MTS blog


MTS SEGMENTATION RECOGNIZED AS WORLD CLASS

четверг, сентября 03, 2009
MTS recently won the 2009 Summit Marketing Effectiveness Award for our customer segmentation. We were recognized in the Consumer Services category for the robust approach we took to deliver most suitable products and services across our footprint of 6 countries with a total population of over 230 million. We became the first company in our markets to be recognized for customer segmentation, a testament to the fact that we have implemented world class solution.

To develop our customer segmentation, we have partnered with Kantar, one of the world's largest insight, information and consultancy networks. In fact, you can view a case study of the work we have done together on their website: http://www.kantar.com/#/what-we-do/watch/mts-data-mining-across-territories

Approaching six markets with significant economic and cultural differences, we intended to create a common language and a consistent platform that would allow us to offer better tailored services as well as make our marketing effort more efficient. This overarching platform was meant to guide the development, implementation and evaluation of all our marketing initiatives and improve marketing effectiveness of the MTS Group.

To this end, we have implemented multi-market macro segmentation, aiming for unique consistency of approach and a new level of accountability. Our segmentation is based on the needs, attitudes and the actual usage dynamics, taken both from market surveys across our markets and customer databases, allowing to define segments more consistently and address them with maximum efficiency.

A particularly unique aspect of our segmentation approach, one that’s on the leading edge of global marketing practice, is that it is directly linked to our customer base. This allows us to set and measure segment-specific metrics when we launch a new customer offer, such as the size of the segment, revenues, ARPU, MOU and many others.

Tags: , , , ,

FLAGSHIP STORE IN MOSCOW

вторник, августа 25, 2009



Earlier in August, we have opened the doors of our new flagship store in Moscow. The new store is located on the first floor of the Evropeiskiy shopping center, one of the more popular locations with the residents of Moscow. Around 190,000 people visit the center daily and over 220,000 per day come there during the weekend, according to the data provided by the shopping center.

The new flagship store is part of the development of MTS’ monobrand retail network in Russia, which includes the acquisition of multibrand retailers, increasing franchisees and the rebranding and optimization of existing locations. The key focus of MTS’ retail strategy is to provide personalized customer service and better tailored products, including exclusive devices bundled with applications developed by MTS. For instance, we have recently launched Nokia’s N97 mobile computer exclusively in our retail network.

The new flagship store has been developed using global best practices. We have particularly benefited from our partnership with Vodafone, whereby we have been able to draw from their experience operating retail networks around the world. The key feature of the store lies in its open lay-out with the majority of the retail space dedicated to handsets and devices. Customer can also handle and test the devices, something that has not been possible in Russian retail before.



Tags: , , , , ,

MOBILE INTERNET TAKING OFF IN RUSSIA

среда, августа 19, 2009


Mobile Internet is taking off rapidly in Russia, as all three national mobile operators already operate 3G networks and offer mobile Internet modems. We have been selling the MTS Connect modem in Russia since early 2008 and have sold over 600,000 modems since July 2008, as 3G networks were launched across the country. Currently, we estimate that around 200,000 modems are being sold monthly in Russia by mobile operators, CDMA operators and WiMAX providers, and MTS Connect accounts for around 30% of the total.

Yesterday, we announced a partnership with Intel to support the uptake of mobile Internet solutions in Russia. The first joint initiative under this partnership is a promotion of a bundled offer that will include an Intel-powered netbook, an MTS Connect modem and a special MTS tariff plan.

The first netbook made available under the initiative is Acer Aspire One D250, powered by Intel® Atom™ Processor (http://www.intel.com/technology/atom/). Starting August 18, the netbook will be available across Russia in MTS monobrand retail stores, packaged with an MTS Connect modem, an MTS SIM card with a mobile Internet tariff plan and 600 MB of free traffic.

With a price tag of RUB 14,990 (approx. $470), the new netbook will be an attractive offer to customers in Russia who are looking for greater portability or an entry-level PC solution. As MTS’ 3G networks are already available in 39 Russian cities, the new netbook will let MTS subscribers connect to the Internet with speeds of up to 3.6 Mbit/sec using our HSPA networks. MTS Connect modem allows subscribers to connect to Internet in international roaming and through EDGE/GPRS networks in Russia where 3G is yet to be deployed.

