MTS blog


MTS WINS TWO PRESTIGIOUS IR AWARDS

пятница, июля 14, 2017

MTS received two prestigious IR awards at the IR Magazine Russia & CIS Awards 2017 ceremony, achieving recognition in both a corporate and a personal category.

MTS was named the winner in the key corporate nomination of Grand Prix for the Best Overall Investor Relations for mid cap companies. Josh Tulgan, Director, Corporate Finance & Investor Relations, MTS, received a  personal award of the Best Investor Relations Officer in Telecommunications Services.

Josh has been running Investor Relations at MTS since 2007. Under his leadership, the company achieved numerous professional awards. On receiving the award, he commented: “This recognition is really a testament to the entire team, from our colleagues in management to the agencies and brokerages that have aided us, and of course the entire IR team. I am grateful that our considerable activities over the past year, which included buybacks of both bonds and our equities and a successful Investor Day, were recognized by the greater investor community.” 

Award winners are selected by Thomson Reuters Extel, IR Magazine Russia & CIS’s research partner, as part of their independent and comprehensive Russia Investor Relations Survey.

The Annual IR Magazine Russia & CIS Awards Ceremony is recognized as the premier industry event in the IR calendar honoring Investor Relations excellence and leadership in the Russian corporate space. The 2017 ceremony took place on July 13 at the Marriott Grand Hotel in Moscow.

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Russian Mobile Retail Report Q1 2017

среда, июня 14, 2017

In Q1 2017, mobile phone sales in Russia grew 6.2% in monetary terms to RUB 79.4 billion. The key trend seen across MTS’ retail network was the outperformance of LTE-smartphone sales, which was driven by favorable purchase terms available for such gadgets. The total number of MTS online store users increased 11% y-o-y. The most rapidly growing segment for the online store was female users aged over 45, which grew by 17% y-o-y.

In January-March, 8.15 million mobile phones were sold in Russia - 6.12 million smartphones (+ 6% y-o-y) and 2.03 feature phones (-21% y-o-y). In Q1 2017, smartphones sales in Russia increased by 7.9% y-o-y to RUB 76.1 billion.

The average market price of mobile devices increased by 7.7% to RUB 9,749. Smartphones’ share of sales was 95.7% in monetary terms, an increase of 1.5% from the previous year. Smartphone sales represented 75.1% of total mobile sales by units, a year-on-year increase of 5.5%.The average price of smartphones sold on the market increased 1.4% y-o-y and amounted to RUB 12,423.

LTE devices were the main driver behind smartphone sales growth. The share of LTE devices in total smartphone sales reached 66% by units sold (+23.1 p.p. y-o-y) and 88.6% in terms of value (+15.5 p.p. y-o-y). 

The main reasons for increased sales of LTE-enabled smartphones include higher demand for multimedia content, the widespread development of 4G networks and the wider choice of models available. Lower average handset prices, which have fallen by 20% y-o-y to RUB 16,576 (Q1 2016: RUB 20,645), were also a key factor.

By the end of 2016, Samsung smartphones accounted for 24.4% of total sales in Russia, an increase of 3.5 p.p. y-o-y. Apple was the second most popular brand with a share of 11.9% (+1.6 p.p. y-o-y). The fastest growing brand of smartphones in Russia, Huawei, occupied third place and quadrupled its share of sales  to 9.3% from 2.3% a year earlier. ZTE has a stable market share at 5.8%, while Lenovo's share decreased by 3.4 p.p. to 5.7%.

 

MTS retail: women are increasingly buying gudgets online 

“During Q1 2017, MTS reduced the size of its retail chain by 469 stores to 5,725, in line with where it was in spring last year. Simultaneously, we noticed substantial growth of the number of people purchasing products through MTS’ online store. Interestingly, this sales channel is particularly popular with women over 45 years old. This is an important trend as it shows that online stores can be popular not only amoung young people but also across more conservative customers”, -commented Kirill Dmitriev, Vice President for Sales and Services, MTS. 

