MTS and VimpelCom to Increase Mobile Internet Speeds Through Spectrum Sharing in 20 Russian Regions

18 December 2015

Moscow, Russian Federation – Mobile TeleSystems PJSC (“MTS” or "the Company" – NYSE: MBT; MOEX: MTSS), the leading telecommunications provider in Russia and the CIS, and VimpelCom PJSC (the Beeline brand) announce the expansion of their far-reaching partnership to jointly construct and utilize LTE networks in Russia. The Companies have agreed to share LTE spectrum in the 2600 MHz range in 20 Russian regions beginning in 2016. Spectrum sharing will allow operators to double data transfer speeds available to the subscribers at peak speeds of 150 Mb/s.

MTS and VimpelCom have signed an addendum to their agreement on joint planning, development and usage of LTE networks, which they signed in 2014. Both companies plan to start utilizing the 10 MHz bandwidth each of the operator owns in 20 Russian regions upon obtaining all required permissions in the second half of 2016. These regions include: Vologda region, Kaliningrad region, Kaluga region, Murmansk region, Nizhny Novgorod region, Omsk region, Orenburg region, Orel region, Pskov region, Sakhalin region, Tula region, Yaroslavl region, Altai Republic, Kabardino-Balkar Republic, Karachay-Cherkess Republic, Chechen Republic, Ingush Republic, the Republic of Mordovia, Chuvash Republic, and Khabarovsk Krai. In these regions, shared spectrum of 20 MHz will be utilized by each base station that is jointly operated by MTS and VimpelCom. The addendum expires at the end of 2021 and can be extended and expanded to cover more regions.

Andrei Dubovskov, MTS President and CEO, commented, “The first results of the joint project with VimpelCom to develop LTE networks have exceeded our expectations. In the regions, where we installed and jointly operated base stations, we have increased the number of LTE subscribers by 30% faster than average pace of growth throughout Russia. We have also managed to reduce the costs of construction and joint network usage by 10-15% compared to our initial estimates. With spectrum sharing, we will able to bring mobile broadband to remoted areas even faster and realize more efficiencies. We are grateful to the Ministry of Communication and Mass Media for the timely decision, which will help operators to increase data transfer speeds and speed up construction of the state-of-the-art telecommunications network while reducing costs.”

VimpelCom Russia CEO Mikhail Slobodin said, “The first year of partnership with MTS for joint operation of networks proved highly effective and promising. We are satisfied with the quality of cooperation between our companies and convinced that the share of frequency range and the entire infrastructure will provide the best quality of 4G/LTE services in larger areas and deliver the best user experience. We also praise Russia’s Ministry of Communications and Mass Media for the preparation of the regulatory framework and the adoption of laws that enable us to double the peak speed of mobile internet by combining the frequency spectrum in future.”

On December 19, 2014, MTS and VimpelCom announced the signing of a partnership agreement to jointly plan, develop and use LTE networks in Russia. Under the agreement, in 2014 – 2016, MTS is developing shared mobile data networks in 19 regions in Russia, while VimpelCom is constructing networks in 17 regions. Under the agreement, operators are sharing base stations, sites, transport networks and other infrastructure in 36 regions. The agreement was signed for a period of seven years and can be extended. The agreement doesn’t preclude either company from developing their own networks to ensure LTE coverage in the designated regions. During 2015, jointly operated LTE networks have been launched in 31 regions.

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems PJSC
Tel: +7 495 223 2025

Learn more about MTS. Visit the official blog of the Investor Relations Department at

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Mobile TeleSystems PJSC (“MTS” - NYSE:MBT; MOEX:MTSS) is the leading telecommunications group in Russia, Central and Eastern Europe. We provide wireless Internet access and fixed voice, broadband and pay-TV to over 100 million customers who value high-quality of service at a competitive price. Our wireless and fixed-line networks deliver best-in-class speeds and coverage throughout Russia, Ukraine, Armenia, Turkmenistan, Uzbekistan and Belarus. To keep pace with evolving customer demand, we continue to grow through innovative products, investments in our market-leading retail platform, mobile payment services, e-commerce and IT solutions. For more information, please visit:

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” and the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.

Contact investor relations:

+ 7 495 223 20 25

MTS Investor Relations
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