Tags: , , , ,

IR DEPARTMENTS AND M&A

понедельник, августа 17, 2009
By Joshua Tulgan, Director of Investor Relations at MTS (NYSE:MBT)

Recently, we tracked a discussion about the role of IR in the M&A process on a couple of industry blogs (original entry and the response to it). Given the recent announcement of our intent to acquire a controlling stake of COMSTAR-UTS, I thought I could offer one perspective from an IR professional.

I would agree that investment banks are a great resource for information for M&A communications (i.e. the data points used to sell the deal, such as multiples and comparisons with other similar transactions, particularly in a global context). At the same time, I do believe that the IR department should be brought in to discuss such key questions as the strategic justification, valuation process, and key integration issues inherent in any M&A deal.

The IR department has been afforded an active role in many facets of the transaction due to the legal, governance and valuation issues involved. Our key task has been laying the groundwork for investors to appreciate the strategic importance of the transaction, followed by a multi-faceted approach to managing the information flow, investors’ expectations and management intent following the closing of the transaction. Our success so far has been due to our deep involvement in the deal and driven by the fact that long after the banks, our M&A team, the lawyers and DD advisors are gone, the IR department will be left to mind the store so to speak.

In the end, we do sell ideas, data points, etc. to our audiences, but IR affords the rare opportunity to craft the item being sold. And I think any salesperson would admit that the greater role IR has in shaping a product, the more the IR function will believe in the product. And this makes the product that much easier to sell.

Tags: , , ,

INTERVIEW ON RUSSIA TODAY

четверг, августа 13, 2009
Russia Today, the leading English-speaking TV channel based in Russia, has reported on our Q2 results and the intent to acquire a controlling stake in COMSTAR-UTS.

You can check out the video on their website, featuring an interview with our President and CEO, Mikhail Shamolin.

Tags: , , , , , ,

MTS Q2 2009 RESULTS

четверг, августа 13, 2009
On August 11, we disclosed our financial results for the second quarter 2009. As always, we posted a lot of information about the results on our website – the press release, the presentation and the Excel spreadsheet with summary financial information for 2004-2009. In the presentation, we have included detailed slides about our future strategic priorities, logic behind the intent to acquire a controlling stake in COMSTAR-UTS (see the original press release), as well as more insight into our retail development and handset distribution in Russia.

On the conference call, we have commented that there was a general improvement in our operating environment in Q2, aided by seasonal and organic growth factors. The Group recorded 12% q-o-q revenue growth to over $2.0 billion US dollars, driven by 2.8 million new subscribers and a seasonal improvement in usage.

Group OIBDA increased by 15% q-o-q to $953.8 million. Margin on our service revenue was over 50% as growth was aided by the seasonal pick-up in revenue, tighter cost control on SG&A expenses and the appreciation of the Russian ruble during the period. As we have forecasted, our build-out of our monobrand retail has put additional cost pressures on our margins, with the cumulative negative effect on the Group margin of 3.4 percentage points for a total margin of 47.2%. We witnessed significant improvement in the profitability of our Ukrainian business unit as well.

Our revenues in Russia grew 9% q-o-q to 51 billion rubles due to strong subscriber additions and a positive impact from seasonal usage. We are seeing significant subscriber additions through our greater use of alternative sales channels, such as temporary stands, kiosks and so forth. At the same time, we are currently in the build-out stage of our monobrand network, which delivers higher-value customers as ARPUs are 20% higher on average.

Given the changes we see in our markets and the initiatives by which we are fostering growth in our markets, we also elaborated on our strategic direction, introducing our concept of 3i to our shareholders. 3i focuses on three principles that will govern future growth at MTS: integration, Internet and innovation. Be sure to check out our presentation for more information.

With the disclosure behind us, we will be posting more information here on our blog about our new monobrand stores and overall retail strategy, as well as updates about our proposed acquisition of Comstar-UTS, in the coming weeks. Будем на связи (Budem na svyazi!), or we'll be in touch soon!

Tags: , , , , , , , ,

MTS APPLYING ALTERNATIVE ENERGY TO BASE STATIONS

среда, июля 15, 2009

Windmill powering base station in Karelia, Russia.

In our continuous efforts to improve operating efficiency, MTS is increasingly looking towards alternative solutions to minimize energy consumption. In the coming months, MTS will install pilot base stations in the Crimea peninsula in the Southern Ukraine that will be powered by environmentally friendly wind generators. We have purchased wind turbines from the US-based Bergey Windpower and have already begun the deployment.

