MTS blog


MTS Launches New Cloud Service for Big Data Processing

вторник, сентября 19, 2017

MTS expands its digital offering today, bringing out a new cloud-based Big Data processing service. The Big-Data-as-a-Service (BDaaS) infrastructure, hosted in MTS’ data centers, will allow MTS customers to process big data in a quick, flexible and efficient way utilizing MTS’ large-scale computing capacities.

Using MTS’ proprietary cloud product, #CloudMTS, MTS customers will now be able to process and analyze massive volumes of data through software cloud environments such as Hadoop-as-a-Service and Spark-as-a-Service.  The new service will support a wide range of tasks, including business and financial analytics, targeted marketing and advertising, the analysis and personalization of content, and the collection and processing of public data.

Vladimir Khrenkov, Director of the Innovation Center of MTS, commented: "Benefitting from Big Data is no longer the sole preserve of IT companies and large corporations. With MTS’ cloud service, small and medium-sized enterprises can now use Big Data effectively to increase their competitiveness. We offer our customers a secure, fault-tolerant environment with large computational resources and preinstalled calculation tools with the user simply having to upload information using standardized templates and algorithms. In addition, the solution is very easy to scale and meets even the most stringent security requirements."

The system has been designed to be highly efficient and flexible with adjustable processing speed dependent on the customer’s budget. The creation, reconfiguration and removal of applications all happens with one click.

Since the beginning of 2017, MTS has focused on providing cloud computing services across all regions within Russia. The MTS cloud platform is based on VMware and the equipment of leading enterprise-level vendors. Coupled with the geographical distribution of TIER-III data centers and a wide network of its own backbone and city communication channels, the platform allows MTS to provide a comprehensive, completely secure service.

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MTS and FEFU Launch Partnership to Develop Russky Technopark

пятница, сентября 08, 2017

At this year’s Third Eastern Economic Forum in Vladivostok, MTS and the Far Eastern Federal University (FEFU) have signed a partnership agreement to develop Russky Technopark.

Based on Russky Island, Russky Technopark is a large-scale project to develop a unique ecosystem that combines educational institutions, state organizations and private businesses.   

The cooperation of the leading telecoms company in Russia with the largest federal university in the Far East of the country will facilitate technological entrepreneurship and provide support to start-up businesses, driving the development of innovative R&D projects and acting as a launch pad for new digital products. 

MTS will offer students a unique opportunity to participate in the implementation of its projects by forming special teams combining students, teachers and MTS staff. MTS will also actively support the educational process and technological research as well as assist in organizing business and scientific promotional events. 

With its strategic focus on digitalization and the development of IT-products, MTS will benefit from the innovative thinking of young ta

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MTS Has Agreed a New Strategic Partnership to Strengthen Its Digital Safety

вторник, сентября 05, 2017

MTS signed an agreement with Group-IB, one of global leaders in the cyber security space,  to cooperate on prevention and investigation of cyber-crime and online fraud, as well as to enhance MTS and its customers’ protection online. 

The two companies will exchange data on cyber threats, provide each other with ongoing organizational and methodological support, and assist with technical, financial and human resources. In particular, MTS will provide access to the data held by its newly established Security Operations Center (SOC), while Group-IB will provide expert support and highly sophisticated software and hardware solutions to monitor, identify and prevent cyber attacks.

Digital safety is one of the cornerstones of MTS’s transformation into an IT company. MTS has already entered the Systems Integration market with innovative IT solutions and cloud services for B2B clients. 

MTS is determined to robustly confront the cyber threat facing the industry and its customers head-on. This year, in line with its digital strategy, MTS will start offering information security products to clients. The cooperation with a world-class digital intelligence firm will further strengthen MTS’s IT security expertise and make its subscribers and customers even safer. 

The number of cyber attacks in Russia is constantly increasing. According to Group-IB estimates, in 2016, the Russian cybercrime market exceeded RUB 5.5 billion, an increase of 44% over the year. 

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MTS opened its Interactive TV service for app designers

среда, августа 30, 2017

MTS opened its interactive TV service for external app designers. They can now easily integrate their own online services into MTS TV platform by placing them in our app store available on the set-top boxes. Wikipedia, AMEDIATEKA, MEGOGO and Yandex, leading sources of information and online theaters with huge libraries of exclusive licensed Russian-language content, constitute our first, pioneering partners on this project. 

MTS provides the Interactive TV service throughout Russia. Customers from each of Russia’s regions have access to a variety of services including linear and nonlinear TV (i.e. TV available through streaming on a variety of devices), video on-demand, online and cloud services on their home TV set. 

App designers and developers, who now can access this open ecosystem, can smoothly integrate their online service into MTS TV, turning the TV-set into a real home entertainment center and a tool for getting various applications on the big screen. 

Natalia Bratchikova, Head of Marketing for MTS fixed business and TV, commented: 

“Nonlinear TV, applications and entertainment on the big screen are all emerging as part of new interactive TV trends, positioned alongside the more traditional classic TV broadcasting. We launched Interactive TV as a family media communications center, which will concentrate all media content from MTS and access to the subscriber's personal collection, but also the products created by our partners. The latter became possible with to the creation of an application development system within the framework of the MTS TV project, the use of which by third-party companies will not require any extra investment by the vendors of the TV platform. We purposefully set out to create such an environment for partners to foster more choice and flexibility in line with our digital strategy."

