The History of MTS
Business Strategy
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Business Strategy

MTS’ primary goal is to maintain its position as a leading wireless operator in Eastern Europe and Central Asia. Additionally, the Company seeks to take advantage of opportunities to expand its network coverage in the Russian Federation and other countries, particularly within the Commonwealth of Independent States (CIS).

In 2006, MTS also adopted a new corporate strategy which will take the Company into the next stage of its evolution. This new strategy, subsequently updated in 2007 as MTS’ 3+2 Strategy, will enable MTS’ organization and new management structure to continue to effectively deliver on the Company’s goals and objectives in the coming months and years. This includes:

  • Delivering more for our customers
  • Possessing the leading communications brand in the CIS
  • Creating exceptional shareholder value

Our 3+2 Strategy is organized along the following principles:

1. Capture growth potential in our core markets

As MTS core markets in Russia and Ukraine mature, MTS commits itself to driving revenue stimulation, delivering superior quality and providing a unique customer experience to differentiate itself from its rivals.

2. Value creation in developing markets

With a market portfolio that ranges from single-digit wireless penetration to levels exceeding 100%, MTS continually seeks to drive market growth in the CIS region, enlarge our footprint and evaluate other business opportunities either distinguished by geography or additional commercial areas.

3. Development of mobile broadband in the CIS

As our markets demonstrate relatively low levels of fixed-line penetration, MTS views its networks as an ideal vehicle to meet the growing broadband internet needs of our subscribers through attractive data products and services.  Currently, MTS possesses 3G licenses in Russia, Uzbekistan and Armenia, while it currently operates a CDMA-450 network in Ukraine to provide high-speed data access for its clients.  With its launch in Ukraine in 2007, MTS became the region’s first operator to offer Blackberry enterprise services to its subscribers. MTS intends to launch similar services in Russia in 2008.

+1  Cost efficiency

Beginning with its benchmarking program in 2006, MTS maintains a continuous focus on cost and process efficiency. Through its Group organizational structure, MTS aims to create synergies throughout its markets of operation, develop linkages throughout the company to take advantage of shared experiences and exploit technology solutions on an enterprise basis.

+2  MTS Group development

As a leading employer in each of our markets of operation, MTS recognizes the need to develop our Group structure, the necessity of attracting and retaining best-in-class employees and the importance of nurturing a distinctive corporate culture.

In sum, our strategy at MTS is simple: deliver more for our customers, shareholders and employees.