We have issued a report on mobile retail in Russia during Q4 and Full Year 2013, based on the estimates from our mobile retail network.
Highlights from the report:
- In 2013, the number of phones sold in Russia decreased by 1.2% compared to 2012 with around 41.7 mln devices sold
- In 2013, the mobile handset market in Russia expanded by 12% in sales compared to 2012 to reach RUB 230 bln
- In 2013, the smartphone market increased by 53% compared to 2012 with 19.7 mln smartphones sold
- In 2013, the smartphone market expanded by 36% in terms of sales compared to 2012 to reach RUB 188 bln
- At the end of Q4 2013, MTS retail network comprised 4 034 stores, including 1197 franchised outlets.
Please download the complete report here
140219_Retail_Report_Q42013.pdf (1.39 mb)
Tags: retail report
During the first weekend of the sporting events taking place in Sochi, MTS subscribers and roamers have transferred 18.2 TB of traffic using high speed mobile Internet networks. This volume corresponds to approximately 36 mln photos uploaded to Instagram or 340,000 mp3 tracks of the official Olympic hymn! Over the past weekend, MTS customers in Sochi have made voice calls boasting a total duration of 120 mln minutes and sent 13.2 mln SMS. This is equal to the text of approximately 5,000 copies of the Olympic Charter.
The highest levels of usage were registered in the sea cluster area and at the territory of Krasnaya Polyana
Andrei Ushatskiy, Vice President and Chief Technology Officer of MTS, commented, “We have once again demonstrated that our networks can efficiently operate in peak busy hours and have ample capacity to process gigantic amounts of voice calls, text messages and data traffic. MTS is the market leader in Krasnodar Krai, which encompasses the Sochi region and in turn necessitates a high level of commitment to providing best-in-class services to our customers at a time when many guests are attending key sporting events taking place in the region.”
Today MTS offers coverage of all of the outdoor sporting facilities in the sea and mountain clusters. MTS has completed substantial network enhancements throughout the territory of Greater Sochi, including the areas where sporting events will take place. In 2013, all of the base stations in Sochi were upgraded to DC-HSDPA technology, which enabled MTS to increase peak data transfer speeds up to 42 Mb/s. In December 2013, MTS also increased capacity throughout the Sochi and Adler areas by 30 percent. Total investments in the network in the region during 2011-2013 exceeded RUB 10 billion or USD 300 mln.
On February 04, 2014, MTS held its Investor Day in Moscow in front of a crowded room of analysts, investors and friends of the company. Thanks to everyone who turned out to listen to our new story – we appreciate your continued support and confidence in MTS.
If you were unable to join us we encourage you to view the management presentations which can be found here. Alternately, I invite you to follow my comments on Twitter (@JoshatMTS) at #MTSinvestorday2014 where I live tweeted and posted numerous pictures from the event.
MTS executives, led by Andrei Dubovskov, President and CEO, set the stage for future success by debuting MTS’s new 3D Strategy – Data, Differentiation and Dividends – that leverages key MTS strengths and opportunities for growth. Management believes this strategy will yield revenue growth for the Group of approximately 5% for FY2013 while MTS will realize 3-5% revenue growth per year from 2013-2016E.
Below please find a brief overview of each element of the new 3D Strategy.
Data. The success of MTS hinges on ensuring that customers have the absolute best connectivity experience across all part of their life: in their homes, at their workplace and every place in between. MTS will accomplish this by providing customers with the fastest, most reliable data networks and increasing penetration across our subscriber base.
Differentiation. Differentiation starts with offering customers unique products and services to enhance their digital lives. Equally as important is providing a best-in-class customer experience to improve loyalty throughout MTS markets of operation. The final way MTS will differentiate itself is by continuing to establish Moscow as world-class in terms of connectivity and overall network access.
Dividends. Lastly, MTS remains committed to enhancing shareholder returns as the company continues to improve operational efficiency. Given strong performance in 2013 and higher-than-anticipated free cash flow, management announced that it is raising dividend guidance for 2014 – 2015 to at least RUB 90 billion.
In addition to the above, executives also gave presentations on the other elements of the business including Mobile Retail, Financial Services, Digital Moscow, and Technology Roadmap. The event concluded with a lively Q&A session where analysts asked thoughtful questions ranging from our data monetization strategies to LTE rollout targets to opportunities around MTS Money and financial services to MTS retail strategy.
Should you have any questions about the Investor Day or the new 3D Strategy, please reach out to us directly at +7 (495) 223-20-25 or firstname.lastname@example.org.
Joshua B. Tulgan
Director, Corporate Finance and Investor Relations
Last week we published Mobile Retail Report for Q3 2013. You can now look at the highlights of the report as illustrated by an infographic published at our slideshare account.
Today MTS launched sales of an MTS-branded smartphone and tablet designed to operate on MTS's LTE networks at speeds up to 100 MB/s. The MTS 1078 tablet and the MTS 978 smartphone are the most affordable LTE-enabled devices available on the Russian market. LTE-enabled devices from MTS come preinstalled with both popular MTS-branded apps, such as MTS Service, MTS TV, Easy Pay, Second Memory, MTS Locator, and MTS Good’OK, as well as leading apps from our partners, including Opera Mini, Facebook, Odnoklassniki, Vkontakte, Twitter, Shazam, OfficeSuite and Antivirus Pro.
