size of the market and the speed of its growth, the protection of the product from competitors, the team and the terms of the transaction.

"Despite the fall in the Russian venture capital market, which in 2022 amounted to 55 to 80% according to various estimates, MTS does not reduce the pace of investment and continues to actively work with technology companies. This year we plan to invest 3-5 transactions with a total amount of up to 1 billion rubles. We are considering mature projects with a working business model and validated customer demand, "said Dmitry Kurin, MTS Innovation and Investment Director.

Buying 67% Buzzoola

On February 22, 2023, MTS announced the purchase of 67% of the Buzzoola native advertising platform. The financial terms of the transaction were not disclosed. At the same time, the press release says that the companies signed a binding agreement, according to which MTS is provided with the possibility of buying out the remaining 33% stake in the startup in 2024. Read more here.

Organization of production of multimedia systems for cars in Tver

MTS is engaged in organizing the production of automotive multimedia systems in Tver. This became known on February 2, 2023. Read more here.

Investing $100 million to create your own metaverse

At the end of January 2023, MTS announced the investment of $100 million in the creation of its own metaverse. The project will be implemented by the participants of the MTS AI accelerator, which will be selected by startups, including international ones. Read more here.

Creating a music label

On January 9, 2023, MTS announced the launch of its own music label. He will distribute tracks to all music streaming platforms, as well as provide marketing support, promo and PR services. In addition, the artists of the MTS label will be able to "fill the content with concert venues managed by MTS Live." Read more here.

2022

1st place in the ranking "The largest participants in the Russian unified communications market"

MTS PJSC took 1st place in the TAdviser rating, prepared on the basis of revenue from the implementation of projects in the field of unified communications in Russia in 2022 and published in December 2023. Read more here.

Closing of the book of applications for the placement of exchange-traded bonds 001R-23 by 15 billion rubles

MTS PJSC on December 15, 2022 announced the closure of the book of applications for the placement of two-year exchange-traded bonds of the 001R-23 series in the amount of 15.0 billion rubles with a coupon rate of 8.40% per annum. The technical placement of bonds will take place on December 21, 2022 on the Moscow Exchange.

The nominal value of the bonds is 1000 rubles, the coupon period is 91 days, the placement price is 100% of the face value.

The collection of applications for the purchase of bonds took place on December 14, 2022. The initial rate benchmark is no higher than 8.65% per annum. During the collection of applications, it decreased three times and was finally set at 8.40% per annum.

After a short pause in early 2022, MTS Group placed six ruble bond issues totaling RUB 72 billion over the past seven months, which confirms the consistently high interest of Russian investors in our bonds. High assessment of the credit quality of the company by investors allows us to maintain optimal levels of risk premium above the base curve, - said Alexander Smirnov, Director of the Corporate Finance and Treasury Department of MTS.

Bonds are planned to be included in the quotation list of the First level of the Moscow Exchange. It is expected that the securities will be assigned a credit rating from the Expert RA and NKR agencies. The organizers of the issue were Gazprombank, BCS Global Markets, VELES Capital, MKB, MTS-Bank, Sinara Investment Bank, IFK Solid, placement agent - Gazprombank.

The funds raised will be used to refinance the company's current debt and general corporate purposes.

Completion of the reorganization of MTS into the company Tower Infrastructure LLC with large assets

On December 16, 2022, MTS announced the completion of the reorganization, under which the tower assets of the telecom operator were allocated to a new company - Tower Infrastructure Company LLC (BIC). Read more here.

MTS sells Czech microelectronics component plant

In mid-November 2022, it became known about the sale of the plant by the company MTS Czech. We are talking about an enterprise., NVision a.s Which manufactures and supplies electronic compellants for the automotive industry and components for. microelectronics More. here

Investing 200 million rubles in Rubbles

On November 11, 2022, MTS announced the investment of 200 million rubles in Rubbles. Under the terms of the deal, the telecom operator's venture capital fund will receive no more than 10% in the startup. Read more here.

Charge from the FAS in violation of antimonopoly legislation

FAS accused MTS of violating antimonopoly laws. This became known on October 12, 2022.

According to the agency, the company increased the cost of mobile services by 9.5% in early January, and then again - from August to October. As a result, the total increase in tariffs amounted to more than 20%.

The company attributed this to an increase in its costs, but did not provide confirmation of this, the department added.

MTS was obliged to reduce tariffs to an economically reasonable level and pay a fine (its amount as of October 2022 has not been determined)^[12]

Details about the purchase of Navitel

On April 25, 2023, it became known that the operator MTS disclosed the details of the acquisition and Navitel Group of Companies Russian provider navigation mapping solutions. More. here

Investing in Navitel

MTS invested in Navitel for the development of navigation and mapping solutions. The Russian telecommunications operator announced this on October 7, 2022. Read more here.

Introduction of measures to support mobilized employees

On September 29, 2022, measures to support employees of Russian cellular companies that fell under partial mobilization became known. Read more here.

Exclusion from 5G Developers Alliance

Russian companies have lost their membership in the international alliance OpenRAN (Open Radio Access Network), consisting of telecom equipment developers, Vedomosti writes. In particular, the operator MTS and Skoltech have been temporarily suspended from the activities of the alliance. This became known on September 21, 2022. Read more here.

Disclosed the cost of purchases of Bronevik and Webinar services - 4 billion rubles

At the end of August 2022, the cost of transactions for the purchase of Bronevik and Webinar services by MTS became known. The Russian telecommunications operator named prices as part of its reporting for the first half of 2022. Read more here.

MTS invested in the Belarusian educational online platform

In August 2022, MTS invested in LogicLike through its corporate venture capital fund. The parameters of the transaction, including the volume of investments and the share of the Russian telecom operator in the startup, were not disclosed. Read more here.

Start of automatic ADR conversion

On MTS August 16, 2022, PJSC "" announced the submission to KB J.P. Morgan Bank International"" (LLC) of a notice on the start of automatic conversion of The American Depositary Receipts (ADR) into ordinary shares of MTS PJSC, in accordance with the requirements Russian of the law. KB "J.P. Morgan Bank International (LLC) is a Russian depository in which a depository account of the MTS depository program is opened.

In the process of automatic conversion, Russian depositories that record ADRs will have to write off ADR holders and credit ordinary shares of MTS PJSC to the holders' accounts. No action is required from ADR holders, regardless of whether they are or are not residents of the Russian Federation. The automatic conversion process will approximately take about 3 weeks, starting August 16, 2022.

ADR holders may also take advantage of forced conversion intended for ADRs that are accounted for in foreign depositories and for those holders that cannot convert otherwise due to restrictive measures imposed. For this, ADR holders must contact J.P. KB no later than October 11, 2022. Morgan Bank International "(LLC) with a free form application. Documents confirming the possession of the ADR and other related information will need to be attached to the application. At KB "J.P. Morgan Bank International "(LLC) has an obligation to refuse to forcibly convert receipts if the total number of ADRs indicated by all applicants exceeds the corresponding number of MTS PJSC shares held in the depository program depot account. As a result of forced conversion, the owners of ADRs will receive ordinary shares of MTS PJSC to depository accounts, which should be opened by them in KB J.P. Morgan Bank International "(LLC). The forced conversion must be completed no later than October 25, 2022.

As of August 2022, operations for the sale of shares received as a result of forced conversion are temporarily limited, in accordance with the decision of the Bank of Russia.

Building an Information Security Company

In August 2022, MTS created a company in the field of information security - Serenity Cyber ​ ​ Security LLC. The authorized capital of this legal entity amounted to 200 million rubles, according to the data of the SPARK-Interfax system. Read more here.

Entering the market of partnerships with regional broadband access operators

On August 4, 2022, MTS announced the development of a different format of partnerships with regional operators to create and promote joint converged products.

Not territories - individual cities or regions - where MTS does not have its own network, the BROADBAND ACCESS company in partnership with regional fixed operators communications will launch joint converged products on the market, including fixed and mobile services. Project will allow MTS to enter the market with interesting package services, where high-quality local operators are already present, and together with them offer a more popular product with several digital services: fixed broadband access, mobile communications, online cinema KION and/or. IPTV

The project has already been launched in the Krasnoyarsk Territory with Orion Telecom. In the near future, MTS plans to launch convergents in Khakassia and the Irkutsk region. By the end of 2022, MTS expects to launch such packages in 15 regions.

We are interested in expanding the market and providing the maximum number of users with full-scale high-quality digital services. And for these services to reach subscribers faster, partnerships with regional market leaders are the shortest way. At the same time, this format is beneficial both for the consumer, who will receive a full range of digital services with a tangible discount to their recruitment from different companies, and for the local operator, who will strengthen his position and will be able to take advantage of the opportunities to promote the recognized strongest Russian brand MTS, while maintaining full independence of the business. At the same time, MTS will be able to enter new territories with an attractive product, saving on the construction of its own networks, - commented Yury Nefedov, commercial director of the mass market of MTS PJSC.

Closing a deal to acquire a majority stake in Webinar

The Russian company MTS, which provides digital, media and telecommunications services, closed the deal to acquire a controlling stake in the Webinar group of companies (Webinar Meetings, Webinar.ru, We.Study, COMDI brands), a Russian developer of solutions for video meetings, webinars and online events. This was announced on July 20, 2022 to TAdviser by MTS representatives. The financial terms of the transaction were not disclosed. Read more here.

Closing the transaction for the acquisition of a 100% stake in the Bronevik group

On July 13, 2022, MTS PJSC announced the closure of the transaction to acquire 100% of the Bronevik group (Bronevik Online LLC and Bronevik Company LLC), one of the representatives of the Russian online hotel booking market, to develop the business direction of MTS Travel (MTS Travel LLC) in the field of travel and tourism. Read more here.

Re-election of the Chairman of the Board of Directors and approval of MTS Management Board members

On June 24, 2022, MTS PJSC announced the decisions of the Board of Directors of MTS PJSC adopted at the meeting.

The Board of Directors adopted the following resolutions:

• Re-elect Felix Yevtushenkov as Chairman of the Board of Directors of MTS PJSC.
• Re-elect Regina von Flemming, Deputy Chairman of the Board of Directors of MTS PJSC;
• Confirm the status of independent directors for the following members of the Board of Directors of MTS PJSC: Paul Berriman, Regina Von Flemming, Shaigan Heradpir, Thomas Holtrop, Nadia Shurabura and Valentin Yumashev;
• From July 01, 2022, determine the following members of the Management Board of MTS PJSC:
  • Vyacheslav Nikolaev, Chairman of the Management Board, President of MTS PJSC;
  • Alexey Barseghyan, Vice President, Corporate and Legal Affairs;
  • Victor Belov, Vice President of Engineering;
  • Larisa Bodyagina, Vice President, Human Resources;
  • Pavel Voronin, First Vice President, Technology;
  • Inesa Galaktionova, First Vice President, Telecommunications Business;
  • Alexander Gorbunov, Vice President for Strategy and Development;
  • Olga Ziborova, Vice President for Ecosystem Development and Marketing;
  • , Ruslan Ibragimov Vice President, Interaction with; public authorities
  • Farid Kamalov, Vice President, Retail Business Development;
  • Andrei Kamensky, Vice President, Finance;
  • Igor Mishin, Vice President of MTS Media;
  • Yuri Samoilov, from July 01 will take over as vice president for infrastructure development;
  • Ilya Filatov, Vice President for Financial Services, Chairman of the Management Board of MTS-Bank PJSC
  • Alexander Hanin, vice president of artificial intelligence.

Leaving the New York Exchange

On June 9, 2022, it became known about the upcoming departure of MTS from the New York Stock Exchange. According to the company, it sent a statement to the depository bank JPMorgan Chase to terminate the depositary agreement under the American Depositary Receipts (ADR) program from July 13, 2022.

JPMorgan will have to notify holders of depositary receipts about the termination of the MTS ADR program, the press service of the Russian telecom operator said.

US MTS depositary receipts are listed on the New York Stock Exchange (NYSE) under the ticker symbol MBT, at the end of February 2022, trading in securities on this platform was stopped. Three months later - in May - the government commission allowed MTS to continue the appeal of ADR abroad in Russia until July 12, 2022.

In April 2022, Russian President Vladimir Putin signed a law delisting depositary receipts of Russian companies from foreign sites, followed by conversion into Russian securities. The proposal for delisting, followed by conversion into Russian securities, was previously received from the Ministry of Economic Development. The exception is those companies in respect of which they will decide to maintain the listing. Norilsk Nickel, Novatek and Polyus received permission to continue the depositary receipt program.

MTS ADR can be converted into ordinary shares of the company. MTS promised to report how this will happen on June 9, 2022 in the near future.

In early April 2022, in the financial report, MTS indicated that the adoption of the delisting law could have a significant negative effect on liquidity and on the market price of American depositary receipts and ordinary shares of the company.

By June 10, 2022, MTS ordinary shares are traded on the Moscow Exchange under the ticker symbol MTSS. The ratio is 1 ADR to 2 shares.^[13]

Creation of MTS Travel

On June 8, 2022, MTS registered a new subsidiary, MTS Travel. Its main activity is the tourism business. Read more here.

Combining LTE frequencies in Moscow and speeding up Internet speeds to 800 Mbps

At the end of May 2022 MTS , it combined all 4G frequencies To Moscow in and overclocked the Internet to 800 Mbps. As noted in the company, thanks to the aggregation of frequency bands of the standard LTE , the operator will be able to more efficiently use the frequency resource and save up to 20% of costs when expanding the network.