MTS continues to improve the affordability of advanced and multi-functional smartphones: the price of MTS’ LTE-devices is 24% lower than the average market price. Favorable purchase terms offer MTS customers more flexibily to choose more advanced LTE-smartphones with high-quality cameras and large screens. 

MTS’ sales of LTE-enabled smartphones increased by 27.1 p.p. y-o-y to a 73.4% share of sales by volume, which is 10 p.p. higher than the market. In monetary terms, the share went up by 20.5 p.p. to 90.8%, demonstrating how MTS’ LTE sales outperfomed the market both in absolute terms and market share growth rates.

The average price of smartphones sold through the MTS retail chain increased 14.3% y-o-y during 2016. The share of MTS’ smartphone sales in the RUB <5,000 and RUB 5,000 – 10,000 categories decreased by 5.2 p.p. y-o-y and 5.7 p.p. y-o-y, respectively, in monetary terms. The share of smartphone sales in the RUB >10,000 category increased, while smartphones in the RUB >40,000 price range demonstrated the fastest share of sales gain at 6 p.p. y-o-y.   

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MTS DRIVES IT INNOVATION THROUGH PARTNERSHIP WITH SKOLKOVO

среда, июня 07, 2017

MTS has signed a partnership agreement with Skolkovo for the development of MTS’ existing and new IT services. As part of the agreement, MTS will provide open access to its programming interfaces to enable Skolkovo developers to apply innovative updates for MTS’ apps. MTS will also be working with Skolkovo start-ups on developing brand new IT services. 

The Skolkovo Innovation Center, also known as the Russian Silicon Valley, is a unique ecosystem of entrepreneurship and innovation, engendering a startup culture and encouraging venture capitalism. The strategic goal of the Skolkovo Innovation Centre is to concentrate international intellectual capital, thereby stimulating the development of break-through projects and technologies. 

As part of the agreement, MTS will open up access to its application programming interfaces (APIs) and provide computing resources in its cloud infrastructure to all Skolkovo residents interested in developing IT solutions. This will allow developers to apply their technologies directly to MTS’ existing products and test them in cooperation with the operator. If trials prove successful, MTS is ready to offer commercial partnerships for the joint development of products.

MTS also intends to work with Skolkovo’s start-ups on new product development. MTS is particularly interested in the development of ground-breaking technologies in new promising areas where the operator can expand its service offering, such as e-health, online education and e-sports. Skolkovo would offer grants to residents who are selected as MTS’ partners. 

In addition, MTS and Skolkovo intend to spearhead a wider initiative aimed at developing Russia’s IT industry. This will include the organization of regular industry events and provide opportunities for industry experts to share knowledge.

"MTS is already developing solutions based on the world's most innovative technologies, including artificial intelligence, machine learning and Big Data analytics, and we are constantly looking at ways to ensure our products remain at the forefront of technological development. The start-up community at Skolkovo is well-known for being a leader in innovation and we’re excited to work with the residents to both enhance our existing IT services and develop new ones. Our customers will become the primary beneficiaries of such partnership and will be the first to try the most advanced and innovative MTS’ products," said Vladimir Khrenkov, Director of the Innovation Center, MTS.

"The partnership with major tech leaders enables innovative companies to choose a promising area of development, and then turn their interesting ideas into practical solutions. As part of the joint work of the Skolkovo Foundation and MTS, several promising "pilot" projects related to the telecommunications industry have already been launched, and we hope to make this collaboration more systematic and intensive, "said Konstantin Parshin, Vice President, Executive Director of IT Cluster of the Foundation Skolkovo.

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MTS LAUNCHES UPDATED MTS MONEY WALLET APP

вторник, мая 30, 2017

MTS today reintroduced its MTS Money Wallet app to the market, which brings new functionality to offer its users a suite of financial services, all from one app.  