In line with our reputation for innovation, MTS is the first operator in Ukraine to explore the potential of energy solutions friendly to the environment. The first base stations will be installed in Crimea and later in the Western Ukraine, as strong winds in these regions are present throughout the year. Such alternative energy solutions allow us to economize spending as electricity costs rise or deploy network solutions in areas underserviced by a lack of power infrastructure.

We have long been exploring alternative energy sources in Russia. For instance, as pictured above, one of our base stations in the northern Karelia region is powered by wind, while in the southern Krasnodar region we have deployed solar cells. In the Moscow region, we are testing unique solutions with hydrogen power cells.

Tags: , , , , , ,

3G IN THE MOSCOW UNDERGROUND

четверг, июля 09, 2009

Today we have brought 3G to the underground world of Moscow. The first 3G network in the Moscow Metro was launched on Universitet station, named after the nearby Moscow State University.

Moscow Metro is the main public transport of the capital carrying about 9 mln passengers on a typical week day (2008 data, source: Moscow Metro Annual Report 2008). We are certain that gaining access to fast data connections through 3G will appeal to passengers, as they can read the latest news, send emails or browse the Internet using their mobile devices. In order to spur the uptake in familiarity and usage of 3G-enabled services, we decided to launch the first phase of the network on the station where the younger educated crowd is commuting to one of the most prestigious universities in Russia. In fact, we have noticed that in the Russian cities where 3G networks have already been launched, students and young people are some of the heaviest users of the new services enabled by 3G.

Our CTO Andrei Ushatskiy noted today that MTS was the first operator to bring mobile networks to the Moscow Metro in 2000, and that we continue to bring innovative solutions to our customers traveling underground. We are planning to expand 3G networks in the Moscow Metro and cover all the stations on one of the busiest lines, Koltsevaya (Ring Line), during this Fall.

For more information about our 3G network expansion in Russia, please see our post from June 22.

Tags: , , , ,

RECENT MTS ADS

вторник, июля 07, 2009

Here are the two MTS ads that are currently airing in Russia - one about the joint launch of Nokia N97 and the other touting summer roaming offers. Check it out!



Tags: , , , ,

3+1 PROJECT IN BASHKIRIA

среда, июля 01, 2009
Today we have launched a unique pilot project in the Republic of Bashkortostan (Bashkiria), whereby subscribers are offered mobile and fixed telephony as well as broadband Internet services under the MTS brand on a single bill. These services are provided on an opt-in basis to both private and corporate subscribers, offering the ease of use of a single billing system and the greater affordability of the bundled solution.

In Bashkiria, we have deployed one of the fastest broadband solutions currently available, FTTC / VDSL2, with download speeds of up to 100 Mbit / second. This type of connection allows us to bring a multitude of services to subscribers, including HDTV, broadband Internet and fixed telephony. We aim to launch IPTV services in Bashkiria this year as well.

We are the first company in Russia to offer one bill for mobile services, fixed telephony and broadband Internet. We are launching a range of tariff plans for each service with discounts for choosing multiple options. For instance, subscribers to all three services will have a 20% discount on the total bill, and subscribers to two services will get a 10% discount.

We have been developing convergent solutions in Bashkiria since the acquisition of Bashcell in late 2007. Bashcell had the licenses and the networks to provide fixed-line telephony and broadband access, which we have since successfully upgraded to offer best-in-class bundled solutions.

The pilot project in Bashkiria will help us test the demand for convergent solutions in Russia and develop a better customer proposition for future deployment in the country. Given the low penetration of broadband and the reputation of our Company, we believe that bringing high-speed Internet service will be one the key drivers of our growth in the future.

More information about the 3+1 tariffs and services is available here (in Russian).


 

Tags: , , ,

Recent Tweets

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

Twitter октября 17, 10:23
Alexey Kornya, CFO: Russian #telcos take advantage of a less stable banking system to push new #fintech products https://t.co/T1RAwumrZd

Twitter октября 17, 10:16
MTS Belarus continues expansion of LTE network https://t.co/VpQJ2QdG5R

Twitter октября 12, 17:27
$MBT Alexey Kornya, CFO: We need fancy new products to charm customers. https://t.co/PMUDTXpduF

Twitter октября 12, 15:04
$MBT named the Brand of the Year by 2017 @WorldBranding Awards.

Twitter октября 10, 13:11
$MBT provides $IAAS to #BAT Russia https://t.co/tUbqiwfzrt

Note: For Customization and Configuration, CheckOut Recent Tweets Documentation