MTS has combined using new technologies 1 all five LTE bands available on the commercial network of Moscow and the capital region - 800, 1800, 2100, 2600 and TDD2600 MHz. The extended frequency band is available on all sections of the radio network after the replacement of equipment carried out in the region since the fall of 2020. As a result of aggregation, the total LTE frequency band in the Moscow metro is 80 MHz, on the rest of the modernized network of the Moscow region - 70 MHz.

Due to the combination of all available frequencies, the average speed of mobile Internet on the modernized MTS network increased in Moscow and the region by an average of 35%. MTS noted that frequency range aggregation allows high-speed mobile Internet sessions without reducing the quality of "heavy" content. Consistently high speed in the MTS network, close to the 5G level, is available to owners of smartphones with support for gigabit LTE, such as iPhone 12, Samsung S21, Xiaomi Mi11, etc.

MTS plans to combine all available LTE bands in other regions of Russia, including St. Petersburg, Leningrad Region and the Republic of Bashkortostan. In the near future, the company plans to begin aggregating all available ranges in the north-west of Russia and the Volga region, said Alexei Maslyankin, director of the MTS radio access network department at the end of May 2022.

He added that LTE traffic in the Moscow region is growing at about 35% per year, and dynamics are expected to remain high in subsequent years.^[14]

Start selling discounted and used smartphones

On May 24, 2022, MTS, a Russian company providing digital, media and telecommunications services, announced the start of sales of discounted and used smartphones in its own retail and online store. All devices in the "How New" category are covered by the warranty, and their cost can be up to 50% lower compared to devices that have not yet been used.

Discounted and used gadgets go on sale from the MTS retail network's own post-sale service center. These are models that were returned by buyers within a two-week period or have incomplete equipment, damaged packaging, and lack protective films. Smartphones are practically no different in appearance from unused devices. Each device undergoes hygienic cleaning and a health check from an authorized service center.

Discounted and used models have a 90-day warranty from the MTS retail network and a residual warranty from the manufacturer.

At the first stage, discounted and used devices can be purchased in Moscow - devices are available for purchase in stores and through the website, where a special section with such models has appeared. Hundreds of smartphones from Samsung, Honor, Huawei, Xiaomi and other brands are available to customers. The range and geography of the project will expand.

"The market for used gadgets in Russia continues to grow. For our part, we make it more transparent and safer for customers. Now our buyers can not only hand over the old device under the trade-in program, but also buy a used gadget in good condition at a bargain price. By purchasing discounted and used smartphones with a guarantee, customers can be sure of their reliability. For our company, this is a good opportunity to provide users with an additional way to save on buying high-quality gadgets, "- noted Director of MTS Retail Network Development Pavel Sukhovarov.

Closing of the book of applications for the placement of exchange-traded bonds 001R-19 by 10.0 billion rubles

On April 25, 2022, MTS PJSC announced the closure of the book of applications for the placement of three-year exchange-traded bonds of the 001R-19 series in the amount of 10.0 billion rubles with a coupon rate of 11.69% per annum. The technical placement of bonds will take place no later than May 13, 2022 on the Moscow Exchange.

The nominal value of the bonds is 1000 rubles, the coupon period is 91 days, the placement price is 100% of the face value.

The collection of applications for the purchase of bonds took place on April 22, 2022.

In the context of a high key rate, the results of the bonds placement once again demonstrated a high assessment of the level of credit quality of MTS, which is supported by the company's consistently successful financial and operational results and its leading positions in the market. The demand for the issue of bonds from Russian investors during the placement makes it possible for MTS, as one of the most successful issuers in the domestic debt market, to offer new issues on attractive terms for both investors and the company itself in the near future, - said Alexander Smirnov, director of the corporate finance and treasury department of MTS.

Bonds are planned to be included in the quotation list of the First level of the Moscow Exchange. It is expected that the securities will be assigned a credit rating from the Expert RA agency. The organizer of the issue and the placement agent was BC Region. The funds raised will be used for general corporate purposes.

Invests 1.7 billion rubles in the development of the network at resorts

On April 21, 2022, MTS announced the investment of more than 1.7 billion rubles in the development of its network in Russian resorts. The allocated funds will be used to modernize the telecommunications infrastructure, increase the capacity, speed and coverage of networks.

For the 12-month period, which ended in April 2022, MTS carried out comprehensive work to expand and increase the performance of networks in the resorts of the Krasnodar Territory, The Republic of Dagestan, the Caucasian Mineral Waters and the Altai Republic, having analyzed large data on the distribution of tourist flows, identifying popular destinations when buying tickets and booking hotels, as well as other information, on the basis of which MTS identified the most popular places of recreation of the upcoming holiday season and spring holidays.

In the Krasnodar Territory, on the Black Sea coast from Sochi to, Anapa including and, [[|Gelendzhik]] Novorossiysk as well as on the Azov coast in the areas of Yeisk, the villages of Dolzhanskaya, Golubitskaya near Peresypi and Kuchugur, MTS improved the quality of coverage of networks LTE along the entire length of the coast. Due to the modernization of 80% of the existing equipment and the construction of more than 630 base stations in the region, network capacity increased to 50%. At 553 base stations, reframing was carried out for the LTE 2100 range. These measures made it possible to increase the speed of mobile Internet in the resorts of the Krasnodar Territory by an average of 60%.

In the Republic of Dagestan, on the Caspian coast from Makhachkala to Derbent, MTS built over 230 base stations, carried out work to double the expansion of the LTE 2600 band, which made it possible to increase the network capacity by 40% in the resort area and ensure an average increase in Internet speed by 20%.

All resort cities and large recreational complexes of the Caucasian mineral waters in the Stavropol Territory are provided with a stable connection. In these territories, MTS built more than 180 base stations, increased network capacity by 50% and ensured an average speed increase of 40%. Until the summer of 2022, the company will carry out work to expand the frequency band for the LTE 1800 network.

In the Altai Republic, on the banks of Katuni from Gorno-Altaysk to Chemal, MTS carried out a comprehensive modernization of the resort cluster network, built dozens of new base stations, which ensured an increase in capacity by 30%, and the average speed of mobile Internet by 15%.^[15]

Purchase of 58.38% of the supplier of security systems "Gulf Stream" for 2 billion rubles

MTS bought 58.38% of the supplier of security systems "Gulf Stream" for 2 billion rubles for the development of projects in the field of smart home. The deal was announced on April 14, 2022. The seller of shares of Gulf Stream Security Systems JSC purchased by MTS was not disclosed. Read more here.

Investing 72 million rubles in the food tech company Bartello

On April 11, 2022, MTS announced the investment of 72 million rubles in Bartello. The Russian mobile service, with the help of which users can independently book a table, make and pay for an order in popular bars, clubs and restaurants, will be used by MTS to develop a mobile application for buying MTS Live tickets. Read more here.

Sistema's share in MTS fell below 50%

On March 24, 2022, it became known that AFK Sistema reduced its effective ownership in MTS to 49.94%. This happened as a result of the transaction, as a result of which the President and Chairman of the Board of MTS Vyacheslav Nikolaev received 19.9 thousand ordinary shares of the company in addition to his share of the shares of the telecom operator received earlier as part of long-term incentive programs.

Nikolaev's share increased as a result of the transfer to him of ordinary shares belonging to the MTS subsidiary Bastion LLC. And the decrease in the effective share of AFK Sistema occurred due to the fact that it is not a party to this transaction, the company explained. After the transfer of shares, Vyacheslav Nikolaev's share in MTS exceeded 1%.

The increase in my ownership in MTS at this difficult moment is due to strong confidence in the prospects, strategy and future of the company. In the current circumstances, MTS can get a new powerful impetus in development, when domestic business will play an even more significant role in the country's economy, says Vyacheslav Nikolaev. - MTS is a strong business with world class products and a professional team. Our business model combines the sustainability of basic telecom business with new promising areas based on advanced digital solutions. Despite all the challenges, MTS has remained true to its strategy for almost three decades, providing reliable services to tens of millions of customers.

Earlier, Nikolaev owned 0.06% of the company's shares, they were received by the president of MTS as part of a long-term motivation program. The current transfer of shares to Nikolaev was approved by the operator's board of directors on the recommendation of its remuneration and nomination committee.

The total share of Sistema PJSC and its subsidiaries in the capital of MTS by March 24, 2022 is 42.085% of the total volume of MTS ordinary shares, including shares circulating in the form of ADR.

Stopping trading in shares on the American stock exchange

At the end of February 2022, the American exchanges Nasdaq and NYSE stopped trading in shares of Yandex, Ozon, MTS, Mechel and Cian.ru after the introduction of US sanctions against Russia. Read more here.

Investing in URent scooter rental service

The Russian scooter rental service Urent raised 2.09 billion rubles to double the fleet and expand in. RUSSIAN FEDERATION In addition, with the funds received, it is planned to open new service centers, improve security and develop B2B products, such as a service for courier services. This was announced on February 21, 2022. Most of all in the framework of the investment transaction startup invested - MTS 740 million rubles. The direct investment fund VPE Capital invested 700 million rubles, the venture capital fund of the VEB Ventures group "" - 650 ВЭБ.РФ million rubles. More. here

2021

Purchase of 25% of the Monumental Vision film studio

In early December 2021, it became known about the sale of 25% of the Monumental Vision film studio to MTS. The financial terms of the transaction were not disclosed. The representative of the telecom operator, in a conversation with Kommersant, only said that MTS had acquired a stake at par and would issue a loan to finance the operating activities of Monumental Vision. Read more here.

Increase in the volume of venture capital fund by 1 billion rubles

MTS PJSC on November 11, 2021 announced an increase in the size of the venture capital fund by one billion rubles. The investment focus of the fund will be projects to develop and strengthen the position of existing ecosystem products in the market and enter promising food niches.

The MTS venture capital fund will invest up to $2 million in technology startups at the seed stage and in round A. To the main areas of the fund - fintech, media, Sharing economy, EdTech and the Internet of Things, projects from the field of smart home, wellness and other areas will be added related to the provision of digital solutions to a large circle of users.

Over the two years of the fund's operation, most of its funds have been invested and the allocation of additional capital is a confirmation of the value of this tool for the development of the MTS group. The fund's strategy allows you to select the best projects in the market to create new partnerships or enter new niches. For example, MTS already has its own smart home solutions and investments in promising companies from this area will quickly expand the current product portfolio. We are also ready to consider digital b2c platforms for launching new ecosystem directions, including wellness, - commented Dmitry Kurin, MTS Director for Innovation and Investment.

The MTS venture capital fund was created in 2019 on the basis of the MTS StartUp Hub innovation and investment center, its portfolio includes the TalkBank artificial intelligence fintech platform, the KonnektU client data management platform, the Academy of Changes online educational platform and other companies.

MTS has allocated cell towers to a new company

At the meeting of shareholders, MTS which took place in the form of absentee voting on September 30, 2021, a reorganization was approved, involving, among other things, the creation of a new company - Tower Infrastructure Company"." In it telecommunication , the operator allocated all passive infrastructure (cellular towers, masts and poles). More. here

Purchase of Sistema Capital Management Company for 3.5 billion rubles

On September 17, 2021, it was announced the sale of 70% of the authorized capital of Sistema Capital Management Company LLC to MTS for 3.5 billion rubles. As a result of the transaction, MTS became the sole owner of the company. Read more here.

KonnektU Client Data Platform Investment

On August 30, 2021 , MTS announced the signing of a binding agreement on the investment of its corporate venture capital fund in the KonnektU client data management platform. The volume of MTS investments in round A will amount to 120 million rubles. Read more here.

Investing in the EdTech platform "Academy of Change"

In early August 2021, it became known about investing 242 million rubles in Academy of Change"." A fund (TMT Investments acted as the main investor), a corporate venture capital fund, MTS as well as a group of companies Quantum A Group of Companies, etc. invested in the EdTech platform. More. here

Acquisition of a controlling stake in the Factorin blockchain platform

On July 27, 2021, the international investment company Digital Horizon announced to TAdviser that it had closed the deal to sell a controlling stake in the Factorin blockchain platform of MTS PJSC. Read more here.

Taking a loan from Sberbank in the amount of 30 billion rubles

On July 16, 2021, MTS announced a loan from Sberbank in the amount of 30 billion rubles. It was attracted within the framework of a revolving credit line opened by a telecommunications operator in a state bank in May 2018 with a total limit of 150 billion rubles. After the new transaction, the total volume of existing MTS loans attracted from Sberbank will amount to 115 billion rubles.

MTS carries out continuous and consistent work to optimize the current debt and attract new financing. Another loan from Sberbank confirms this course, and is also another step to strengthen mutually beneficial relations between our companies, "said MTS Vice President for Finance Andrei Kamensky, whose words are quoted by the press service of the telecom operator.

At the same time, MTS did not specify for what purposes the credit 30 billion rubles will go. Earlier, Andrei Kamensky said that improving the debt structure is one of the key elements of the company's financial strategy.

Against the background of improving the macroeconomic situation, we continue to actively work to reduce interest rates in the debt portfolio, increasing the maturity of obligations and diversifying sources of financing, he said.

Timur Nigmatullin, investment manager of Otkritie Broker, suggests that MTS needs additional liquidity, since it will soon pay dividends and needs a source of financing. The company chose credit financing, and not the placement of bonds, which indirectly confirms the purpose of the funds, he said.