From originally offering limited payment and money transfer functionality, MTS Money Wallet has significantly expanded its service offering to become a fully integrated financial platform. The updated version offers users the following:

Expanded payment services: users can make payments from their e-wallet account, mobile account balances, a bank card issued by any Russian banks and now users can issue a prepaid NFC bank card inside the app (the last option currently works only with MTS Bank and for Android users).

Higher availability: both individual and corporate users can use MTS Money Wallet. Now it is also available for non-MTS subscribers. 

Contactless payments: by creating a prepaid MTS Bank card (so far available only with MTS Bank and for Android users), users can now use the app to make contactless payments at POS terminals 

Online shopping: customers can pay for their goods online using MTS Money Wallet’s one-click functionality

Investment services: users can buy and sell mutual funds through the app

Increased synchronization with MTS Bank: more seamless integration, including the ability to apply for other MTS Bank services such as credit cards through the app

Expanded merchant base: payments can now be made with a broader range of merchants

MTS is continuously developing the MTS Money Wallet app to offer more functions. As this service develops further, users will be able to make payments on messenger apps, tie up their wallet account to Apple Pay and Samsung Pay and buy other investment products, including shares and bonds. From July 2017, the service will also open up to feature phone users, which will allow them to access the MTS Money Wallet services through USSD commands. At present, 45% of MTS’ subscribers use feature phones, meaning the launch of USSD functionality will significantly expand the e-wallet customer base. MTS will continue to integrate the MTS Bank mobile app features inside its e-wallet. 

By the end of 2017, payment terminals of different merchants in Russia – including shops, restaurants, taxi services and online stores – will be accepting ‘MTS Money Wallet as one of payment system as well as they accept Visa, MasterCard, MIR cards. MTS Money Wallet users will be able to earn loyalty points and access exclusive offers from the Company’s partners, since every user is automatically enrolled onto the MTS Bonus program. 

MTS Money Wallet was originally launched in August 2016 as the MTS Money app. Approximately 35 million of MTS’ subscribers currently use the operator’s financial services, and six million of them are active mobile commerce users. The penetration number has been growing by 25% each year since 2014, creating significant growth potential for the penetration of MTS Money Wallet.

To start using MTS Money Wallet, simply download the app or sign-up at www.dengi.mts.ru.



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MTS WINS GTB INNOVATION AWARD

среда, мая 24, 2017

MTS won an innovation award at the Annual Global Telecom Business Summit and Awards that was held in London on 23 May.

Our Virtual PBX was recognized the true convergence of fixed-to-mobile communications. The service provides companies that have from five to 10,000+ employees with effective and cost efficient corporate communications across Russia.  Each subscriber of Virtual PBX receives a single, short phone number for mobile and fixed phones, and the company receives a dedicated multi-channel number for incoming and outgoing calls with a call forwarding option. To deploy the system no additional hardware or IT support is required.

The solution was implemented in cooperation with BroadSoft, the world’s largest telecommunications vendor and a strategic partner of MTS.  Virtual PBX is based on the BroadSoft’s BroadWorks call management platform and UC-One suite of business applications. Since its commercial launch less than a year ago, the service has over 50,000 subscribers.

“The success of Virtual PBX is the result of close cooperation between MTS and BroadSoft. BroadSoft has provided MTS with extensive support throughout the deployment launches, including training and consultancy, expertly helping execute this award-winning solution,” said Vasyl Latsanych, Vice President for Strategy and Marketing, MTS. “Our strategic relationship with BroadSoft strengthens MTS’ leadership position in the Russian corporate telecommunications market”.

This is the seventh time MTS has been recognized with a GTB Innovation Award for its innovative technical solutions. The previous awards were given for our projects in mobile payments and banking services, services for small and medium businesses, IoT\M2M-solutions and cloud services.  Top managers at MTS have been repeatedly mentioned in the under-40 bracket of the most successful leaders of the telecommunications business worldwide by Global Telecoms Business.