Usage of the preinstalled applications has been shown to help drive data ARPU growth from MTS branded smartphones, which is on average by 20% hig her than average data ARPU of all of the smartphones on the MTS networks.
MTS’s LTE networks have been launched in ten of the Russia’s regions. MTS aims to cover 600 population centers with 4G networks by the end of 2014.
3G/4G, WiFi, Bluetooth
IPS HD 7” 1280*800
2*3 megapixel cameras
1.6 HHz processor
1GB op. memory/4GB inbuilt memory
Micro SD (32 GB)
RUB 9 990
Android 4.2 Jelly Bean
2G/3G/4G, WiFi, Bluetooth
8 megapixel camera
4.7” IPS HD, 1280х720
1 GB op. memory
Price: RUB 9 490
Tags: LTE, devices
We have issued a report on mobile retail in Russia during Q3 2013, based on the estimates from our mobile retail network.
- During Q3 2013, the number of phones sold in Russia increased by 32% compared to Q2 2013 with around 11.8 mln devices sold- During Q3 2013, the mobile handset market in Russia expanded by 13% in sales compared to Q3 2012 to reach RUB 62.4 bln
- During Q3 2013, the smartphone market increased by 58% compared to Q3 2012 with 5.5 mln smartphones sold
- During Q3 2013, the smartphone market expanded by 40% in terms of sales compared to Q3 2012 to reach RUB 51.5 bln
- At the end of Q3 2013, MTS retail network comprised 4 063 stores, including 1247 franchised outlets.
131125_Retail Report Q3 2013.pdf (588.49 kb)
June 30, 2013
Subscriber data for Russian mobile operators is compiled by Advanced Communications and Media, a management consulting and research agency specializing in telecommunications and media. You can view their Q3 2013 subscriber report here.* Including CDMA subscribers** MTS owns a 49% stake in Mobile TeleSystems LLC, a mobile operator in Belarus, which is not consolidated.
We are pleased to share with you recent results that showcase MTS's robust mobile data networks in Russia. We received data from Ookla, a US-based company, which developed the globally popular 'Speedtest' application. As the company relates, 'millions [use Speedtest] to measure their network performance each day, making Ookla Speedtest the world’s most popular internet utility...and [a]cclaimed for its accuracy, reliability, and ease-of-use.' With three million users per day, it has become a world standard for broadband speed measurement and is freely available for download on the Apple iOS and Android platform.
For this report, over 600,000 measurements were performed by subscribers on 2G/3G/LTE networks in all of the Russia’s regions over the 9 month period from January to September 2013. The results show that MTS offers a clearly superior customer experience for data users and network speeds that are among the fastest in the market.
Speedtest_Russia_9m2013_i.pdf (193.32 kb)
The World Bank issued its annual Doing Business report, which tracks the ease of doing business in 189 countries around the world. Up 19 spots from last year’s report, Russia is now ranked 92. Russia has moved ahead of China and is now ranked the most business-friendly among BRIC nations.
Of the eleven metrics tracked on making it easier to do business, Russia improved in five areas: starting a business, dealing with construction permits, getting electricity, registering property, and trading across borders.
From the report:
· Starting a Business: Russia made starting a business easier by abolishing the requirements to have the banks signature card notarized before opening a company bank account.
· Dealing with Construction Permits: Russia made dealing with construction permits easier by eliminating several requirements for project approvals from government agencies and by reducing the time required to register a new building.
· Registering Property: Russia made transferring property easier by streamlining procedure and implementing effective time limits for processing transfer applications.
· Trading Across Borders: Russia made trading across borders easier by implementing an electronic system for submitting export and import documents and by reducing the number of physical inspections.
· Getting Electricity: Russia made getting electricity simpler and less costly by setting standard connection tariffs and eliminating many procedures previously required.
Ahead of all the BRIC nations, Russia is now on top. The country has a rich heritage of innovation from its early advancements in aerospace, engineering and energy generation, and is now poised to reach new heights. In recent years, Russia has witnessed a number of striking economic developments indicating that its economy is diversifying through the growth of dynamic new industries and the advancement of its expanding and economically-powerful middle class. This new direction marks a shift from the resource-driven industries with which Russia is commonly associated. These consumer-driven innovations will lead to higher wages, increased opportunity and an overall improved quality of life for millions of Russians.
This is Russia’s untold growth story and The New Russia.
Tags: Doing Business, Doing Business
Andrei Dubovskov, MTS President and CEO, spoke with Alan Burkitt-Gray, editor of Global Telecoms Business, about Company's agressive roll-out of the LTE networks, booming mobile data and network sharing. Click here to read the artcicle.
This work is licensed under a Creative Commons Attribution 3.0 Unported License.
© 2011 Mobile TeleSystems OJSC. All rights reserved.