At the end of the first quarter of 2021, the total debt of the MTS group amounted to 422.4 billion rubles (excluding borrowing costs). Part of the long-term debt amounted to 37.3 billion rubles with the level of cash and cash equivalents in the amount of 57.3 billion rubles.^[16]

Purchase of the GreenBushDC data center for 5.2 billion rubles

July 5, 2021 MTS announced the acquisition data center GreenBushDC for 5.2 billion (rubles taking into account the debts of the purchased company). The deal is closed. More. here

Purchase of MTT for 5 billion rubles

On June 30, 2021, it was announced the sale of 100% MTT to MTS for 5 billion rubles. The deal was approved by the Federal Antimonopoly Service (FAS) and has already been closed. Read more here.

Investing in TalkBank's fintech platform

On June 8, 2021, it became known about the attraction of TalkBank investments by the Russian fintech company in the amount of 218.36 million. rubles The funding round was led by venture the fund, MTS which invested more than half of the indicated amount. More. here

Agreement with Microsoft and SAP CIS on the development of cloud technologies in Russia

Microsoft in Russia, the Russian company for the provision of digital, media and telecommunications services MTS and the supplier of corporate SAP applications in the CIS have agreed on tripartite cooperation on the development of the cloud market in Russia. The corresponding agreement of intent on June 3, 2021 was signed by SAP CIS CEO Andrei Filatov, Microsoft President in Russia Kristina Tikhonova and MTS President Vyacheslav Nikolaev. Read more here.

MTS will allocate network infrastructure and data centers to the new company

On May 20, 2021, it became known about the decision of MTS to create a new company in order to transfer most of its infrastructure to it, including mobile and fixed communication networks, switching equipment, as well as cloud business and data centers. Read more here.

MTS spends 50 billion rubles on compliance with the "Spring Law"

At the end of April 2021, a new estimate of MTS on the costs of implementing the "Spring Law" became known - 50 billion rubles. According to his own calculations, the telecommunications operator will spend so much money for the period from the second half of 2018 to the end of the first half of 2023. Read more here.

Creation of a company for the production of telecom equipment for import substitution

In mid-April 2021, it became known about the creation of a subsidiary of MTS, which will produce telecommunication equipment for import substitution. We are talking about MTS Electronics LLC, which, judging by the data of the SPARK-Interfax system, was registered in March. Read more here.

Investing $10 million in an American AI chip developer

On March 26, 2021, MTS announced the investment of $10 million in Kneron. Thanks to this deal, which was concluded by MTS Center for Artificial Intelligence (MTS AI), a member of the telecommunications group, this company, among other things, becomes the only distributor of Kneron chips and technologies in Russia. Also, MTS AI will be able to create its own line of AI-ready products using Kneron technologies. Read more here.

The government has chosen MTS IT projects for a special legal regime

In mid-March 2021, it became known about the IT projects of MTS and Yandex, which were chosen by the Government of the Russian Federation to provide them with a special legal regime. Read more here.

Vyacheslav Nikolaev - the new president of MTS

On March 5, 2021, MTS announced the change of head of the company. Aleksei Kornya, who has been the president of the telecom operator since March 2018, is resigning, and Vyacheslav Nikolaev, First Vice President for Customer Experience, Marketing and Ecosystem Development of MTS, will take his place. The official change of leadership will take place on March 13, 2021. Read more here.

Opening stores in conjunction with Xiaomi

At the end of February 2021, MTS and Xiaomi began opening joint stores in which consumer electronics, household appliances, televisions, gadgets and accessories will be sold only by this Chinese manufacturer. Read more here.

Opening a credit line at the New Development Bank for $300 million for the development of infrastructure for communications and cloud services

MTS took a $300 million loan from the New Development Bank (NBR, New Development Bank), founded by the BRICS countries (Russia, Brazil, India, China and South Africa), to develop infrastructure for communication and cloud services. The Russian mobile and fixed-line operator announced this on January 29, 2021.

The credit facility is granted for 7 years and can be used either in US dollars, or in euros, or in Chinese yuan. Borrowed funds will be used to develop mobile infrastructure and install cellular towers in small towns, as well as to deploy cloud service infrastructure.

Using the funds of the targeted loan will help us in the implementation of the program to provide small and remote settlements with mobile Internet and communication, as well as help make digital products even more accessible to the population and for small businesses, - said MTS President Aleksei Kornya.

According to him, the loan agreement with the NBR has become a landmark event in the development of socially important infrastructure projects of MTS. For the bank, this is the first project for the development of digital infrastructure, it represents a new stage in the diversification of NBR operations, said the president of the credit institution Marcos Troijo.

We are committed to the development of high-tech infrastructure in the founding countries of the bank. Expanding the portfolio of unsecured loans, financing multifaceted and large-scale projects are a priority for us, "he said.

Earlier, MTS raised 30 billion from to rubles VTB refinance debt, which expired in 2020. The loan was issued for six years. The bank allocated funds in accordance with an agreement with MTS for a total of 80 billion rubles. ON according to experts, the operator needs additional liquidity, as it will soon pay dividends and it needs a source of financing.^[17]

Investing in Airo Dry Cleaning and Cleaning Order Service

On January 27, 2021, MTS announced the investment of 60 million rubles in Airo. Under the terms of the agreement, the operator's venture capital fund will receive 10% in the startup. Taking this into account, it turns out that Airo is valued at 600 million rubles. Read more here.

2020

Opening a credit line in ВЭБ.РФ for 4.5 billion rubles for the implementation of domestic IT solutions

At the end of December 2020, it became known that MTS had opened a credit line in ВЭБ.РФ.. The telecom operator will use these funds (up to 4.5 billion rubles) to introduce domestic IT solutions.

The state corporation provided the first funds to MTS for the implementation of three projects in the field of "advanced" artificial intelligence and the promotion of digital products of the operator's ecosystem.

MTS received a preferential loan under the Ministry of Digital Development program, under which the agency provides subsidies to creditors to provide borrowed financing at a low rate - from 1% to 5% (the possible amount of lending for the project is up to 5 billion rubles, it is possible to increase to 10 billion when implementing several interconnected projects).

Loans under the Ministry of Digital Development program are issued for the purchase of Russian software and equipment, licenses and patents, employee remuneration, training of specialists and other purposes in the framework of business digitalization.

The credit line signed with ВЭБ.РФ allows us to attract ruble financing with a low interest rate for the entire period of project implementation, "says Andrei Kamensky, Vice President of Finance at MTS. - Such methods of support, organized by the Ministry of Digital Development of Russia, enable business to recoup a significant part of investments in its own digital development on the basis of Russian IT solutions and thereby support the market of domestic developments.

According to the first deputy chairman of the ВЭБ.РФ Nikolai Tsekhomsky, cooperation with MTS within the framework of the mechanism for supporting domestic IT developers created on the initiative of the Ministry of Digital Development is associated with the implementation of the national program "Digital Economy." Support for domestic IT developers changing the situation in existing markets is of fundamental importance for the industry, he said.^[18]

Agreement with Microsoft on the development of the Russian Internet of Things market

On December 17, 2020, Microsoft Corporation announced that it had signed an agreement with the Russian company MTS, a supplier of digital, media and telecommunications services, on the development of the Russian Internet of Things market. This was announced by Dmitry Khalin, Vice President for Cloud and Digital Solutions at MTS, and Kristina Tikhonova, President of Microsoft in Russia. Read more here.

Participation in the creation of the Association "Open Network Technologies"

November 30, 2020 Autonomous non-profit organization for assistance in the development of digital infrastructure "Consortium" Telecommunications Technologies " (ANO TT) reported that together with PJSC Mobile Telesystems (MTS), Kryptonit Research and Production Company JSC and Skolkovsky Institute of Science and Technology, an autonomous non-profit educational organization of higher education (Skoltech) established the Association of Organizations for the Development of Open Network Communication Networks "Open Network Technologies" (Association "Open Network Technologies") with the aim of developing promising technologies in the telecommunications industry based on open international standards. Read more here.

MTS sells NVision Group 28 times cheaper than it bought

On November 2, 2020, MTS announced the planned sale of a 100% stake in NVision Group to its largest shareholder, AFK Sistema. The company sells to Sistema the assets of NVision Group related to the system integration business, with the exception of those that participate in the formation of the MTS product portfolio. The transaction amount will be 401 million rubles, taking into account a possible adjustment, depending on the updated financial indicators at the closing date. Read more here.

MTS received a loan of 15 billion rubles from Sberbank

On October 26, 2020, MTS announced that it had received a loan in the amount of 15 billion rubles from Sberbank. The Russian mobile and fixed-line operator intends to spend these funds for corporate purposes under a revolving credit line opened by the company in Sberbank in May 2018.

MTS also announced the refinancing of the existing Sberbank loan for 70 billion rubles. The transaction involves a decrease in the current interest rate, as well as a change in the loan repayment schedule. Details of the loan agreement concluded between MTS and Sberbank are not disclosed.

MTS is continuously working consistently to optimize the company's current debt. Reducing the interest rate on current instruments, as well as attracting new funding confirms this course and is another step to strengthen mutually beneficial relations between MTS and Sberbank, - said MTS Vice President for Finance Andrei Kamensky, whose words are quoted in a press release.

It is noted that MTS and Sberbank are long-standing partners. Earlier, the cellular operator connected to the Sberbank fast payment system and began to accept money transfers by phone number to the bank's customer cards. In addition, Sberbank customers can use Thank You bonuses to receive a discount on MTS mobile services.^[19]

Purchase of the Kemerovo Internet provider "Rickt" for 360 million rubles

In October 2020, the cost of the transaction for the sale of the Kemerovo provider of broadband access and cable television "Rickt" to MTS became known. The operator of the "Big Three" announced this in its financial documents. Read more here.

Investing 125 million rubles in the financial accounting service

On September 11, 2020, MTS announced the investment of 125 million rubles in CoinKeeper through its corporate venture capital fund. As part of the transaction, the mobile and fixed-line operator became a minority shareholder in the service of personal finance accounting, cost control and savings. Read more here.

Closure of 600 communication salons since the beginning of the year

On August 19, MTS announced the closure of 600 communication salons since the beginning of 2020. The company fulfilled the plan to reduce retail ahead of time - the operator wanted to stop working 600 points of sale throughout 2020. Optimization affected both in-house and franchise stores.

According to Kommersant, citing MTS reports, the temporary closure of part of the communication salons during the pandemic and the diversification of sales channels allowed the company to receive an additional 1.7 billion rubles to operating income before depreciation of fixed assets and intangible assets (OIBDA) in the second quarter of 2020.

As a result of the closure of 600 salons, the MTS retail network decreased by 10% - by August 19, 2020, the company has 5281 points. The operator admits the possibility of closing new trading facilities, but the final decision will depend on the situation on the market.

If the competitive environment allows us, then we will continue to further optimize the network, "said Inessa Galaktionova, First Vice President of MTS for Telecommunications Business.

According to the head of Infoline-Analytics Mikhail Burmistrov, operator retail is unprofitable, and the closure of ineffective points of sale reduces the need for their additional financing, which has a positive effect on the financial performance of operators. Telecommunications companies have already begun to cut their retail, but by August 19, 2020, another 15-20% of salons remain superfluous, he said.

Mobile Research Group analyst Eldar Murtazin notes that the number of operator communication salons is twice the customer demand, which is also declining amid an increase in the lifespan of smartphones. Against this background, the reduction in retail leads to an increase in MTS revenues, even with a slight drop in equipment sales, the expert added.^[20]

Former head of the presidential administration Valentin Yumashev received a share in MTS

On July 8, 2020, it became known that Valentin Yumashev received a stake in MTS. Read more here.

Updated board of directors: Konstantin Ernst entered it

On June 25, 2020, Channel One CEO Konstantin Ernst officially joined the MTS Board of Directors. The operator announced this on its website following the results of the absentee annual general meeting of shareholders.

In Coriant addition to Ernst, the new board members are: the company's chairman and CEO, Shaigan Heradpir, and former vice president of technology Amazon and former vice president of technology at Amazon and supervisory board member X5 Retail Group Nadia Shurabura.

The quantitative composition of the MTS Board of Directors has been preserved, it includes 9 people. Managing partners of AFK Sistema Vsevolod Rozanov and Alexey Katkov, as well as independent director Antonio Teodosiu, left the board of directors.

The board of directors remained the head of MTS Aleksei Kornya, member of the board of directors of AFK Sistema Felix Yevtushenkov, vice president of Sistema for strategy Artyom Zasursky. The positions of independent directors were retained by Regina von Flemming, Thomas Holtrop and Valentin Yumashev.

The press service of the company noted that the inclusion of new candidates on the board of directors contributes to the development of the company's strategy. It is aimed at building an ecosystem of digital services around the client.

According to the representative of MTS, the new members of the Board of Directors have first-class managerial competencies and outstanding experience in creating and bringing successful digital and media products to the market.

Konstantin Ernst became the board member of MTS after the company and Channel One created joint venture for development of the recommendatory system of a media content based on individual preferences of users. Under the terms of the agreement, MTS gets the opportunity to show the content of the channel, and Channel One - tools for measuring and analyzing its^[21]Shareholders^[22]

Purchase of Stopol Auto and Coagent Rus

On June 22, 2020, MTS announced the acquisition of Stopol Auto and Coagent Rus, which became the basis for the new business direction of the telecommunications operator - the development of automotive technologies. Read more here.

The head of MTS explained why Ernst, Galitsky and former vice president of Amazon were nominated to the board of directors

During a conference call of top managers of MTS with analysts at the end of May 2020, dedicated to the results of work for the 1st quarter, the president of the company Aleksei Kornya explained the choice of new persons in the list of candidates for inclusion in the board of directors. The decision to include them was made on May 21, but at that time the company did not comment on the choice of specific persons in the media.

