MTS blog


Monday, December 29, 2014

We have issued a report on mobile retail in Russia during Q3, based on the estimates from our mobile retail network.

Highlights from the report:

- In Q3 2014, the number of phones sold in Russia increased by 5.2% compared to Q3 2013 with 12.26 mln devices sold

- In Q3 2014, the mobile handset market in Russia expanded by 12.1% in sales compared to Q3 2013 to reach RUB 67.99 bln

- In Q3 2014, the smartphone market increased by 38.7% compared to Q3 2013 with 7.51 mln smartphones sold

- In Q3 2014, the smartphone market expanded by 21.9% in terms of sales compared to Q3 2013 to reach RUB 60.10 bln

Please download the complete report here

Retail Report Q3_2014.pdf (1.58 mb)


Mobile | Retail, devices | Russia


Monday, August 05, 2013

We have issued a report on mobile retail in Russia during Q2 2013, based on the estimates from our mobile retail network. 

Highlights from the report:

- During Q2 2013, the number of phones sold in Russia decreased by 3.3% compared to Q2 2013 with around 8.9 mln devices sold
- During Q2 2013, the mobile handset market in Russia expanded by 17.0% in sales compared to Q2 2013 to reach RUB 49.3 bln 

- During Q2 2013, the smartphone market increased by 56.6% compared to Q2 2012 with 3.9 mln smartphones sold

- During Q2 2013, the smartphone market expanded by 50% in terms of sales compared to Q2 2012 to reach RUB 39.5 bln  

-  At the end of Q2 2013, MTS retail network comprised 4,184 stores, including 1,308 franchised outlets. 

Please download the complete report here

Mobile Retail Report Q2 2013.pdf (574.74 kb)


Russia | Mobile | Russia


Thursday, February 21, 2013

With great excitement we watching recent developments in the regulation of the Russian capital markets aimed at making Russia more attractive a destination for foreign investors. 


On February 07, 2013, the international clearing system Euroclear Bank started direct settlement of Russian ruble-denominated government debt (OFZ). This long-expected move opens OFZ market to foreign investors. It has become possible after creation of the central securities depository – the National Settlement Depository (NSD) - and the creation of a direct link between the NSD and Euroclear Bank. Initially, Euroclear will be operating in OTC mode. Full-scale operations, including exchange-traded transactions, are expected to commence in March 2013 upon the establishment of a bridge with the Moscow Interbank and Currency Exchange (MICEX), Russia’s leading trading platform. The Euroclear Bank/NSD link will also enable clients of each depository to settle cross-border transactions easily.


As a Barclays analysts pointed out in a recent note, foreign presence in the Russian government debt market currently stands at 14% - which is relatively low compared to 25-30% in other emerging markets. In 2013-2015, Barclays expects inflow of foreign investments in OFZ triggered by Euroclearability to increase up to $25-40 billion from just $9 billion in 2012.


According to the comments made by Chairman of Euroclear Bank Frederic Hannequart upon the launch of OFZ settlement, Russia’s corporate and municipal debt might become eligible for settlement within a month.


On February 13, 2013, Clearstream, another leading international securities depository, announced plans to open direct settlement link to the Russian market following the opening of a main account at the NSD in February 2013.


The next logical step would be enabling international securities depositories to settle trades with the Russian equities. A number of encouraging comments in this regard were made by senior Russian officials last week.


According to the Deputy Head of the Federal Service for Financial Markets (FSFM) Yelena Kuritsyna, the Ministry of Finance and the FSFM are discussing aligning the date when equities become eligible for Euroclearability with the date when the limit for international circulation of Russian shares is cancelled. Current regulations limit depositary receipts conversions to 25% of a Russian company’s shares and 50% of their listed stock. In 2011, President Dmitry Medvedev signed a decree to lift curbs on Russian company’s shares abroad. According to the Deputy Head of the FSFM, both changes in the regulation are slated for July 01, 2014. However, Minister of Finance Anton Siluanov said last week that “in his personal opinion” access to Russian local equities for Euroclear/Clearstream will be open even earlier - from January 01, 2014


Overall, recent developments showcase a great deal of progress towards the alignment of the regulation of financial markets in Russia with international standards. With the modernization of capital markets’ infrastructure being high on government’s agenda, Russia’s equity and debt markets are likely to benefit from an inflow of foreign investments.  In turn, this can also stimulate much-need domestic investment through both liberalization of current regulations and the increased attractiveness of Russian capital markets.