MTS is a leader in the Russian corporate communications market. According to AC&M-Consulting research, 44% of large and medium-sized businesses use its services.

 

GTB Innovation Awards, established in 2007 by well-respected international telecommunications magazine Global Telecoms Business, are given to the most innovative projects and initiatives undertaken by companies in the telecommunications industry. 

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MTS AND ERICSSON SECURE NEW RECORD DATA SPEED FOR RUSSIA DURING 5G TEST

четверг, апреля 20, 2017

Moscow, Russian Federation – PJSC MTS (NYSE: MBT, MOEX: MTSS), the leading telecommunications operator in Russia and the CIS, and Ericsson (NASDAQ: ERIC), the world leader in information and communication technologies, announce the successful trial of 5G technology, during which data transfer speed reached a record of up to 25 Gbps for the first time in Russia on a movable prototype of a smartphone. Previously, all 5G trials were conducted only between stationary devices.

Testing was conducted at Moscow’s ‘Opening Arena’ stadium, where a base station operating in the range of 14.5-15.3 GHz transmitted a signal to a movable prototype of a subscriber’s at the speed of 25 Gbps. This data transfer speed allows just for 18 days to transfer absolutely all traffic of all MTS subscribers that they exchanged during 2016 - including downloading and streaming of movies, video calls, Internet surfing, downloading and transferring media files. The total volume of traffic that MTS subscribers transferred in 2016 is 1,206 Pb.

As part of the trials, MTS and Ericsson experienced other possibilities and advantages of 5G technology for various scenarios: online video streaming in 4K format, as well as virtual reality services and remote robot control over a mobile network that require ultra-small delays and high data rates.

"The tests showed an absolute record for data speeds in Russia to a mobile device, and on specific examples we saw how close we are to the daily use of 5G solutions. MTS is currently building a data transfer network and testing various solutions to ensure we’re ready for 5G standardization. We now hope in cooperation with our partners to develop an extended 5G demo zone for the major sporting event of 2018 in Russia, "said Igor Egorov, Director of Moscow region, MTS.

"The scalable and dynamic 5G network gives operators the ability to create many new services and generate additional revenue streams. The 5G network will ensure the automation of business processes and the transformation necessary for the dissemination of the Internet of Things, as well as the use of services such as VR and AR," added Hannes Ekstrom, Head of Customer Unit MTS, Market Area Europe & Latin America, Ericsson.

 

The following innovative technologies were used during the tests:

Multi-User and Massive MIMO with an array of transmit-receive antennas and the ability to simultaneously service several subscribers in one sector of a cell on the same frequency band. This significantly increases the data transfer rate and the efficiency of the frequency resource;

Beam Tracking, which provides user devices with a stable connection and the best throughput when moving;

Dynamic TDD, which improves the data transfer rate and the efficiency of using wireless network resources by dynamically redistributing the bandwidth when transmitting traffic in the downlink and upstream channels.

 

The trials are part of the strategic partnership between MTS and Ericsson within the framework of the agreement signed in December 2015 on cooperation in the development and implementation of 5G technologies in Russia.

Cooperation between MTS and Ericsson on innovation and 5G:

In July 2015, for the first time in Russia, MTS and Ericsson completed a test for an automatically scalable function of the multimedia messaging subsystem (IMS) in the cloud to provide voice services in the LTE network (VoLTE);

In October 2015, companies tested Ericsson’s LTE Broadcast technology on a commercial network for the first time in Russia. During the test session in Nizhny Novgorod, HD-quality video was streamed to an LTE-smartphone supporting LTE Broadcast;

In June 2016, the companies tested LTE-U (LTE-Unlicensed), demonstrating the aggregation of two frequency bands - 10 MHz in the 1800 MHz band of LTE and 20 MHz in the unlicensed 5 GHz band at Wi-Fi access points. During the tests, the data transfer rate reached 200 Mbit / s;

In June 2016, the companies signed an agreement on the supply of software for the modernization of MTS’ network. As part of the agreement, which will run until 2019, the companies will implement IoT technology solutions and test extended GSM technology (EC-GSM-IoT).