Election to the board of directors of MTS will be held at the annual general meeting of shareholders of the company on June 24, 2020. The new candidates on the list are the head of Channel One Konstantin Ernst, managing partner and co-founder of Almaz Capital Partners Alexander Galitsky, chairman and CEO of Coriant Shaigan Heradpir, as well as a member of the supervisory board of X5 Retail Group and former vice president of technology at Amazon Nadia Shurabura.

From what Aleksei Kornya said during the conference call, it follows that, thus, the board of directors is strengthened to help MTS implement its new strategy, implying an ecosystem approach and growth outside of the traditional telecom business.

Konstantin Ernst in a conversation, the head of MTS called "the leading media guru in Russia." His nomination to the board of directors of Kornya was associated with the fact that earlier in 2020 MTS and Channel One signed an agreement on the creation of a joint venture to form a new media proposal, which involves a "fundamentally new format of media proposal" based on the individual preferences of each user. In light of the fact that companies will develop it together, the inclusion of Ernst on the board of directors looks logical, the head of MTS noted.

As for Nadia Shurabura, she is a very experienced professional in building and developing ecosystems. Due to the fact that MTS faces many ecosystem challenges and questions, Shurabura will help the company correctly answer them and develop, explained Aleksei Kornya. In particular, this is relevant for the business development strategy of MTS data centers, where Nadia Shurabura has a particularly good experience with Amazon, the head of the company emphasized.

In the near future, MTS plans to pay special attention to business development based on data centers. Aleksei Kornya recalled that earlier MTS acquired one of the largest commercial data centers - Avantage. From his words it follows that in 2020 the company will direct special efforts to receive more revenue from the direction of data centers.

Shaigan Heradpir, in turn, is attractive to the company and his experience in telecom, where he gained the experience of Chief information officer at the telecommunications corporation Verizon, and in digital banking. Heradpir served as chief operating officer of Barclays Bank. For MTS, developing and banking business, its experience in this area is also relevant. During a conference call, the company cited data that in the 1 quarter of 2020, the number of users of its banking application for the first time exceeded 1 million people, and year-on-year growth was 70%.

Regarding Alexander Galitsky, the President of MTS stressed that he has extensive experience in various industries and in the field of startups, business construction and development.

Aleksei Kornya noted that in the new proposed composition, the majority of board members are independent directors.

Purchase of the telecom company "Green Point"

On May 22, 2020, the details of the sale of the Green Point to MTS became known. From the annual statements of the Big Four operator, it follows that he paid 1.37 billion rubles for the purchase of a 51% stake in the Cypriot offshore companies Achemar Holdings and Clarkia Holdings, which own operators from the Green Point group. Read more here.

TAdviser interview with Ruslan Ibragimov, Vice President of Government Relations and Public Relations

In March 2020, Ruslan Ibragimov, Vice President for Interaction with State Authorities and Public Relations of MTS, spoke in an interview with TAdviser about the main priorities of activity. Read more here.

MTS and Skoltech launched an artificial intelligence laboratory

On March 2, 2020, MTS announced the launch of an artificial intelligence laboratory at the Skolkovo Institute of Science and Technology (Skoltech). This project aims to create new algorithms for text recognition and understanding, which will allow the telecom operator to improve the quality of products and services, such as virtual assistants. Read more here.

Developing artificial intelligence for medicine

On February 6, 2020, MTS and Samara State Medical University (SamGMU) announced the launch of an artificial intelligence laboratory. First of all, AI technologies for the primary diagnosis of patients and systems for automatic conversion of voice into text for doctors will develop there. Read more here.

Entry of MTS representatives to the Board of Directors of Just AI

On January 23, 2020, Just AI, a developer of conversational artificial intelligence technologies, announced the closure of transactions with strategic partners - Sovcombank PJSC and MTS PJSC. The combined share of investors in Just AI's capital amounted to 22.5% with the company's total market valuation of $40 million. Representatives of MTS and Sovcombank joined the Just AI Board of Directors as observers. Read more Here.

Buying a 15% stake in Swipglobal

On January 22, 2020, it became known about the sale of a 15% stake in Swipglobal (owner of the Smart Wallet company) to the telecommunications operator MTS. The value of the deal has not been named. Read more here.

Start of MGTS brand liquidation

On January 16, 2020, it became known about the completion of the restructuring of the Moscow business in the field of mobile and fixed-line services at MTS, as a result of which it began to develop under a single management. The MGTS brand will gradually disappear, under which MTS provided wired Internet services. Read more here.

Creation of a company to manage MTS Entertainment ticket services

On January 10, 2020, it became known about the creation of MTS Entertainment, within the framework of which MTS merged the management of ticket services Ponominalu and Ticketland, as well as all areas of the operator's business related to events. Read more here.

2019

Revenue growth by 5.5% to 476.1 billion rubles

In 2019, the revenue of the MTS group reached 476.1 billion rubles (taking into account the deconsolidation of the results of the former MTS Ukraine subsidiary), an increase of 5.5% compared to the previous year earlier. On the Russian market, the operator earned 472.6 billion rubles against 448.1 billion rubles in 2018. The company's revenues in Armenia and Belarus decreased by 2.2% to 56.6 billion rubles.

MTS ended 2019 with a net profit of 54.2 billion rubles, which is almost 8 times more than profit in 2018. In Russia, net profit rose by 45.3% to 99 billion rubles.

According to the President of MTS Aleksei Kornya at a conference dedicated to the publication of financial statements, the net profit was influenced by "a steady increase in service consumption," as well as the lack of super-fierce competition in the market.

There are two main factors to this. Last year we had a low base because there was a reserve that we accrued. The second factor is the growth of operating profit and the growth of OIBDA, - Aleksei Kornya told reporters in response to a question about the factors of growth in indicators.

MTS revenue in the Russian mobile services market in 2019 reached 320.1 billion rubles, which is 2.4% higher than revenues a year ago. In the segment of fixed-line services, the company received 60.1 billion rubles (a decrease of 0.5%).

System integration services added about 10.3 billion rubles to MTS revenue in 2019, which is 39.2% more than a year earlier. Group revenues from MTS Bank jumped by 151.8% and amounted to 29.8 billion rubles. Another income item - the sale of goods - provided the operator with annual revenue in the amount of 69.4 billion rubles (an increase of 0.3%).

As of December 31, 2019, MTS had 86.9 million customers, including 79.1 million in Russia. The operator's subscriber base in the Russian market increased by 1.4% compared to the end of 2018.^[23]

Mobile traffic growth by 65% in the Moscow agglomeration

On February 28, 2020, MTS PJSC announced the results of the development of communication infrastructure in Moscow and the Moscow region. In 2019 - as in previous years, the company continued to build and modernize networks at an accelerated pace, providing over 90% of the territory of settlements of the Moscow region and transport highways with high-quality 4G mobile communications at the end of the year.

In 2019, the volume of mobile Internet traffic in the MTS 4G network increased by almost 65% in the Moscow agglomeration, which is comparable to the dynamics of 2018. MTS is one of the leaders in the capital region in terms of the total number of base stations, while 91% of the operator's sites are equipped with LTE base stations.

As a year earlier, in 2019 MTS built more than 3.2 thousand base stations, the vast majority of which operate in the LTE standard. A third of the launched stations were launched in Moscow, the rest in the Moscow region. As a result of the modernization, 4G network coverage outside the Moscow Ring Road exceeded 90%, and in a quarter of settlements in the region it approached 100%.

In 2019, MTS built a fixed transmission network data in five cities of the Moscow region:,, Elektrostal Lyubertsy Dzerzhinsky, and. Kotelniki Taking Pushkino this into account, about constructions 500 thousand households in 58 settlements of the Moscow region have access to high-speed home. In to the Internet addition, the operator organized a public network in the Wi-Fi central park of Elektrostal, provided a Wi-Fi network video surveillances and public stop cameras transport in Zhukovsky and began installing video cameras for access surveillance in. Reutov

Coverage has been improved not only in settlements, but also on highways playing a special role in the Moscow agglomeration: more than one million people come to work from the Moscow region every day, more than 8.5 million use the metro and the MCC every day. In 2019, MTS completed the construction of a 4G network in the tunnels of the Moscow Metro, installed base stations along the Neva M11 highway Moscow - St. Petersburg, as well as on sections of the Central Ring Road, Moscow Central Diameters and other highways. This allowed MTS to provide the LTE network with 90% of the total length of federal and regional roads passing through the Moscow region.

In 2019, the volume of mobile Internet traffic in our 4G network increased by almost 65%, and the demand for it will continue to grow - by 2025 we expect an increase in Internet traffic by four times. Therefore, it is important for us to develop networks ahead of the curve, providing equally comfortable conditions for using the Internet to all customers in the Moscow region wherever they are - in the metro, train or car, in the center of the capital or at the dacha in the far Moscow region. Soon, higher speeds and capacities will be needed in Moscow and the cities of the region, so we are not only modernizing the LTE network, but also actively preparing for the introduction of 5G, building backbone networks and testing modern technologies in pilot zones, noted the commercial director of the Moscow region MTSAleksey Nazarov

MTS launched two permanent 5G test zones at VDNKh in the 28 GHz and 4.9 GHz bands. The first zone demonstrates solutions for Smart City to improve security, develop the transport system and control systems for city services, develop products for the city based on augmented and virtual reality. The second zone has a 5G laboratory for startups developing products in the field of cloud rendering and storage, the Internet of things, remote playback of games, streaming in Ultra HD, VR/AR and 360˚ formats.

1,300 complaints to Roskomnadzor about communication services

On February 12, 2020 Roskomnadzor , he summed up the results of systematic work with citizens' appeals regarding the provision of services communications by the Big Four operators. In 2019, more than 6.4 thousand such appeals were considered, of which 1,300 fell on PJSC "." MTS More. here

MTS entered into an agreement with Sberbank on refinancing a loan for 70 billion rubles

In September 2019, MTS announced the conclusion of loan agreements with Sberbank totaling 120 billion rubles. As part of these agreements, the telecommunications company agreed to refinance the existing Sberbank loan for 70 billion rubles, as well as to open a credit line for 50 billion rubles, under which MTS was able to choose funds in separate tranches to pay off the debt.

MTS put on stream multibillion-dollar investments in the digital economy of the regions

In September 2019, MTS expanded the list of regions in which it plans to invest funds for the development of digital projects. The company signed cooperation agreements with the Khabarovsk Territory, in digitalization of which it plans to invest more than 1.4 billion rubles, Buryatia (1 billion rubles), Lipetsk region (900 million rubles), Yakutia (500 million rubles). Investments are designed for the period until the end of 2021.

In the Khabarovsk Territory, in particular, when developing regional and municipal digital projects, it is planned to use cloud services, Big Data technologies, artificial intelligence, cybersecurity, solutions in the field of fintech, mobile applications. One of the elements of the implementation of the agreement will be the creation and testing of Internet of Things (IoT) projects in the region, including on the MTS NB-IoT innovation network operating in the Khabarovsk Territory since April 2019.

In Buryatia, MTS invests in a number of projects, including the digitalization of the system for collecting and processing household waste, the introduction of geoanalytics for processing data on tourist flow in the region, the development of digital services and financial services for the population, as well as the launch of test zones within the framework of the federal program "Smart City."

With the government of Yakutia, in turn, MTS plans to create pilot Smart City zones with smart solutions in the field of housing and communal services, road construction and logistics, develop medical digital services, including in remote settlements, introduce projects that increase the safety of the urban environment and the efficiency of using the resources of the regional economy.

In the Lipetsk region, the priority area of ​ ​ cooperation will be the development of technologies for the digitalization of the region's economy and its social sphere, including the launch of test zones and the introduction of elements of a "smart city." The parties also plan cooperation in the field of digitalization of the process of collecting household waste in the region, projects using geoanalytics and Big Data capabilities to develop the tourism potential of the region, projects to ensure the security of enterprises, the development of digital services and financial services for residents of the region.

Together with these regions, the total volume of investment plans announced by MTS in 2018-2019. in relation to digital economy projects in the regions, amounts to more than 45 billion rubles. In 2018, the operator concluded cooperation agreements with the administrations of five regions, within the framework of which it plans to invest 9.7 billion rubles in the development of digital economy projects in the Voronezh, Rostov and Novosibirsk regions, Primorsky Territory and the Republic of Ingushetia by 2020. In April 2018, an agreement was signed with the administration of St. Petersburg on strategic partnership, where the priority area of ​ ​ cooperation is the development of technologies related to the digitalization of urban infrastructure. In the next two years, MTS plans to invest about 4 billion rubles in the development of the region. An agreement providing for investments of 1 billion rubles was also signed with the Orenburg region in 2018.

In 2019, MTS entered into agreements with the administrations of Moscow, Tatarstan, Kaluga, Ryazan and Samara regions on cooperation in the development of digital projects totaling 24 billion rubles. The bulk of these funds should come to Moscow - 21 billion rubles. At the beginning of 2019, an agreement was concluded with the Leningrad Region, where MTS plans to invest more than 4 billion rubles in digital development.

MTS preferred not to comment on TAdviser models of public-private partnership, which they plan to apply in the regions as part of the implementation of these investment plans. The operator referred to the fact that this is a competitive market, and the company would not want to disclose all the details publicly yet.

At the beginning of 2019, Valery Shorzhin, Vice President for Digital Business Solutions at MTS, told^[24]that in the field of digital economy projects, the company focuses on business projects and various types of public-private partnerships, for example, related to energy service contracts for smart lighting, smart transport, smart housing and communal services - all Smart City systems.

