Friday, September 23, 2016
MTS and the global technology holding company LeEco signed a partnership agreement, which not only fosters the sale and promotion of LeEco smartphones in MTS’ retail network, but also a close cooperation in a wide range of internet-related services. MTS and LeEco will jointly develop and promote content-based services, as well as entertainment, informational, trade, financial, transport and other types of e-commerce platforms and services.
LeEco has the highest market capitalization in the video-related industry in China and is the first IT company in China to own a top-3 film studio, Le Vision Pictures (LeVP), by box office revenues. In 2016 LeVP launched 1,000 cinemas across China. Le.com’s attracts an audience of more than 800 million each month. Its E-commerce platform, LeMall, is the third internet retailer in China by traffic.
Friday, September 23, 2016
We are pleased to share with you a new report on M2M/IoT Market in Russia we produced using MTS’s proprietary data for H1 2016. The key highlihgts of the report are the following:
- Russian M2M/IoT market as of H1 2016 increased 33% from RUB 225 bln to RUB 300 bln year-over-year;
- Market growth has been driven by demand for Big Data solutions. Sales growth can be attributed mainly to devices and apps for analyzing big volumes of data (the share of which grew by 2 percentage points to 55%), software for data analytics (share growth of 1 percentage point to 27%) and to platforms for SIM-cards intellectual management (share growth of 3 percentage points to 20%). On the other hand, simple telematics solutions showed no growth and constituted 1% share in operators’ sales on M2M/IoT market;
- M2M SIM-card market in Russia grew in volume by 30% to 7.8 mln from 6 mln in the previous year. MTS’ share was 52%. MTS served 4 mln M2M SIM-cards by the end of H1 2016, an increase of 25% from H1 2015;
- Total revenue from IoT solutions increased by 1.7x, which reflects an increased contribution from service platforms and software, as well as from sales and maintenance of equipment carried out by MTS’s wholly owned subsidiary, NVision Group. LTE-based products show the highest growth, together with service platforms and software for data analytics from M2M gadgets; overall sales tripled last year;
- Traffic from telematics services on MTS LTE network by the end of H1 2016 increased by 1.6x from H1 2015; 3G-based solutions grew only by 7% and those using 2G-only network solutions decreased by 5%.
You can download the report below.
MTS M2M Report - H1 2016.pdf (888,92 kb)
Thursday, September 15, 2016
MTS and Nokia announce successful results that reached record-breaking Internet speeds of 4.5 GB/sec at 200 MHz during 5G trials in Russia.
During trials in MTS’s laboratory, in the presence of journalists, a video clip filmed in 8K Ultra HD (7680x4320) quality on Harley Days festival in Saint-Petersburg, was streamed live on big screen using Nokia equipment, while the guests enjoyed the experience enhanced by Virtual-Reality headsets.
The maximum downlink speed was 4.5 GB/sec, meaning that a 1GB file can be transferred in less than 2 seconds. That entails that a CD-album in Hi-Fi quality can be downloaded in less than 1.5 seconds and a full-HD 1-hour video film can be downloaded in 14 seconds.
The tests were carried out on Nokia’s AirFrame and AirScale equipment using 4.65-4.85 GHz spectrum through two aggregated 100 MHz transmitters in the same configuration as would be used in a commercial deployment in a high density environment. For the first time in Russia, a MIMO 8x8 technology was used with 8 antennas on each of the devices and with the support of multi-channel video streaming. This technology increased data transmission speed by times when compared to current LTE-standards.
Monday, August 29, 2016
MTS announces the launch of its mobile app “MTS Money”, which enables customers to upload virtual banking cards, tickets for public transportation in Moscow and discount coupons to their NFC-enabled smartphones.
After installing the service on the smartphone via Google Play, MTS subscribers will be able to upload their “MTS Money” banking card into the app or register a new one without visiting MTS offices. The balance of the card can be replenished directly through the app from the cards of other banks, from a subscriber's mobile account or through MTS payment terminals. From that moment on, customers will be able to pay for goods and services in any store throughout the world, equipped with contactless POS readers, using only their smartphones. Over time, customers will be able to upload banking cards of other Russian banks as well.
Tuesday, August 09, 2016
MTS and Huawei, a global leader in ICT solutions, signed a partnership agreement, by which Huawei will supply a broader range of smartphones and other consumer electronics devices for sale through MTS’s network of over 5,700 retail outlets. The agreement increases the sale of devices under the Huawei and Honor brand, some of which will be available to MTS customers on an exclusive basis.
