MTS

MTC

PJSC Mobile TeleSystems is a leading Russian technology company offering mobile and fixed-line services, Internet access, pay TV, digital services and mobile apps.

Business overview

MTS Group has over 106.5m mobile subscribers in Russia, Armenia, Ukraine and Belarus, and it also provides fixed-line telephony, broadband Internet access and television services in Moscow (through its subsidiary MGTS) and all federal districts of Russia. MTS has 5,700 retail outlets in Russia. MTS has been gradually expanding its business by adding new areas that have high growth potential and synergies with the traditional telecom industry, including financial and e-commerce services and IT solutions in the field of system integration, the Internet of things, monitoring, data processing, cloud computing and electronic document management.

As the leader among Russia's Big 3 operators in terms of revenues and OIBDA, MTS improved its lead over competitors in terms of mobile business income in 2017 and ensured the smallest outflow of subscribers (10% per quarter on average). In 2017, MTS continued developing its networks, optimising costs, increasing operational efficiency and implementing the digital transformation strategy.

In 2017, MTS continued constructing networks in all spectrums, mainly 4G, and tested a 5G network in partnership with Ericsson in Q3 2017. In addition to that, MTS is implementing projects for joint use of the infrastructure and spectrum with Veon and MegaFon. Joint use allows reducing capital expenses per 1 base station by half.

MTS is the leader in the Russian М2М/IoT market. In December 2017, the company opened the first permanent Internet of Things laboratory in Russia under the aegis of international association GSMA, presenting to its customers and partners pilot solutions based on the Narrow Band IoT (NB-IoT) technology that can be used at home, in security systems, in city infrastructure and utility services. In September 2017, MTS started providing services for cloud processing of big data – Big Data as a Service (BDaaS) – on the basis of its own data centres. First Cargo Company, Sberbank and BAT Russia became the first users of the virtual data centre. Acquisition of LiteBox, cloud retail software developer, gave MTS an opportunity to expand its ecosystem of financial products and strengthen its B2B platform. In early 2018, MTS acquired e-sports club Gambit Esports which has one of the top teams in the world, thus entering the e-sports market.

MTS's previous strategy “3D: Data. Differentiation. Dividends” was transformed into “3D: Data. Digital. Dividends”. The Digital segment envisages introduction of digital technologies into the company's main operations and active development of digital products. The operational strategy focuses on development of basic mobile and package services, fixed-line services and digital products. MTS will strengthen the convergence of services and expand its multiservice portfolio.

The 2018-2020 investment programme envisages implementing digital services projects and VoLTE (Voice over LTE) projects, increasing the capacity of optic fibre lines for new services and products and preparing the networks for commercial use of the 5G spectrum in Russia.

Information about MTS's financial results

№1
in terms of income from mobile business
>10m
households connected to fixed-line services
~5,700
retail outlets

Key Executives

Alexey Kornya

President

Ron Sommer

Chairman of the Board of Directors

Corporate website:
http://www.company.mts.ru