We are comfortable seeing ourselves, including in the role of concessionaires, when we first invest and then get a return. Such an investment model is very close to telecom, because operators are used to the fact that you need to first build an infrastructure, and then make money on it, "Shorzhin noted.

Speaking about the directions of their regional investments in general, MTS notes that they go mainly to infrastructure: data transmission networks, narrowband Internet of Things (NB-IoT) networks, and part of the funds - to platforms for using elements of a smart city. NB-IoT networks are one of the key elements of smart city projects. In 2018, according to the operator's annual report, MTS built Russia's first federal network NB-IoT for the Internet of Things, providing continuous coverage in all million-plus cities and in a number of large cities in Russia, and also provided services for working with smart devices.

The operator also has capabilities related to Big Data analysis. Over the past three years, the company has turned the classic analytical repository of a telecom company into a data lake IT company with many metrics and knowledge about users. This is a huge layer of data, including geolocation - the operator knows about the movements of people, how, for example, tourist flows are distributed, what pendulum migration looks like, where and at what time a large number of people are concentrated. According to MTS, such data are already used to plan the development of transport infrastructure, tourist facilities, urban security systems in Moscow.

Participating in frequency clearing for 5G

The Big Four of Russian mobile operators will clear frequencies for the development of fifth-generation (5G) networks in Russia. About this to journalists on the sidelines of the Eastern Economic Forum (WEF; September 4-6, 2019) said Rostelecom President Mikhail Oseevsky. Read more here.

Purchase of the Kinopolis film production complex

On August 28, 2019, it became known about the sale of the Kinopolis film production complex to a telecommunications operator. MTS The latter bought a film studio from another "daughter" - AFK Sistema the company "Business Real Estate." More. here

Buying a platform developer to accelerate the launch of Container IT solutions

At the end of August 2019, MTS announced the acquisition of Containerum, a startup from its own MTS StartUp Hub accelerator. The financial terms of the transaction were not disclosed. The operator transferred the rights to the Containerum platform and the team of the purchased company. Read more here.

FAS: rise in prices for SMS mailings up to 120%

On August 21, 2019, it became known that the Moscow Arbitration Court satisfied Megafon's claim against the Federal Antimonopoly Service (FAS). The lawsuit was filed in connection with the decision of the FAS of May 2019, in which the company was recognized as a violator of antimonopoly legislation in terms of increasing the cost of SMS mailings and establishing unequal conditions for state and non-state banks. According to the materials of the FAS in the case of increasing the cost of SMS-mailings by the four federal telecom operators, the largest increase in prices occurred at Megafon - up to 500%. In VimpelCom, the cost increased to 200%, in MTS - to 120% and in Tele2 - to 80%. Read more here.

Closing of 300 communication salons

On August 20, 2019, MTS announced its intention to close up to 300 salons by the end of December. Thus, the operator's retail network will be reduced by 5%.

According to RNS, citing MTS Vice President for Telecommunications Business Inessa Galaktionova, by August 2019 the company has 5880 salons.

MTS sees opportunities for reduction, because it "feels quite comfortable with sales." In particular, MTS had such a feeling thanks to a partnership with Svyaznoy, she noted. Galaktionova also added that MTS is preparing a project to modernize salons.

Earlier in the summer of 2019, it became known that MTS is resuming sales of its SIM cards in the retail of Svyaznoy and Euroset. They were discontinued in 2015 after a conflict of partners.^[25]

MTS expects that competitors will follow the company's example in terms of reducing retail.

Usually, other players in the market take such actions behind the leader. We see all the prerequisites for all players in the market to optimize the retail format and the number of points and think that the industry will go in this direction. We have all the tools in our hands, and we see the prerequisites for optimizing the number of retail points for all market players, - said Inessa Galaktionova.

The President of MTS Aleksei Kornya spoke about the upcoming reduction in retail at the end of July 2019. Then he noted that all operators of the "Big Three" have an excessive number of communication salons. Kornya explained the need to reduce the number of retail outlets by three reasons:

• Increasing the life of old phones;
• Increasing demand for the purchase of devices on the Internet;
• The departure of consumers from street retail to shopping centers.

MTS promises to report quarterly on the reduction in the number of monobrand stores.

Approval of updated PID group organizational structure

As it became known on July 31, 2019, the Board of Directors of MTS PJSC approved the updated organizational structure of the group. Vice President for Technology Andrei Ushatsky, Director of the Center for Artificial Intelligence Arkady Sandler, Director of the Big Data Center Leonid Tkachenko and Director of Business Ethics and Compliance Yulia Romashkina will now report directly to MTS President Aleksei Kornya. Thus, the company wants to allocate innovative teams to separate structural divisions in order to launch an ecosystem of digital products.

Teams of AI and big data business areas will be able to quickly make decisions and quickly bring new products to the market.

The allocation of innovative teams to individual divisions at the top management level and the creation of functional business areas are necessary to launch an ecosystem of digital products. We delegate significant powers to them, decision-making, thereby making it possible to quickly respond to market challenges, "commented MTS President Aleksei Kornya on the changes in the company.

In addition to the group structure, MTS will also change the composition of the board. From August 1, it should include: Vice President for Financial Services Ilya Filatov and Vice President for Information Technology Dmitry Khomchenko. Vice President of Digital Home Solutions Kirill Dmitriyev and Andrey Ushatsky left the board. MTS did not explain the reasons for the changes in the composition of the board.

Updated their board membership with First Vice President of Telecommunications Business, Inessa Galaktionova Vice President of Human Resources, Maria Golyandrina Vice President of Strategy and Development, Alexander Gorbunov Vice President of state Government and Public Relations, Vice Ruslan Ibragimov President of Finance, Andrei Kamensky First Vice President of Customer Experience and Marketing Vyacheslav Nikolaev , and Vice President of Digital cloudy and Solutions. Valery Shorzhin

Vice President and General Director of MTS Media (TV services) will be appointed in the near future.

MTS is transforming from a classic telecom operator into an ecosystem of digital products. It is important to continue evolutionary development and create a multidisciplinary integrator of modern services and solutions through the synergy of basic technologies and innovative developments, "said Felix Yevtushenkov, Chairman of the Board of Directors of MTS.[26]

MTS Brand Update

On June 24, 2019, MTS, Russian telecommunication the operator and provider of digital services, presented an updated brand positioning, slogan and visual style. The brand change reflects the company's strategy to transform and build digital products in new markets.

Updating the visual style and slogan is a natural process on the way to the growth and development of the company, "said Vyacheslav Nikolaev, MTS Vice President for Marketing. - MTS strategy involves concentration around new digital products. Visual style follows this concept through the creation of an umbrella brand incorporating new product business lines beyond telecom boundaries that will be reflected in the brand's writing.

In addition to traditional telecom services, MTS's portfolio includes fintech products based on its own bank; entertainment applications, including services for buying tickets for concert and theater performances; MTS Home direction, which combined Smart Home technologies; multi-platform TV, including access to hundreds of TV channels through cable, satellite and mobile TV; own e-sports streaming platform; MTS Telemedicine Platform Telemedicine Project SmartMed; online education app Smart Education; Digital B2B, which combined cloud products, the federal Internet of Things network, services based on artificial intelligence and Big Data.

In a visual style, MTS will get rid of the now irrelevant concept of craft (a red strip stylized as a brush stroke), focusing on more dynamic formats that reflect the orientation towards the digital component of the company's business. The central element of branding is a red stripe that grows out of the typography of the new MTS logo.

According to company representatives, the positioning change is based on the results of more than four global and over 20 point studies of lifestyle, customer needs, visual style tests for various segments. The updated positioning and visual style were created with the support of two agencies: ASVK Consulting Ltd from the UK and BBDO Branding from Russia.

Second place among the Big Four operators in terms of the total number of LTE BSs

On June 20, 2019, it became known that T2 Mobile LLC (brand) Tele2 increased the number of base stations (BS) of the standard LTE from the beginning of the year by a quarter - to 65,056 RES. Now Tele2 lags behind PJSC by MTS 2.9 thousand. LTE BS. At the same time, MTS's number of LTE base stations at the beginning of June decreased by 136 compared to the indicator of the beginning of May. More. here

FAS recognized VimpelCom, MTS and Tele2 as violators of antimonopoly legislation

On May 15, 2019, it became known that the Federal Antimonopoly Service (FAS) recognized mobile operators Mobile Telesystems (MTS), VimpelCom and T2 Mobile as violators of the Law on Protection of Competition. We are talking about the establishment of discriminatory conditions when forming tariffs for SMS mailings for state and commercial organizations that put consumers in an unequal position. Read more here.

Startup Attraction and Transfer Network

MTS PJSC launched in the spring of 2019 a program to create a partner network for attracting and transferring startups in the main innovative centers of the world. The operator will open the first partner networks in three innovative hubs - Israel, Germany and Singapore. In each of the regions, MTS will be represented by a team of technology scouts who will search for startups for MTS business and interact with local incubators and development institutions. Experts positively assess the MTS initiative and explain it by the fact that working only in the local market will not allow creating breakthrough solutions, and the best projects are born as a result of global cooperation.

MTS expects that international scouting will allow more effective monitoring of world innovative ecosystems and attract foreign startups for the implementation of pilots, as well as open up new opportunities for the best Russian startups with the operator's shared participation in foreign markets. In the future, foreign startups will be able to scale their business, becoming long-term partners of MTS.

"For more than a year, MTS has been actively working with the Russian open innovation market, integrating products into the company's business. We want to scale this experience, going beyond the local market, attracting to MTS the best world practices and business models that can be adapted to the Russian market. Thus, MTS will be able to offer advanced solutions for our customers and subscribers, - Dmitry Kurin, head of MTS StartUp Hub, commented on the event. - The regions of presence are not chosen by chance - today they are a link between Asia, Europe and the East. In the future, we also see interest in the American market. "

Creation of the largest voice database in Russian

April 16, 2019 MTS announced the beginning of the creation of the largest voice database in Russian. The operator intends to collect and place more than 15 thousand hours of Russian speech with the involvement of personnel and technical resources. Skolkovo

MTS will use the collected data to create its own voice interfaces, as well as provide them to other companies, primarily Skolkovo residents.

MTS and the Skolkovo Foundation signed an agreement on the creation of a research center for the development of solutions based on speech technologies, such as virtual assistants, chat bots and voice assistants.

MTS plans to place equipment and workplaces of experts of the center being created on the territory of the Skolkovo technopark. MTS will also attract residents of the innovation center to record Russian speech and then translate the collected audio materials into text. MTS specialists, together with experts from partner universities, will develop uniform standards for structuring and verifying data and mark up the collected information.

Based on the collected data, MTS will develop its own solutions in the field of conversational interfaces, as well as create thematic sets for providing them to the external market.

The total amount of MTS investments in the creation and operation of the center in 2019-2020 is estimated at approximately 150 million rubles. After creating a voice database, the Skolkovo Foundation, within the framework of existing grant programs, will support residents in gaining access to the collected data sets.

Earlier, MTS created a division for the introduction of solutions based on artificial intelligence. It complements carrier services with new functions based on natural language processing technologies, including voice recognition and computer vision, and creates products in the field of client service, medicine, law, etc.^[27]

Launch of a corporate venture capital fund to support technical start-ups

On Russian telecommunication April 16, 2019, MTS, an operator and provider of digital services, announced TAdviser the launch of its own corporate venture capital fund for the development and support of promising technology startups. This decision has already been approved by the MTS Board of Directors. The fund will operate on the basis of the corporate accelerator MTS StartUp Hub.

According to the company, early startups with prospects for rapid growth and synergy with new MTS business areas can count on the support of the fund. At the same time, both projects that have been successfully piloted in the MTS StartUp Hub and external startups will be able to apply for MTS venture investments. The investment will be carried out by acquiring a minority stake in such projects. Startups from Russia and the CIS countries are of interest to the fund.

The creation of a corporate venture capital fund is a logical step in the development of the MTS innovation ecosystem. Venture investments will become one of the key tools for expanding the portfolio of MTS products and services, as well as increasing the revenue of existing areas, "commented Vladimir Khrenkov, director of the MTS Innovation Center. - In the development of directions outside the traditional telecom market for MTS, we go both through our own product development and through the acquisition of promising companies or participation in their share capital. The venture capital fund will allow you to do not only joint product pilots within the accelerator, but also invest the best Russian startup teams, providing them with venture capital for faster development.

As he added, MTS also plans to bring startups to the international market - for this purpose, the company develops a partner network in the main innovative countries of the world and opens its own representative offices there. In general, according to Vladimir Khrenkov, the creation of a venture capital fund will open up wider opportunities for companies to invest in early-stage startups.

To simplify internal procedures and speed up decision-making, MTS will also form a venture committee, which will include four participants. Its composition is planned to be approved later.

Revenue growth from the integrator business by 32%

Revenue MTS from the direction of system integration in 2018 increased by 32.7%, to 7.4 billion, the rubles company told TAdviser. The President of MTS Aleksei Kornya , in a conference call dedicated to the results of the 4th quarter of 2018, noted that by the end of the year the company received record revenue, and the main drivers of its growth were areas outside the traditional operator business. He designated system integration among them.

The direction of system integration in MTS is mainly represented by a subsidiary of NVision Group. However, their revenue from this direction of MTS and the revenue of NVision Group are considered separately. This is due to the fact that, for example, MTS provides part of the services in this area to corporate clients without the participation of NVision Group, and the latter generates a noticeable share of its turnover from the supply of licenses, which in the reporting of the parent company are not formally related to "integrator activities."