Russia | Russia


Monday, January 28, 2013

MTS has completed modernization of the fiber-optic line between Moscow and St. Petersburg increasing its capacity 10 times from 400 Gb/s up to 4000 Gb/s. This intra-city network is vital for overall operation of the MTS’s mobile and fixed network as it provides for downloading data from many of the internet resources located outside Russia. Whether it’s an MMS sent from London to Moscow, or someone in Nizhny Novgorod watching a clip on youtube, the traffic is likely to go through this channel. Daily traffic in this line already exceeds one Petabyte, a third of total traffic in the MTS intra-city networks. 


The increase in the throughput was prompted by the growing pressure on our networks from skyrocketing data traffic. At the end of 2012, our networks were transferring 2600 Terabytes per day, or 200 times the amount of data stored in the Russia’s National Library. Two years from now we expect the penetration of smartphones to rise up to 60%. Proliferation of smartphones, coupled with the roll-out of LTE networks in major cities will trigger annual data-traffic growth of four-five times. Hence, the need to invest in upgrading capacity of intra-city “arteria” that will satisfy the growing demand for data.  


MTS’s fiber-optic network already encompasses over 140,000 km of lines. We continue to increase the network by building our backbone and backhaul networks and rolling-out GPON project in Moscow. In 2013, we also plan to enhance the capacity of the Moscow-Yekaterinburg line and conduct modernization of the intra-city lines in the Southern regions in order to increase data traffic exchange with Ukraine, the axis which is also used for data transfer from and to the Western Europe.  


Mobile | Russia


Monday, January 21, 2013

On December 3, 2012, MTS sponsored “Russia Day” at the New York Stock Exchange, an annual gathering of Russian and American business leaders designed to promote Russian companies among international investors. With the rapid maturation of Russia's largest companies, Russia Day has become an opportunity for both sides to review the past year's milestones in trade, regulation and market development.


Across multiple forums, MTS's CEO Andrei Duboskov came bearing a single message:  the NYSE should be more actively communicating to the Russian business elite that the liquidity benefits of being listed on the NYSE will maximize asset value while expanding opportunities for growth and development.  At the same time, Russian companies should embrace the stronger management and governance standards espoused by the Exchange.  This level of partnership will in turn greatly improve many of the misperceptions about Russia and the Russian economy held by a wide range of market participants.


Photos and videos of the event, which featured 200 U.S.-based institutional investors, executives, advisers, global media and government officials in attendance, can be found at the NYSE website. Speakers included: Vladimir Dmitriev (Chairman, Vnesheconombank), Igor Zyuzin (Chairman, Mechel), Kirill Dmitriev (CEO, Russian Direct Investment Fund), Mattias Westman (Founding Partner, Prosperity Capital), and Gokhan Saygi (President Russia and Central Asia, Schlumberger). The event concluded with its principal attendees at the closing bell ceremony


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Thursday, October 04, 2012

Dmitry Panfilov, MTS Director for Financial Services, was interviewed by MasterCard blog. He spoke about NFC contactless payments project launched in May 2012 by MTS and MasterCard. The benefits of a cashless society are countless – from safer money transactions to more convenient and quicker purchase processes. MTS looks forward to actively promoting the NFC PayPass technology in Russia together with MasterCard.

Click here to wacth  the video interview.

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Mobile | Russia


Tuesday, September 04, 2012


In September 2011, MTS and Vimpelcom signed an agreement on strategic cooperation in construction and use of the telecommunications infrastructure. At the end of July 2012, the two companies had already rolled-out 2,851 km of fiber-optic lines across Russia; by the end of the year the operators plan to jointly construct and share an additional 8,000 km of fiber-optic lines.


In 2011, the two operators installed 433 base station towers, which significantly expands coverage of 3G networks in geographically remote areas. MTS and Vimpelcom are also conducting joint maintenance and repair of air conditioning and ventilation systems in communication facilities in Russia’s Volga, Southern, and North Caucasian federal districts. The cooperation will also soon expand into the other regions where companies are in the final stages of selection of the service providers.


