LIGHT READING TALKS TO VASYL LATSANYCH

Tuesday, February 10, 2015

Light Reading’s interview with Vasyl Latsanych, our Chief Marketing Officer is an interesting discussion focussing on the differentiation in our 3D strategy (data, differentiation, dividends) and the resilience of our business against what is a challenging macro-economic backdrop. Using our Q3 2014 figures the interview highlights our leadership in mobile, with the largest subscriber base and fastest subscriber growth year on year among the Big 3 and our continuing track record in growing smartphone sales and their penetration as a percentage of all mobile phones on our network towards the 40% level in 2014- which we are doing by developing our own branded high quality devices cost efficiently in partnership with manufacturers as well as continuing to expand our 4G and LTE networks.

Vasyl explains how the broadband opportunity in Moscow is at the core of MTS’s differentiated story. We have been replacing copper with state of the art GPON since 2011 and aim to convert 90% of MGTS’s 4.4 million lines in Moscow and the region by end 2015, over 80% of all Moscow households. As well as enabling high speed broadband, Vasyl says the GPON network will provide a platform to launch more sophisticated IPTV services, incorporating video-on-demand and catch up programming which will be more intuitive, simpler to use and better value than the services our competitors have at present. The interview picks up the importance of our differentiation in this area to our top line performance, driving overall Q3 2014 fixed line revenue growth of 2.6% year on year.

The article also puts our satellite TV strategy into context, with some 18.6 million Russians expected to use satellite TV by 2018, up from 13.1 million in 2013 and Analysys Mason citing our plans for nationwide pay-TV coverage in rural areas as a clear advantage.

The success of our unique approach to mobile financial services is also highlighted as a key differentiator and Vasyl sees a potential in further combining our mobile and banking activities and in fusing our satellite and 4G technologies as we continue to roll them out.

Light Reading concludes “If MTS can build a compelling advantage through service and technology convergence, while avoiding the margin pressure that service bundling entails, its investors will certainly have reason for cheer.”

You can view the full article here: http://www.lightreading.com/services/mobile-services/mtss-russian-resolution/d/d-id/713284?print=yes

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