MTS cited TAdviser data that the revenue of NVision Group in 2018 amounted to about 14 billion rubles with VAT, an increase of 37.3%. Thus, the positive dynamics was in both cases.

The company told TAdviser that the revenue drivers were new projects and tekhnicheskoy̆ support services. Among the projects, the most noticeable were: installing Wi-Fi in the stadiums of Russian cities for the World Cup, contracts for the introduction of the Microsoft Azure Stack hybrid cloud to corporate customers, as well as IT services, where IT outsourcing is most in demand.

Notable projects were also the supply of software, primarily Microsoft, and equipment from leading vendors for IoT-based solutions in industry, as well as projects in the field of information security.

The key industries for the company in the field of integration services remained: telecom, the financial sector and industry. The contracts of NVision Group with several major domestic retailers, concluded in 2018, also brought retail to the revenue drivers, they say in MTS.

MTS and AFK Sistema are still among the key customers of the company. In the reporting period, cooperation with Sberbank continued, TAdviser told about the record purchase of licenses for the domestic financial sector Microsoft a year earlier.

In the industrial sector, the United Metallurgical Company was noted among the new customers in MTS. For "NVision Group", in particular, the cooperation with Kirov Plant in automation of production activity and increase in efficiency of industrial production starting in 2018 by means of innovative IT became sign.

Increase of interest in MTS Bank to 95%

Russian telecommunication On February 12, 2019, the operator and provider of digital services MTS announced the purchase through its 100% subsidiary Mobile TeleSystems B.V. 39.48% of the shares of MTS-Bank PJSC "" for 11.4 billion rubles from PJSC, AFK Sistema a public Russian diversified holding company, the largest shareholder of MTS and its subsidiaries. More. here

2018

Buying cloud business "IT-Grada" for 2.5 billion rubles

On January 9, 2019, MTS announced the purchase of IT-grad 1 cloud for 2.49 billion rubles, taking into account the net debt of the cloud provider. The transaction is executed through the subsidiary structure of MTS - Vostok Mobile B.V. More details here.

Entering the IT outsourcing market

On August 6, 2018, MTS announced its entry into the IT outsourcing market. The operator will use the expertise of the subsidiary system integrator NVision Group and a staff of more than 5 thousand. IT professionals across the country.

MTS begins to provide corporate clients with services such as system integration, maintenance of network infrastructure and IT systems, management of business applications and other internal services of corporate clients. Customers will be able to rent capacities from MTS, transfer their capacities to the clouds or transfer infrastructure to it for maintenance. Envision Group is responsible for technical support of solutions.

According to MTS, the company guarantees the service level through a service level agreement (SLA). The duration of the contract can be from one to five years.

One of the key areas of comprehensive IT outsourcing and the main driver of the industry is cloud technologies. MTS is ready to offer customers services and solutions unprecedented in terms of reliability and security based on a distributed network of data centers, - said MTS Vice President for Sales and Kirill Dmitriyev Services.

According to him, the merger of MTS and NVision Group, technological infrastructure, human resources and experience allow the operator to build optimistic forecasts in the IT outsourcing market. The company expects to occupy up to 10% of the Russian IT outsourcing market by 2022. According to IDC analysts, sales of IT services in Russia in 2017 reached $5.16 billion.

MTS notes that thanks to the transition to IT outsourcing, business reduces administrative and management costs for IT by reducing the number of full-time employees associated with IT and optimizing capital costs - getting rid of unnecessary office space, furniture and equipment.

OnDoc Telemedicine Service Sales

In June 2018, it became known about the sale of medical services OnDoc by MTS. The mobile operator decided to distribute the packages of telemedicine services "Doctors Online," which will be available in 400 offices of MTS and the company's mobile salons "Телефон.ру" in the North-Western Federal District (NWFO). Read more here.

Aleksei Kornya appointed President of MTS

On March 1, 2018, by a decision of the Board of Directors MTS Aleksei Kornya , he was appointed president of the Russian telecommunications operator and digital service provider MTS for a period of three years. In this post, he replaced, Andrey Dubovskova who, of his own free will, prematurely terminated the duties of president and chairman of the company's board. More. here

Acquisition of Ticketland and Пономиналу.ру

On February 12, 2018, MTS announced the acquisition of two Russian ticket operators in the cultural and entertainment events market: 100% in MDTZK LLC (Ticketland.ru brand) and 78.2% share in Cubichall - 100% owner of Cultural Service LLC (Пономиналу.ру brand). It is expected that the deals aimed at business diversification will allow MTS to strengthen its position in the promising market for ticket sales to theaters, concerts, musicals and festivals, as well as offer subscribers a service for buying electronic tickets with its integration into the loyalty program and the MTS mobile application ecosystem.

The redemption of a 100% stake in MDTZK ("Moscow Directorate of Theater, Concert and Sports and Entertainment Ticket Offices") cost the operator 3.25 billion rubles. The seller was a company owned by a number of investors, including Sergei Solonin and the ITech Capital fund.

In turn, the amount of the transaction for the acquisition of a 78.2% stake in Cubichall, the only participant in Cultural Service LLC, amounted to 387 million rubles (based on the business estimate of this company at 495 million rubles). The sellers were the structures of the founders of this business, Yuri Sosnitsky and Vincent Korsunsky, as well as the Buran Venture Capital fund.

Transaction prices are shown taking into account net debt. One of the founders and head of Cultural Service LLC Mikhail Minin has an indirect share of 21.8% of Cubichall. The parties entered into an option agreement, which implies by the end of 2020 bringing the share of the MTS group to 100% of Cubichall's capital based on the results of the company's activities.

By acquiring assets that control a quarter of the sales of theater and concert tickets in Russia, we enter a steadily growing market with the prospect of becoming a leading player on it. In addition to consolidating the business and opportunities to increase ticket sales among MTS subscribers through the integration of our services and Big Data expertise, we also receive additional tools for marketing activities, interaction with customers and partners. MTS supplies its customers with digital content in various formats, and in the near future will offer them tickets for "live" events with discounts - performances and concerts within the framework of our loyalty program. Soon subscribers will be able to buy tickets directly from mobile devices and receive personal recommendations to visit certain interesting places and events, - commented on the events vice-president of MTS marketing Vyacheslav Nikolaev.

After transactions, ticket operators will continue to operate as independent organizations, operational management will remain with the current management, while MTS will participate in strategic asset management through boards of directors and exercise financial control over the activities of companies.

The financial results of MDTZK and the Cultural Service are included in the consolidated statements of the MTS Group from the date of their acquisition.

2017

Acquisition of a stake in the developer of software for online cash registers

In October 2017 MTS , it acquired 50.82% in the capital of the Russian developer software for retail trade LLC "" Cloudy retail(brand). LiteBox The transaction amount amounted to 620 million rubles. More. here

Purchase of Sotel operator

In July, MTS announced the acquisition of a 100% stake in the regional telecom operator Cellular Communications of Bashkortostan from Bashinformsvyaz, a subsidiary of Rostelecom, for 300 million rubles, including net debt.^[28] As expected in MTS, the purchase of the asset will expand its presence in Bashkortostan and receive an additional frequency resource, including two bands of 15 MHz in the 2100 MHz range, as well as two bands of 4.4 MHz in the 450 MHz range. You can read more about the event here.

31.171 billion rubles of dividends

In April 2017, the MTS Board of Directors recommended that the Annual General Meeting of Shareholders approve the payment of dividends for the full year 2016 in the amount of 15.6 rubles per ordinary registered share with a nominal value of 0.1 rubles each (31.2 rubles per ADR). If this decision is made by the shareholders meeting, MTS may pay up to 31.171 billion rubles at the end of 2016.

In 2016, following the results of the full year 2015, the company paid dividends in the amount of 14.01 rubles per ordinary registered share (28.02 rubles per ADR) or a total of 28 billion rubles.

2016

Sale of stake in Uzbek operator UMC

On August 8, 2016, MTS PJSC sold its stake in UMC in the amount of 50.01 percent to the Uzbek side.

500 million for infrastructure for corporate clients

Operator Mobile Telesystems (MTS) in 2016 increased the number of projects of its corporate clients by 20%, in which the operator at its own expense builds the necessary telecommunication infrastructure^[29]

As part of such projects, the operator creates an infrastructure for the corporate client with the necessary parameters for speed, quality, coverage, security and bandwidth. Projects are being implemented using femtocells (miniature base stations installed indoors), repeaters, full-format and mini-base stations and fiber-optic communication channels.

The total number of such MTS projects amounted to 2 thousand. The volume of relevant investments of MTS in 2016 reached 500 million rubles.

Including the number of base stations installed by MTS specifically for their specific corporate clients increased by 30%. The number of repeaters and femtocells is about twice.

As a rule, more than half of the projects in which MTS takes on the costs of creating infrastructure fall on small regional cities or remote territories, where the customer is often the only or main consumer of telecom services.

In particular, these may be new industrial industries, logistics centers, shopping complexes, new residential premises that are being built in an "open field," where there was previously no economic feasibility in the construction of communication infrastructure.

MTS explained that the growth in 2016 in the number of corporate client projects in which the operator pays for the construction of infrastructure is associated with a change in the criteria under which the company is ready to shoulder the costs of creating a network at the request of the customer. If we are talking about systems integration projects or the implementation of significant projects to automate business processes through complex MTS solutions, then the company is ready to invest and build a network "for the client."

AFK Sistema sold MTS shares, reducing its stake to 50.03%

Sistema Finance S.A., a subsidiary of Sistema Corporation, sold 6.2 million US depositary shares of MTS to an unaffiliated buyer, which make up 0.63% of the operator's authorized capital. The amount of the contract amounted to $55.359 million minus the commission, according to the AFK website.

As a result of the transaction, the effective share of AFK Sistema in the authorized capital of MTS decreased to 50.03%.

"During 2016, we implemented a number of successful transactions to monetize MTS shares in accordance with our strategy to diversify the Corporation's investment portfolio. Remaining the leader of the Russian telecommunications market, MTS also provides high profitability for its shareholders, and AFK Sistema plans to remain the controlling owner of the company, "said AFK President Mikhail Shamolin.

According to him, the deal will provide the corporation with additional resources and will allow continuing investments in new promising projects on the Russian market.

2015

MTS presented claims to Svyaznoy for 800 million rubles

On October 2, 2015, MTS announced the presentation of claims to Svyaznoy Logistics in the amount of about 800 million rubles^[30]

The sanctions were initiated based on the results of the audit of the company's work in terms of connecting subscribers MTS in the network of salons. "Coherent" MTS it is also necessary to further assess the consequences of the losses incurred, which may be the subject of additional lawsuits against, the "Svyaznoy" company said in a press release.

MTS received the status of a trusted operator of EDO FTS

MTS entered the electronic document management (EDO) market in 2013 by launching its own Certification Center and selling electronic signatures on USB tokens to corporate customers. In December 2015, MTS received the status of a trusted EDO operator of the Federal Tax Service, expanding the range of services in the field of electronic document management for B2B clients. MTS is preparing to submit an electronic signature on a SIM card to a mass consumer.

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2014

MTS attracted a credit line of Sberbank for 50 billion rubles

In September 2014, MTS attracted a credit line of Sberbank for 50 billion rubles to refinance repayments on the company's debt and provide a reserve of liquidity for the construction of the network.

Revenue growth by 3.1% to 410.8 billion rubles

The consolidated revenue of the Group MTS for 2014, denominated in Russian, rubles increased by 3.1% to 410.8 billion compared rubles to the same indicator in 2013, due to an increase in revenues from voice and data services and an increase in the number of subscribers in. Russia

MTS Group's adjusted OIBDA grew by 0.3% to RUB 175.5 billion in 2014 compared to 2013. Adjusted OIBDA margin decreased by 1.2 percentage points to 42.7% in 2014.

Consolidated net profit in 2014 decreased by 35.1% to 51.8 billion rubles. Free cash flow from continuing operations in 2014 decreased by 22.6% over the year to 57.0 billion rubles due to an increase in capital expenditures due to prepayment to vendors for the supply of equipment in order to offset fluctuations in exchange rates, as well as the purchase of assets in the Russian Federation.

In Russia, the main market of MTS Group, revenue for 2014 increased by 5.6% to 374.9 billion rubles compared to 2013, or by 4.1% in the fourth quarter on an annualized basis. OIBDA increased over the year by 4.5% to RUB 164.8 billion, or 0.5% year-on-year in the fourth quarter. The profitability of MTS business in Russia in 2014 was 44.0% and 42.1% in the fourth quarter.

Revenue from mobile business in Russia excluding sales of phones and equipment in 2014 increased to RUB 291 billion, up 7% year-on-year from 2013 or 4.5% year-on-year in the fourth quarter of 2014.

Revenue from data services in Russia in 2014 compared to 2013 increased by 36% to 64.4 billion rubles. Data services revenue grew 27.2% in the fourth quarter of 2014 compared to the fourth quarter of 2013.

MTS returns business in Uzbekistan

In July 2014, MTS announced the conclusion of an amicable agreement with the Uzbek authorities, which should put an end to the conflict that began between them in 2012. Under this agreement, a new cellular operator will be created in Uzbekistan, 50.01% of which will be owned by MTS, the remaining 49.99% -^[31] the State Committee for Communications, Informatization and Telecommunications Services^[31].