“MTS is a natural partner for the world’s leading device manufacturers - we not only provide the capabilities of a traditional operator but we can match our reach with the country’s largest retail footprint. We want to leverage this to provide customers with richer choices and allow our partners the broadest and most valuable channels for distribution. Partnering with Huawei too can position ourselves and our customers at the forefront of change as the Internet-of-Things becomes more of a reality," remarked Vice-President, Sales and Services, Kirill Dmitriev.
"Huawei believes the Russian market is strategically important, we want more Russians to use our products. Together with MTS we will be able to get closer to our regular and potential customers. The guaranteed high quality of our smartphones will be supported by leading services of the operator. We are confident that our cooperation will allow us to strengthen our position in the market,” added Vice-President, CEO, Huawei Consumer Business Group Russia, Ou Yiwei.
Under the new agreement, MTS customers will be among the first to have access to new products from Huawei. Huawei and MTS intend to introduce more than 10 new mobile devices under the Huawei and Honor brands into MTS’s retail network, including flagship models such as the Huawei P9.
In the first half of 2016, Huawei sales in retail of MTS has increased 10 times compared to last year. In 2015, Huawei demonstrated the world's highest growth rates of smartphone sales - +44% year-on-year in units - and finished the year among the top three most successful sellers of smartphones with a share of more than 7% in units according to IDC. In 2016, the growth rate of global Huawei sales has so far accelerated.
Monday, August 01, 2016
MTS will launch a new, easy-to-use, payment system, allowing customers to leave their cash and bank cards at home. MTS subscribers will be able to make payments from their mobile accounts in a variety of stores or cafés. The system requires customers to provide their mobile number to the cashier and the transaction will then be confirmed by SMS. The designated stores will have to use special MTS POS-terminals, although MTS will gradually integrate this payment service into traditional POS-terminals that are in current use.
MTS will earn a commission from every transaction while increasing its share of loyal customers, given that the churn rate is 25% lower among customers using both mobile and financial services.
The service will be introduced in Moscow and, by the end of the year, in Ekaterinburg.
In 2015, the mobile commerce turnover from MTS mobile accounts increased to RUB 14.6 bln from RUB 12.8 bln in 2014, while the number of users increased from 2.6 mln in 2014 to 3.1 mln in 2015.
Thursday, July 21, 2016
MTS carried out a research on the traffic generated by Pokemon GO players in Moscow and Moscow region.
Currently there are around 69,000 active players among MTS customers in Moscow and the Moscow region. According to MTS’s analysis, there are more than 180,000 Pokemon GO players among the Big 3 operators. Each day, the total number of players grows by 30-35%.
Customers tend to seek for the Pokemons mostly at 8.00-10.00 in the morning and between 18.00 and 23.00 at night. On average, users download around 5 MB of traffic per hour when playing. The average daily traffic per user is limited to 30 Mb.
During the last 7 days, MTS received more than 2,000 calls in the call-center from customers asking for help with installing the game on Apple smartphones and around 10 calls asking for specific Pokemon locations.
P.S.: Investors are welcome to visit MTS offices, where it is rumored that a Charizard and Bulbasaur have been seen lurking in the hallways.
Thursday, July 07, 2016
We have recently released a report on MTS retail network in Russia for H1 2016.
You can download the report by the link below.
H1_2016_Retail_report.pdf (322,48 kb)
Friday, July 01, 2016
MTS carried out a research on the use of services by our customers, while traveling inside Russia during the beginning of summer tourist season in May and June of this year.
The number of tourists traveling within Russia increased by 11% compared to the same period last year. Meanwhile, the number of data-users among those who travel increased by 21%. Data traffic itself increased by 96%, the volume of outcoming calls increased by around 90% and SMS-usage increased by 40%. These numbers reflect the fact that subscribers are using more data in roaming, due to MTS's more transparent voice & data (V&D) “Smart” tariffs, which today represent more than 50% share of tariff sales through MTS’s proprietary retail distribution. Another major factor for the increase in data-usage is the fact that MTS boasts the largest LTE-coverage by regions. According to data published by Roskomnadzor, the Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications, MTS has the highest number of LTE base stations and the fastest mobile broadband in Russia.
Moscow remains the leading city in terms of tourists, and data-traffic volume in Moscow has increased by 2.5x year-over-year, a result driven by a twofold-increase in mobile internet speeds compared with last year.
Thursday, June 23, 2016
In June 2016, the share of LTE-enabled smartphones in sales all over Russia exceeded 50% for the first time. In May 2016, Russian retailers sold 2.6x more LTE-enabled smartphones than a year ago. This achievement can be attributed to the fact that the average price of an LTE-enabled smartphone declined by 20% y-o-y to RUB 18,200.
In MTS’s retail network, sales of LTE-enabled smartphones broke through the 50% barrier in April 2016, while in May, LTE-enabled smartphones represented around 52% of total smartphone sales.