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Russian Mobile Retail Report Q2 2017

четверг, августа 24, 2017

The key consumer behavior trend in Q2 2017, arising from MTS Retail analysis, was growth in demand for advanced smartphones priced over RUB 40,000. Consequently, against the background of increasing interest in this category of devices, 60% of high-end smartphones in the MTS retail network were bought on credit.

In Q2 2017, the share of smartphones over RUB 40,000 bought on credit doubled from 32% to 60%. Overall, the sales of smartphones in this category grew 49.5% in revenue and 48.5% in unit terms. 

The overall share of affordable as well as premium category smartphones sold in the MTS retail network increased to 20% of sales in unit terms (+6 p.p.) and 35% in money terms (+13 p.p). The average sale price of smartphones bought on credit increased 22% y-o-y to RUB 18,500 due to larger share of such smartphones in total sales. Meanwhile, the average price of smartphones in general sold through the MTS retail network increased by just 8% to RUB 10,500. 

The growth in sales of smartphones bought on credit was attributable to wide availability of credit facilities including better installment terms under the 0-0-24 and 0-0-36 schemes, the launch of online lending in MTS e-shop, cashback options as well as changes in consumer behavior. The subscribers’ approach towards the acquisition of a new smartphone became more pragmatic: the average lifetime of a device increased from 1.5 to 2 years, with customers preferring to buy more advanced smartphones with longer service life from well-known brands such as Samsung, Apple and Huawei.   

Alexander Mosyakin, CEO of MTS Retail, commented: "We saw that today our customers are not just interested in purchasing a phone, but look for a universal device that assists them with everyday tasks: to buy tickets to the cinema, pay utility bills, watch a video, communicate on social networks etc. More and more people choose smartphones with a larger screen and a better camera. To meet this demand, we have enriched our traditional portfolio of available smartphones with more advanced and reliable models that also enable the full use our digital products such as the e-wallet, cloud services, TV, as well as a range of other apps in the MTS ecosystem. Meanwhile, we continue keeping our prices highly competitive and offer our clients favorable payment conditions and credit options. All this makes an acquisition of a new smartphone an attractive proposition for our customers”. 

As the interest in advanced smartphones is growing, the share of feature phones sold in the MTS retail network is declining: 270,000 devices were sold in Q2 2017, a decrease of 60%. The share of C-branded devices with basic functionality that cannot compete with the leading devices is also in decline.

Samsung, Apple and Huawei are the three key vendors in the MTS retail network. Although Samsung have now devices returned to the shelves of other retail chains, their share in MTS outlets remains high and comprises 32.8% of units sold and 44.4% of revenue. Huawei showed the most impressive growth: its share of retail sales grew from 1% to 17%. Another leader in sales in MTS retail network was Apple: its devices priced over RUB 40,000 sold 2.5 times better in Q2 2017 than a year ago. Meanwhile, the share of Alcatel sales dropped 12.5% in unit terms and 7.5% in cash terms. 

 

Russian smartphone market 

Samsung remained the most popular cellphone brand in Q2 2017. The Korean manufacturer’s market share was approximately 26% in unit terms (+5 p.p.) accounting for 32.4% of total revenue (+5p.p.). This increase is attributable to the successful launch of the new Galaxy S8. The model’s success allowed Samsung to outsell Apple, its nearest revenue competitor, in the months of May and June. iPhone sales accounted for 32.1% (- 0.3 p.p.) of revenue and 12% (+1 p.p.) of units sold for the reporting period.

The third most popular brand in Russia was Huawei. The company's market share reached 8.4% in unit terms. The number of smartphones by other Chinese manufacturers - LENOVO and ZTE - sold in the Russian market decreased by 4 p.p. and 2.8 p.p. y-o-y respectively for the reporting period. 

The share of smartphones in total handset sales grew to 74% in unit terms (+ 5.5 p.p.) and 96% in money terms. The average price of smartphones sold grew 6% y-o-y to RUB 12,900. 

Overall, in Q2 2017, 6.2 mln smartphones were sold, an increase of 12% to the previous year. The sales of feature phones in Russia declined 16% to 2.2 mln units. The revenue from smartphone sales grew 16% to RUB 79.9 bln, while sales of feature phones decreased 20% to RUB 4.3 bln.  

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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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Recent Tweets

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

Twitter сентября 8, 10:48
$MBT new partnership with Far Eastern Federal University https://t.co/TXAIhObLvY

Twitter сентября 5, 14:27
$MBT strengthens digital safety through cooperation with cyber security firm https://t.co/JKcDttN4uy

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MTS opens up TV service to developers https://t.co/PkTSFp6YZa

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$MBT launched innovative 2-year master progtam on #eHealth in cooperation with Polytech University https://t.co/68b9WVxjLT

Twitter августа 28, 15:20
#MTS Q2’17: Grp Rev +0.3% Grp OIBDA +8.2% Grp NProf +62.6% Revised Outlook: Grp Rev +/-2%; OIBDA >+4% CAPEX lower to RUB 75 bin $MBT $MTSS

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