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MTS LAUNCHES AN INNOVATIVE CAR INSURANCE PROGRAM

вторник, апреля 18, 2017

MTS and INTOUCH insurance company have launched the first in the Russian market IoT-based insurance program Smart Kilometers which will allow “weekend drivers” to save up to 25% of the cost of the non-obligatory car insurance.

“Weekend drivers” are those drivers, who do not use a car very often, and can now get a discount on car insurance through connected cars technology. When buying car insurance, the customer can opt in for a mileage limit to receive an appropriate discount. Drivers, who drive less than six thousand kilometers a year, may receive a 25% discount of the total insurance price. Drivers whose mileage would be restricted to up to 10,000 km will get a 15% discount, while drivers who choose a restriction of 12,000 km will save 7% of the insurance price.

The program Smart Kilometers has been launched in Moscow and St. Petersburg, Moscow and Leningrad regions.

During the insurance period, the GPS tracker installed in the client's car will transmit the mileage data to a server. A client can control mileage through the mobile app or on his personal account on the website of the insurance company. ​​

"More than a third of all cars in Russia pass less than 12 thousand kilometers a year. Smart insurance will allow such drivers not to overpay for insurance and at the same time protect themselves from risks. Telematics insurance is an example of how high technologies bring tangible benefits to ordinary Russian drivers. For the insurance business, this is also a new level, which became achievable thanks to the cooperation with MTS, the leader in the M2M / IoT market. Our partnership in IoT allowed us to launch several smart insurance programs, based not on the fixation of the accident rate, but on the individual driving behavior - driving style and frequency of use of the car, "said Pavel Butenko, director of marketing and direct sales channel of INTOUCH insurance company.

"MTS is one of the world's pioneers developing products in IoT segment. We are constantly increasing the number of intelligent solutions and are open to interacting with companies from different industries and prepared to improve business performance through the use of M2M / IoT technologies. The investments that MTS has made in the modernization of our network in recent years have made it possible to create a universal environment for the IoT development. We provide our partners with reliable access to the network and data protection in most parts of the country. This allows us to attract leading vendors and to develop innovative IoT-based services for customers. Transport monitoring and smart insurance are excellent examples of such services, which have already gained popularity, "said Elena Nechai, Director, Marketing and Product Marketing at MTS.

 

Additional Information

The first smart insurance program in Russia was launched by MTS and INTOUCH in September 2014.  It allows to calculate the cost of the insurance policy through IoT technology and take into account the individual’s own driving style. The telematics sensor installed in the car measures parameters of the driver and creates his accurate profile. As a result, cautious drivers may earn back up to 20% of their insurance spending.

MTS is the largest provider of M2M / IoT solutions in Russia by the number of SIM cards. According to AC&M Consulting, MTS’ market share is 40%. Our smart insurance products won several international awards.

 

 

 

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MTS IS THE LEADING OPERATOR IN E-COMMERCE IN RUSSIA

понедельник, апреля 10, 2017

According to the E-Commerce Index TOP-100 2016, issued by Data Insight, MTS online shop mts.shop.ru retains its leadership among Russian operator’s e-shops by online sales in 2016. 

Data Insight research agency, specializing on e-commerce, monitored over 3,000 largest online shops in Russia and ranked them based on several parameters, including shop attendance, conversion of attendance to orders, order execution coefficient, and average bill. MTS e-shop was ranked #1 among operator’s e-shop #24 and in the overall rating. 

In 2016, online sales at MTS e-shop reached RUB 5.2bln, demonstrating a solid growth of 41% year over year. The number of executed online orders grow comparably by 44% year over year. 