The authorities pledged to transfer to the new operator licenses for the provision of services in GSM, 3G and LTE standards, as well as the corresponding frequencies, number capacity and the possibility of renting backbone communication channels. In addition, the new operator will receive all the property of Uzdunrobit, the former "daughter" of MTS, because of which the conflict broke out. In exchange, MTS will withdraw a lawsuit against Uzbekistan filed with the International Arbitration at the World Bank.

Now MTS is safely emerging from the third unsuccessful history in Central Asia. In 2010, MTS was expelled from Turkmenistan, but in 2012 it agreed with the authorities of the republic on its return, promising in return to deduct 30% of the net profit of the Turkmen subsidiary.

In 2005, MTS acquired the largest cellular operator in Kyrgyzstan, Bitel. But a few days later his office was seized, and the company's property was transferred to the newly created operator Sky Mobile, which was acquired first by Alfa Group and then by VimpelCom. In 2013, Alfa Group and VimpelCom paid MTS compensation for the loss of this asset in the amount of $150 million.

2013

On an annualized basis, MTS consolidated revenue grew by 5% to 398.4 billion rubles. The consolidated OIBDA increased by 8% to RUB 175.0 billion. OIBDA increased by 1.1 pp to 43.9% in 2013. Consolidated net profit amounted to 169% to 79.8 billion rubles. Free cash flow from continuing operations for 2013 increased on an annualized basis by 52% to RUB 68.9 billion. In 2014, the group expects revenue growth of 3-5%. By the end of the year, the operator will launch an LTE network in Russia in the 1800 MHz band.

In January, MTS completed the modernization of the fiber optic between Moscow and St. Petersburg with a length of more than 1000 km.

In March, MTS introduced a new intelligent billing management platform, installing the Medio SCP software and hardware complex worth about 600 million rubles.

In March, MTS launched the Mobile Ticket service to pay for travel in public transport in Novosibirsk from a mobile phone using NFC technology.

Purchase of 25% of MTS Bank shares

In April, MTS completed the acquisition of 25.095% of the outstanding shares MTS Bank in the amount of 5.09 billion rubles in accordance with the terms of the indicative offer signed in October 2012 with MTS Bank and. AFK Sistema

In April, MTS approved a new medium-term dividend policy of MTS, providing for linking payments to the company's free cash flow, which provides for an average increase in dividend payments in 2013-2015 by 30%.

Launch the SaaS app store

In May 2013, MTS announced the launch of a cloud application store for corporate customers, located at cloud.mts.ru. At the time of opening, the services "1C: Enterprise Online," "1C: Small Business Management 8," "1C: Trade Management 8," the Garant system, as well as the Spontaneous application for data exchange and the organization of voice and video communication are available in it. Details.

In May, MTS launched a SMART tariff line with charging only for data transmission and free calls.

In May, MTS completed a project to refarm 900 MHz frequencies, launching third-generation UMTS-900 networks in all areas of the Moscow region.

In May, the MTS brand entered the rating of one hundred leading global BRANDZ™ brands for the sixth time, formed by the leading international research agency Millward Brown Optimor. Brand value rose 11.2% over the year to $10.63 billion.

In May, MTS expanded the fourth generation network in Moscow, launching, in addition to the existing LTE TDD network, the first section of the network in the FDD standard.

In June, MTS signed agreements with Ericsson and Nokia Siemens Networks on the joint development of telecommunications infrastructure and cooperation in the construction of 4G networks in the regions of Russia.

In June, MTS reached an agreement with Altimo, Nomihold Securities Inc. and other related parties to settle all disputes related to investments in OSo Bitel in Kyrgyzstan.

In August 2013, Nokia Solutions and Networks signed a contract with MTS for the supply of base stations and equipment for the modernization and expansion of cellular networks of MTS subsidiaries in Ukraine and Turkmenistan.

2012

The company's net cash flow for 2012 amounted to $1.284 billion, which is 25% higher than the same indicator for 2011. Operating cash flow increased by 10% over the same period and amounted to $4.237 billion. The net debt/LTM ratio of adjusted OIBDA in 2012 was 1.3.

OIBDA for the full year 2012 increased by 11% to RUB 148 bln compared to 2011. The profitability of MTS business in Russia increased by 1.2 pp to 43.8% in the full year 2012.

In January, MTS launched into commercial operation in the Moscow region the first 3G network in Russia in the 900 MHz band in addition to the already deployed third-generation networks at a frequency of 2100 MHz to more fully cover the territory of Moscow and the capital region with high-quality mobile Internet access services.

In March, MTS won the prestigious HR-brand 2011 HR Management Award, which awards the best employers in Russia at the end of the year. The highest award of the award was taken by the MTS project "On the crest of innovation" to realize the creative potential of employees, applicants and clients of the company to improve the business of MTS and the telecom industry as a whole.

In April, MTS launched a test operation of the fourth generation TDD LTE network in the central administrative district of Moscow.

Getting into the top 100 global brands

In May 2012, the MTS brand, the only Russian brand that for the fifth year in a row was included in the annual ranking of one hundred leading global brands BRANDZ, published by the international research agency Millward Brown Optimor, became the most expensive telecommunications brand in Russia with a value of $9.55 billion. For the second year in a row, only two Russian companies fell into the BRANDZ rating - MTS OJSC and Sberbank of Russia OJSC.

In 2008, when MTS became the first Russian company in the history of the rating to be included in the list of the hundred most valuable world brands, its brand was estimated at $8.1 billion. Brand value in the BRANDZ ranking takes into account the company's forward-looking revenues that the brand generates and its current market positions determined from consumer opinion research. The compilers of the rankings examine more than 50,000 brands and survey more than a million consumers around the world.

In May, MTS, together with MasterCard and MTS Bank, presented the first solution in Russia based on NFC technology, which allows a MTS subscriber to pay for purchases and services with one touch using a bank card emulated on a SIM card, simply by attaching the phone to an NFC reader at the checkout.

Purchase of the telecom operator "Tascom"

In May 2012, MTS, through its subsidiary MGTS, acquired CJSC Tascom, a Moscow fixed-line operator, one of the market leaders in providing telecom services for government agencies and corporate clients.

Launch of digital broadcasting in 150 cities of Russia

In July, MTS launched digital television broadcasting in 150 Russian cities, which made it possible to increase the number of TV channels in MTS TV packages and provide users with access to HD content and interactive services.

In July, MTS was announced as one of the winners of Roskomnadzor the competition for a federal license to provide FDD LTE communication services in. Russia

Business stoppage in Uzbekistan

In July, MTS stopped providing communication services in Uzbekistan in accordance with the order of the Uzbek Agency for Communications and Informatization on the suspension of the telecommunication license of Uzdunrobita LLC, a 100% subsidiary of MTS in Uzbekistan.

Resumption of activities in Turkmenistan

In July, MTS reached an agreement to resume the activities of its subsidiary in Turkmenistan and obtain licenses, technical and legal conditions necessary to work in this country.

Purchase of broadband access operators in Belgorod

In August, MTS acquired Elf LLC and Efkom LLC, which provide fixed-line services in Belgorod and the Belgorod Region under the Elf brand. The purchase allowed MTS to take a leading position in the broadband access and cable TV markets in Belgorod.

Purchase of Intercom in Volzhsk

In August, MTS acquired Intercom LLC, the market leader in cable TV and broadband Internet access in the city of Volzhsk, the second largest city in the Republic of Mari El.

Business resumption in Tourmenistan

In August, MTS resumed the provision of mobile services in Turkmenistan, launching a network throughout the country. On the first day of operation, MTS-Turkmenistan connected more than 600 thousand subscribers who did not terminate previously concluded contracts.

Launch of the TDD LTE network in Moscow and the Moscow region

In September, MTS began commercial operation of the first Russian network of the fourth generation of the TDD LTE standard in Moscow and the Moscow region.

In September, MTS switched to a new standard for encoding a signal when transmitting voice traffic in 3G networks - Wide Band AMR, which provides high-quality voice broadcasting - HD-Voice.

In October, MTS began selling SIM cards for all subscribers in Turkmenistan.

In October, MTS Group signed an indicative offer to acquire a blocking stake (up to 25.095% of the share capital) in MTS-Bank OJSC.

Purchase of several broadband access of operators in the Kursk region

In October and November, MTS strengthened its position in the market for fixed-line, Internet and cable TV services in the Kursk region. The company acquired ZAO Zheleznogorsk City Telephone Communications (ZhelGorTeleCom), market leader broadband access Zheleznogorsk, Pilot LLC and TVKiK LLC, providing cable TV and fixed broadband access services in the cities of Kurchatov and Shchigra.

In December, MTS entered the broadband fixed Internet and pay TV markets of more than 20 Russian cities, building new networks in the Amur, Astrakhan, Voronezh, Nizhny Novgorod, Penza, Tver and Tula regions, Yamalo-Nenets Autonomous Okrug, Perm Territory.

In December, MTS and MTS Bank opened the first salon of a new format in Moscow as part of a project to promote banking and financial services based on MTS retail.

2011

Bitel court, asset seizure in England

On January 24, 2011, Moody's announced that it had revised MTS's corporate rating (Ba2) and may downgrade it. The reason is the possibility of default on two issues of MTS bonds totaling $1.15 billion.

On the eve of MTS announced plans to early repurchase bonds for $400 million with a maturity until January 2012, issued by its subsidiary MTS Finance. The fact is that on January 5, 2011, the London Supreme Arbitration Court ordered her to pay Nomihold Securities about $176 million for the Kyrgyz mobile operator Bitel, over which MTS acquired control in 2005, but did not enter ownership rights. Failure to comply with the court decision was one of the grounds for a technical default on these papers.

At the same time, MTS asked the holders of another bond issue (for $750 million, repayment in 2020) to agree to cancel the condition providing for cross-default in case of non-fulfillment of MTS Finance obligations on Eurobonds for $400 million.

MTS Finance decides whether or not to comply with the London Court of Justice ruling. But if the company does not settle with Nomihold by March 5, 2011, it can sue it, which is fraught with bankruptcy or the related reorganization of MTS Finance, analysts at Moody's argue. This, in turn, may lead to default on both bonds redeemable in 2012 and securities due in 2020.

Moody's is aware that the loss of MTS in court will not significantly affect its ability to fulfill financial obligations and the risks to creditors are small. Nevertheless, there is no certainty that the operator will pay off the debt on time, the agency said.

MTS decided to redeem Eurobonds for $400 million and make the necessary changes in other loan agreements with Eurobond holders in advance in order to avoid a technical debt in connection with the proceedings on Bitel, said Irina Osadchaya, a spokesman for the company.

On January 31, 2011, MTS announced that it had received a decision by the High Court of England to seize the assets of its subsidiary MTS Finance in England and Wales. MTS Finance is prohibited from disposing of assets in these jurisdictions in the amount of $208 million, as well as reducing their value^[32].

The assets were seized in connection with MTS Finance's failure to comply with the November decision of the International Arbitration in London. MTS reported that they consider the decision of the London arbitration unfair, since Bitel was taken out of Tarino's control, and are considering options for further action. "MTS makes it clear that it does not intend to execute the arbitration decision, since formally it does not concern itself, but its offshore subsidiary, behind which there are no assets," says Yuri Bryukvin, general director of the Rustelecom analytical agency.

Consideration of the possibility of buying out MTS in Belarus

In March 2011, President of Belarus Alexander Lukashenko named the price that the state wants to help out from the sale of its share in the Belarusian MTS to the Russians. "We don't mind: $1 billion per table," the president said. - Evaluation performed. If you want to buy - please do not - we will put it up for auction.' At the end of 2010, Belarusian MTS served 4.72 million subscribers.

In April 2011, Deputy Prime Minister of Belarus Anatoly Kalinin announced the authorities' intentions to put up for international auction 51% of the shares of the local mobile operator MTS, which the state owns through Beltelecom. The Russian MTS, which already owns 49% of the shares in the Belarusian enterprise, wants to acquire the stake. However, the Russians offer to pay only part of the cost of the package, and then pay extra, depending on the operator's rating, while Belarus needs to pay the entire package at once, Kalinin says.

Russian MTS wants to buy out a controlling stake in its company, but at a reasonable price, the company explained. If Belarus puts up 51% of the local MTS for auction, the Russian side will also put up its share for sale, said MTS Public Relations Director Elena Kokhanovskaya. Kokhanovskaya does not comment on the question of whether the Russian company really offered to pay for a share in the Belarusian MTS in parts.

Dubovskov appointed President of MTS

In March 2011, he was appointed President of the MTSANDREY Dubovskov Group, who previously served as Director of MTS Ukraine. Andrei Dubovskov replaced Mikhail Shamolin, who had been president since May 2008, as head of the company.

A new Regionalization Group strategy was adopted, according to which the company's management's attention was focused on key regions for business.

For the fourth year in a row, the MTS brand with a value of $10.9 billion was recognized as the most expensive Russian brand in the annual ranking of one hundred of the world's leading BRANDZ™ brands.

Obtaining a GSM 900 license in the Penza region, thus, the company provides GSM services in all regions of the Russian Federation

Completion of connection of COMSTAR - United TeleSystems OJSC to MTS OJSC

Buying four operators in Tula

In August, MTS Group acquired 100% of the share capital in four companies providing cable television and broadband Internet access services under the Altair brand in Tula.

In October, MTS launched a new line of Super MTS tariff plans, which provide subscribers with free calls within the MTS network when replenishing an account for a certain amount. The goal is to stimulate subscribers to talk more by phone and use the money remaining in the account to pay for other operator services.

In October, as part of a joint project with the Big Three operators, MTS completed the construction of communication facilities on the Amur highway.