This cooperation allows both operators to accelerate the modernization of telecommunications networks and reduce capital investments by at least 50 percent. According to the MTS’s estimates, joint procurement of services, maintenance and repairing of the networks in the framework of this project will result in reduction of costs by 20% over three years.


By the end of 2012, the total length of the MTS’s fiber-optic network will amount to 130,000 km with a capacity of up to 400 Gbit/s.




Thursday, August 16, 2012


Russia has the largest online population in Europe – 60 million – and 15 million online shoppers. According to the data presented at the “RIF + KIB 2012" conference, there are 30,000 online stores in the Russian Internet. In total they generate $9 billion per year or 1.5% of all retail sales in Russia, which is four times less than in the U.S. and three and a half times less than in Europe. Yet the Russian e-commerce market is growing 30-50% each year and is projected to reach $16 billion by 2016.

MTS stands to tap this potential by enhancing capabilities of its online store is leveraging its resources as the second largest mobile retail network in Russia with streamlined logistics chains connecting 2,500 stores in over 1,000 population centers. In the first half of 2012, online sales doubled driven by the rising demand for smartphones. Smartphones currently account for 70% of online sales, portable electronic devices (including notebooks, tablets, e-readers, cameras) generate 15% of sales, basic and feature phones account for 12% of sales, and the remaining 3% of sales consist of accessories. In the first half of 2012, MTS expanded its portfolio of devices by making 300 models of phones and smartphones and over 650 models of portable electronic devices available online.

MTS delivers orders made online to 80 of Russia’s 83 regions. Most popular among customers is MTS’s “pick up in store” service, which accounts for 85% of orders. Currently, purchases are delivered “to the door” in 14 of Russia’s largest cities, but given the rising appetite of Russian customers for online shopping, the list of these cities is set expand quickly. 

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Mobile | Mobile | Russia | Russia


Friday, June 01, 2012

We wanted to share with you a great movie Ericsson filmed about the role they played in MTS’s 3G roll-out. Ericsson was one of the vendors that MTS retained to ensure that the ambitious goal of covering 80% of Russia’s populated territory with 3G network is attained within the shortest possible timeframe. MTS obtained its 3G license in 2007, and launched services in major cities like St. Petersburg and Moscow in 2008-2009.  Yet the large-scale, nationwide roll-out of our 3G network didn’t begin until the second half of 2010. MTS has since installed 23,000 base stations, covering 14,000 population centers across Russia. The project required mobilization of significant resources within the company since nearly 5,000 employees were actively involved in planning the roll-out, identifying locations for sites, ensuring that proper paperwork was completed, connecting base stations to transport networks and overseeing construction carried out both by our strategic vendors - Ericsson, NSN (Nokia Siemens Networks) and Huawei - as well as their network of subcontractors. NSN focused their efforts on Moscow and Central Russia, Huawei was hard at work in Russia’s Far East while Ericsson - as this video attests - delivered 9,000 base stations across Russia.


The 3G build out continues into 2012 as we aim to reach our goal of 28,000 base stations, but the deployment of the network has already translated into dramatic increases in data traffic - from 70 Mb per user month in Q1 2010 to 455 Mb in Q1 2012. Furthermore, data traffic revenues have doubled during this period.

Click here to view the video on our youtube channel.

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Mobile | Russia


Thursday, May 17, 2012

Alexander Popovskiy, MTS Vice President and Chief Operating Officer, today met with analysts at MTS’s exhibitor stand at SvyazExpocom, a communications-themed trade exhibition in Moscow. Alexander demonstrated modems connected to the MTS’s LTE test zone, capacity of GPON network currently being deployed in Moscow, and PayPassTM, contactless NFC payment technology MTS has launched in partnership with MasterCard®. See below the slides he used in support of his discussion.





This vending machine is equipped with contactless NFC PayPassTM system from MasterCard®. Starting May 2012, SIM cards equipped with NFC antennas and MTS Dengi credit cards are distributed in the MTS retail network. 


SvyazExpocom slides.pdf (599.21 kb)


Russia | Mobile | Russia

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