Commenting on the ranking, Kirill Dmitriev, Vice President for Sales and Services at MTS, said: “While cutting the number of our physical shops, we are simultaneously increasing MTS online presence.  Sales continue to move online. It is a global trend. Realizing the growing importance of e-commerce, we have been actively developing our e-shop since 2014. We continue to see positive results: for the last three years, our online shop share in the overall turnover of MTS retail showed an impressive growth from 3.7% in 2014 to 10.4% in 2016. Our ambition is to further increase this share to about 13% in 2017. 

Digital commerce is a key part of our updated 3D Strategy focused on digitalization. Our strategic goal in e-commerce is to make shop.mts.ru the key digital sales channel and transform it into a single marketplace for all MTS products”.


The full rating E-Commerce Index TOP-100 2016 is available here: http://datainsight.ru/top100 


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MTS Corporate University named one of the world’s best

пятница, апреля 07, 2017

MTS Corporate University has received the silver award in the ‘Best Corporate University – Innovation’ category at the Global Council of Corporate Universities (“GlobalCCU”) Awards 2017.

The GlobalCCU Awards recognize companies that have delivered training and development of the highest level through their corporate universities. GlobalCCU particularly rewards companies that have used their corporate university structures as a tool to implement broader business strategies. The awards ceremony was held in Paris during the GlobalCCU Forum.

"MTS Corporate University uses innovative solutions to provide market-leading training to our employees while simultaneously strengthening our brand and culture, and we are proud that the scale of our program has been recognized internationally. MTS Corporate University will remain an extremely important element of our strategic planning as the company continues to evolve in the digital era," commented Oksana Kukharchuk, Director of MTS Corporate University.

The GlobalCCU is the leading global association of corporate universities, which was established in 2005 and unites corporate universities of companies from more than 50 countries.

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MTS Compliance Director named Chief Compliance Officer of the Year

вторник, апреля 04, 2017

MTS is pleased to announce that its Compliance Director, Julia Romashkina, has been named EMEA Chief Compliance Officer of the Year at C5 Group’s Annual Women in Compliance Awards.

The Annual Women in Compliance Awards, now in its fourth year, celebrate the achievements of female compliance professionals and recognize female leaders in the field. Awards were given across 14 categories and over 300 industry professionals attended the awards ceremony in London.

The judging panel was made up of leading compliance experts and representatives of regulatory bodies from the UK, Europe and beyond. When announcing their choice of Julia Romashkina as EMEA Chief Compliance Officer of the Year, the judges highlighted her success in promoting a compliance culture both within the company and beyond.

"Today, to be a successful company, it is not enough to only strive for investment attractiveness and operational efficiency. MTS’ status as a public company and our deep brand awareness oblige us to support our reputation as a socially responsible organization to all our stakeholders. We have, therefore, been actively developing a unified compliance system at MTS for several years, which now encompasses eight different areas, including anti-corruption compliance, inside compliance and environmental compliance. We’re honored that the hard work we have been doing to build our compliance culture has been recognized internationally. In 2015, MTS was recognized as an example of leading Russian anti-corruption compliance practice based on the results of an independent evaluation. In 2016, an independent study proved that anti-corruption compliance at MTS meet the highest global standards”, commented Julia Romashkina.


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Follow me, Josh Tulgan, MTS Director for Corporate Finance and Investor Relations, on twitter

Twitter августа 7, 11:37
smartphones actively replace feature phones: 18% yoy drop in feature phone sales in H2 2017 https://t.co/giL8Ocmytw via @Vedomosti

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$MBT acquires additional frequencies resources in Bashkortostan https://t.co/e7aZUTvEzn

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$MBT IR team and IRO received IR awards https://t.co/b5Zir6WS7b https://t.co/oaowUDoXCr

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MTS to hire 1800 programmers to develop digital services and promote digital transformation (RUS) https://t.co/FfObs7VXLm

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