Purchase of TVT TV and Radio Company in Tatarstan

In October 2011, MTS acquired from a group of investors 100% of the authorized capital of TVT Television and Radio Company OJSC, the largest regional provider of fixed services in Tatarstan - cable television, broadband Internet access and fixed telephone communication. The transaction amount amounted to US $162.9 million.

In October, MTS launched the first contactless fuel payment project in in Perm at LUKOIL gas stations using NFC technology. In December, MTS launched the first commercial instant mobile payment system in Russia based on NFC technology in the field of vending.

In November 2011, MTS and Samsung announced the start of sales on the Russian market of Samsung Smart TV TVs and Blu-ray players with a pre-installed multimedia entertainment service Omlet.ru.

Purchase of 24% from MGTS

In December 2011, MTS completed the acquisition of 100% interest in Sistema-Invenchur CJSC from Sistema, which is the direct owner of 24.4% in the authorized capital of Moscow City Telephone Network (MGTS), for RUB 10.56 billion.

In December, according to an independent study by the Polish company Systemics-PAB, MTS mobile communications in were recognized as the most reliable among the Big Three operators.

2010: Purchase of Multiregion and Metro-Telekom

In July 2010, MTS announced the acquisition of a 100% stake in Multiregion Holding. The transaction amount amounted to $123.5 million, in addition, MTS assumed the holding's debt obligations in the amount of $94.4 million. After the purchase of Multiregion, MTS will be able to offer integrated mobile and fixed-line services, Internet access and cable television in 110 cities, said company president Mikhail Shamolin.

In August 2010, MTS announced the acquisition of 95% of Metro-Telekom 's share capital from Svyazinvest, a 100% subsidiary of Sistema. MTS acquires 95% of the share capital of Metro-Telekom for 339.35 million rubles. ($11.01 million). Metro-Telekom owns a fiber optic network on the territory of the Moscow Metro. The financial results of Metro-Telekom have been consolidated into MTS reports since August 27, 2010.

2008: Network launch in Chukotka

In January 2008, MTS launched the commercial operation of the MTS GSM-900/1800 network in the Chukotka Autonomous Okrug. Thus, the MTS network was put into commercial operation in 82 of 83 regions of Russia, in which MTS has licenses for the provision communication services.

2007: 3G licenses in Russia and Uzbekistan

In April 2007, MTS received licenses for the construction of a 3G network in UMTS format in and Uzbekistan, a license for the construction of a WiMax network in Uzbekistan, frequencies for the provision of services in the 3G standard (UMTS) in Armenia.

In June 2007, MTS brought its stake in Uzdunrobit, a subsidiary in Uzbekistan, to 100%.

In September 2007, MTS acquired 80% of the shares of the leading Armenian operator K-Telecom CJSC (VivaCell trademark) and entered into an option agreement for the purchase and sale of the remaining 20% stake.

In October 2007, MTS became the first operator in the CIS to launch BlackBerry services. MTS Ukraine subscribers received secure mobile access to corporate mail, applications and the Internet on modern BlackBerry smartphones.

In December 2007, MTS announced the acquisition of 100% of Bashsel CJSC (BashSell trademark), a cellular operator of the Republic of Bashkortostan.

In 2007, MTS provided communication to all metro stations in and St. Petersburg, where all MTS communication services, including data transfer services, became available to subscribers.

In 2007-2008. the authorities Belarus parted with control in two of the three local GSM operators - "Mobile Digital Networks" (Velcom trademark) and Best, the shares of the companies went Telekom Austria Group to and Turkish Turkcell , respectively. At the same time, the Russian MTS tried to increase its share in its Belarusian daughter. For 2% of the shares of the Belarusian mobile operator MTS offered $200 million, the Russians were also ready to conclude a five-year option to buy out the remaining 49% of the shares for $400 million. But the authorities of the republic rejected the proposal.

2006: Leonid Melamed - President of MTS

In April 2006, Leonid Melamed became the president of MTS OJSC, who previously held the position of General Director of the insurance company ROSNO OJSC.

In May 2006, MTS completed the restructuring of the company, within the framework of which the following management levels were created: corporate center, business unit, macro-region, region. The corporate center defines the company's overall strategy, uniform standards, regulations and management procedures. The business units are responsible for executing the planned key figures (P&L). Macro-regions carry out operational management of the activities of regional branches. Today there are nine MTS macro-regions, each of which unites regional branches in several constituent entities of the Russian Federation.

In May 2006, at the exhibition "Svyaz-Expokomm 2006," MTS presented the updated brand of the company as part of the new end-to-end brand of the Sistema Telecom group of companies. "The visual solution chosen for the end-to-end brand - a simple and eternal egg-shaped symbol - very accurately reveals the essence of modern technologies: external simplicity, which hides the exciting complexity of content," MTS President Leonid Melamed commented on the event.

In June 2006, together with the "First" tariff, MTS presented an updated line of tariff plans, where for the first time the "constructor" principle was applied for tariffs without a subscription fee, which allowed users to "collect" individual tariff plans, connecting various services focused on the user profile of a particular subscriber at their discretion to the base tariff. Developing the tariff portfolio, in 2007 MTS launched a credit system for paying for mobile communications on mass tariff plans based on the Credit service.

In July 2006, MTS acquired a controlling stake in Dagtelecom LLC, a mobile operator in the GSM-900 standard in the Republic of Dagestan.

2005

Entering the Turkmenistan market: buying BCTI

In 2005, MTS began providing cellular services in Turkmenistan, announcing the acquisition of Barash Communications Technologies, Inc. (BCTI).

Fight for the operator "Bitel" in Kyrgyzstan

In November 2005, simultaneously with the purchase by MTS Finance of a 51% stake in offshore Tarino for $150 million, a put option was concluded on a 49% stake in this offshore. Behind the seller - Nomihold Securities - was believed to be the son of the President of Kyrgyzstan, Askar Akayev Aydar, who was overthrown in the same year, and the structure of the Kazakh group Alliance-Capital. At the time of the conclusion of the transaction, Tarino through three offshore companies on the Isle of Man - Flaxendale Holdings, Kyrgyz Mobil Tel and George Resources - owned 100% of the shares of the only GSM operator of Kyrgyzstan "Bitel."

However, a few days after the announcement of the deal, the Bitel office was seized by representatives of the unknown Russian company Reservspetsmet. Six months later, the assets of Bitel, including the subscriber base, were withdrawn to Sky Mobile, owned by the Russian holding Altimo (it is a shareholder of a competitor - MTS VimpelCom""). In early 2008, Sky Mobile was acquired by the Kazakh structures "" ATP Bank at the expense of VimpelCom, which received the operator in management. At the end of 2010, VimpelCom bought a 51% stake in the Kyrgyz operator for $150 million, while MTS failed to restore control at Bitel.

• In, in 2005, MTS increased to 100% its stake in the following subsidiaries: Horizon-RT in Yakutia, Uraltel, Telesot-Alania, Sibintertelecom, ReCom.

• In the same year, MTS began providing cellular services in Kalmykia, the Jewish Autonomous Region, the republics of the North Caucasus - Ingushetia, Karachay-Cherkessia and Kabardino-Balkaria; received a GSM-1800 license in the Chechen Republic.

• In 2005, at the request of President Belarus Alexander Lukashenko, the general director of the Belarusian MTS was replaced: instead of Russian Andrei Rumyantsev, he became Deputy Minister of Communications of Belarus Vladimir Karpovich.

• In 2005, the company significantly expanded its portfolio of additional services and the first among Russian operators to offer subscribers a set of services based on LBS and RBT technologies.

2004

Continued regional expansion

In February 2004, the licensed territory of OJSC MTS"" and its subsidiaries expanded throughout the territory, with the exception of the Penza Region and the Chechen Republic.

In 2004, MTS began providing cellular services in the Irkutsk, Samara, Ulyanovsk and Kemerovo regions, the republics of Yakutia, Sakha, Buryatia, Chuvashia, Mari El, Mordovia; in the Stavropol Territory, in Kamchatka and in the Magadan Region, as well as, thanks to the acquisition of Sibintertelecom, in the Chita Region and the Aginsky Buryat Autonomous Okrug.

In March 2004, it brought its share to 99.5% in CJSC Siberian Cellular Systems - 900 (CCC-900), in April increased its share to 91% in OJSC Mobile Communication Systems (MCC) in the Omsk Region, acquired a controlling stake in Telesot-Alania, a mobile operator in the Republic of North Ossetia.

In 2004, it brought to 100% its share in CJSC Far Eastern Cellular Systems - 900 (DVSS-900) and OJSC TAIF-TELKOM. MTS became the owner of a 100% stake in Primtelefon and CJSC Digital Networks of Udmurtia - 900 (CSU-900), CJSC Astrakhan Mobile and CJSC Volgograd Mobile.

Buying 74% in Uzdunrobita - Uzbekistan's largest mobile operator

On July 16, 2004, MTS announced the acquisition of a 74% stake in Uzdunrobita, the largest mobile operator in Uzbekistan.

2003

Acquisition of 100% in UMC - the largest cellular operator in Ukraine

In August 2003, MTS completed the acquisition of a 100% stake in UMC, the leader of the mobile communications market in Ukraine.

Buying regional mobile operators

Implementing the strategy of regional expansion, in 2003 MTS became the owner of a controlling stake in the largest operator of Tatarstan TAIF-TELKOM. In addition, as a result of a series of transactions, MTS became the owner of a 50% stake in Primtelefon (Primorsky Territory and Siberia), 50% Astrakhan Mobile (Astrakhan Region), 50% Volgograd Mobile (Volgograd Region).

In accordance with the consolidation strategy, the company increased its participation to 100% in Kuban GSM, to 88.5% in Siberian Cellular Systems-900 (Novosibirsk Region, Altai Republic), to 99.85% in Uraltel (Sverdlovsk Region).

Along with the acquisition of regional mobile operators, MTS continued to build its own networks and in 2003 carried out their commercial launch in the Orenburg and Saratov regions, in the Altai Territory.

In 2003, MTS acquired a 100% stake in a number of leading regional mobile operators: Sibchelenj (Krasnoyarsk Territory, Republic of Khakassia, Taimyr Autonomous Okrug), Tomsk Cellular Communications (Tomsk Region), MarMobile GSM (Republic of Mari El).

2002: Purchase "Kuban GSM," "Dontelecom" expansion in the Urals

In April 2002, MTS acquired Kuban GSM, the largest operator in the south, which made it possible to include the country's main resorts in the MTS network. In October, MTS strengthened its presence in this strategically important region, announcing the purchase of another operator in the Southern Federal District - Dontelecom.

In the same year, MTS strengthened its position in the Urals through the acquisition of a local operator in Bashkortostan, the construction of networks in Perm and Chelyabinsk.

In 2002, MTS networks were launched in Murmansk, Tambov, Arkhangelsk, Vologda, Tyumen, the Nenets Autonomous Okrug of the Republic of Karelia and Altai.

In October 2002, the company expanded its licensing portfolio: the acquisition of Beat LLC brought MTS licenses for the provision of mobile communications services of the GSM-900 standard in four regions of Russia - Tuva, Sakhalin Region, Chukotka Autonomous Okrug and the Republic of Kalmykia.

In June 2002, MTS launched a network in the Republic of Belarus.

2001: Purchase of Telekom21, joint venture in Belarus

• In 2001, the company continued its regional expansion and entered the north-west, acquiring Telekom21, in the same year MTS expanded its network to seven more regions of Russia.

• In 2001, the Russian MTS won a competition for the creation of a second GSM network in Belarus and built a cellular network in the republic under its own brand, but the Russians own only 49% of the company's shares. MTS initially sought to increase its share in the Belarusian MTS to a control one in order to be able to consolidate the financial indicators of the enterprise in its statements.

2000: ADR Floats on the New York Stock Exchange

On March 1, 2000, as a result of the merger of CJSC MTS and CJSC, Mobile RTK TeleSystems OJSC was formed.

On April 28, 2000, the Federal Securities Commission of the Russian Federation registered the initial issue of MTS OJSC shares. In the same year, the company entered the global stock markets. Since June 30, 2000, MTS shares have been listed on the New York Stock Exchange (in the form of American depositary receipts) under the MBT index.

In 2000, the MTS network began operation in the Amur and Yaroslavl regions, as well as in the Republic of Udmurtia.

1998: Purchase of the Russian Telephone Company for licenses in many constituent entities of the Russian Federation

In 1998, MTS bought the Russian Telephone Company and with it acquired licenses for the construction of a network in Smolensk, Pskov, Kaluga, Tula, Vladimir and Ryazan regions. Participating in the work of ReCom, MTS began building a network in the Bryansk, Kursk, Oryol, Lipetsk, Voronezh and Belgorod regions.

The agreement concluded with Rosiko allowed MTS to develop the GSM-1800 standard in 17 more regions of central and 11 regions in the Urals.

1996: AFK Sistema and DeTeMobil consolidate the company's shares

At the end of 1996, AFK Sistema acquired a stake from Russian shareholders, and DeTeMobil bought out Siemens shares.

1994: Launch in the Tver region, Kostroma and the Komi Republic

In 1997, MTS received licenses and began to actively develop in the Tver region, Kostroma and the Komi Republic.

1993: joint venture with the Germans, launch in Moscow

The company was formed in October 1993 by Moscow City Telephone Network OJSC (MGTS), Deutsche Telekom ( DeTeMobil), Siemens and several other shareholders as a closed joint stock company. Four Russian companies owned 53% of the shares, two German companies - 47%.

MTS started in the Moscow license zone in 1994.

Notes