The MTS company was founded in October 1993 by OJSC Moscow City telephone network"(MGTS), Deutsche Telecom (DeTeMobil), Siemens and several other shareholders as a closed joint stock company. Four Russian companies owned 53% of the shares, two German companies - 47%. At the end of 1996, AFK Sistema acquired the stake from Russian shareholders, and DeTeMobil bought the shares of Siemens.
On March 1, 2000, as a result of the merger of MTS CJSC and RTK CJSC, OJSC Mobile TeleSystems" On April 28, 2000, the Federal Securities Commission of the Russian Federation registered the initial issue of shares of MTS OJSC. In the same year, the company entered the world stock markets. Since June 30, 2000, MTS shares have been listed on the New York Stock Exchange (in the form of American Depositary Receipts) under the symbol MBT.
Having started in the Moscow license zone in 1994, MTS received licenses in 1997 and began to actively develop in the Tver region, Kostroma and the Komi Republic. In 1998, MTS bought the Russian Telephone Company and together with it acquired licenses to build a network in the Smolensk, Pskov, Kaluga, Tula, Vladimir and Ryazan regions. By participating in the work of the ReCom company, MTS began building a network in the Bryansk, Kursk, Oryol, Lipetsk, Voronezh and Belgorod regions. The agreement concluded with the Rosico company allowed MTS to develop the GSM-1800 standard in another 17 regions of central Russia and 11 regions in the Urals.
In 2000, the MTS network began operating in the Amur and Yaroslavl regions, as well as in the Republic of Udmurtia. In 2001, the company continued its regional expansion and entered the north-west of Russia, acquiring the Telecom XXI company; in the same year, MTS expanded its network to seven more regions of Russia.
In April 2002, MTS acquired largest operator south of Russia "Kuban GSM", which made it possible to include the main resorts of the country in the MTS network. In October, MTS strengthened its presence in this strategically important region, announcing the purchase of another operator in the Southern Federal District - Dontelecom.
In the same year, MTS strengthened its position in the Urals through the acquisition of a local operator in Bashkortostan and the construction of networks in Perm and Chelyabinsk. In 2002, MTS networks were launched in Murmansk, Tambov, Arkhangelsk, Vologda, Tyumen, Nenets Autonomous Okrug Republic of Karelia and Altai. In October 2002, the company expanded its licensing portfolio: the acquisition of Bit LLC brought MTS licenses to provide GSM-900 mobile communication services in four regions of Russia - Tuva, Sakhalin Region, Chukotka Autonomous Okrug and the Republic of Kalmykia.
In June 2002, MTS launched a network in the Republic of Belarus.
In August 2003, MTS completed the acquisition of 100% of the shares of UMC, the leader in the Ukrainian mobile communications market.
Implementing a strategy of regional expansion, in 2003 MTS became the owner of a controlling stake in the largest operator in Tatarstan, TAIF-TELCOM. In addition, as a result of a series of transactions, MTS became the owner of 50% of the shares of Primtelephone (Primorsky Territory and Siberia), 50% of Astrakhan Mobile (Astrakhan Region), 50% of Volgograd Mobile (Volgograd Region).
In accordance with the consolidation strategy, the company increased its participation to 100% in the Kuban GSM company, to 88.5% in the Siberian Cellular Systems-900" (Novosibirsk region, Altai Republic), up to 99.85% in the Uraltel company (Sverdlovsk region).
Along with the acquisition regional operators cellular communication, MTS continued to build its own networks and in 2003 carried out their commercial launch in the Orenburg and Saratov regions, in the Altai Territory.
In 2003, MTS acquired 100% of the shares of a number of leading regional cellular operators: Sibchallenge ( Krasnoyarsk region, Republic of Khakassia, Taimyr Autonomous Okrug), Tomsk Cellular Communications (Tomsk Region), MarMobile GSM (Republic of Mari El).
In total, in February 2004, the licensed territory of MTS OJSC and its subsidiaries expanded to the entire territory of Russia, with the exception of the Penza region and the Chechen Republic.
In 2004, MTS began providing cellular communication services in the Irkutsk, Samara, Ulyanovsk and Kemerovo regions, the republics of Yakutia, Sakha, Buryatia, Chuvashia, Mari El, Mordovia; in the Stavropol Territory, Kamchatka and the Magadan Region, as well as, thanks to the acquisition of Sibintertelecom, in the Chita Region and the Aginsky Buryat Autonomous Okrug.
In March 2004, she increased her share to 99.5% in CJSC Siberian Cellular Systems - 900 (SSS-900), in April she increased her share to 91% in OJSC Mobile Systems Communications (MCS) in the Omsk region, acquired a controlling stake in Telesot-Alania, a cellular operator in the Republic of North Ossetia.
In 2004, she increased her share in CJSC Far Eastern Cellular Systems - 900 (DVSS-900) and OJSC TAIF-TELCOM to 100%. MTS became the owner of 100% of the shares of Primtelephone and CJSC Digital networks Udmurtia - 900 (TsSU-900), CJSC Astrakhan Mobile and CJSC Volgograd Mobile.
On July 16, 2004, MTS announced the acquisition of a 74% stake in Uzdunrobita, the largest mobile operator in Uzbekistan.
In 2005, MTS began providing cellular communication services in Turkmenistan, announcing the acquisition of Barash Communications Technologies, Inc. (BCTI).
In Russia, in 2005, MTS increased its stake in the following subsidiaries to 100%: Horizon-RT in Yakutia, Uraltel, Telesot-Alania, Sibintertelecom, ReCom.
In the same year, MTS began providing cellular communication services in Kalmykia, the Jewish Autonomous Region, the republics of the North Caucasus - Ingushetia, Karachay-Cherkessia and Kabardino-Balkaria; received a GSM-1800 license in the Chechen Republic.
In 2005, the company significantly expanded its portfolio additional services and was the first among Russian operators to offer subscribers a range of services based on LBS and RBT technologies.
In April 2006, Leonid Melamed, who previously held the position of General Director of the insurance company ROSNO OJSC, became the president of MTS OJSC.
In May 2006, MTS completed the restructuring of the company, within which the following management levels were created: corporate center, business unit, macro-region, region. The corporate center determines the overall strategy of the company, uniform standards, regulations and management procedures. Business units are responsible for achieving planned indicators (P&L). Macro-regions carry out operational management of the activities of regional branches. Today there are nine MTS macro-regions, each of which unites regional branches in several constituent entities of the Russian Federation.
In May 2006, at the Svyaz-Expocomm 2006 exhibition, MTS presented the updated brand of the company as part of the new end-to-end brand of the Sistema Telecom group of companies. “The visual solution chosen for the end-to-end brand - a simple and timeless symbol in the shape of an egg - very accurately conveys the essence modern technologies: external simplicity, which hides the fascinating complexity of the content,” MTS President Leonid Melamed commented on the event.
In June 2006, together with the “First” tariff, MTS introduced an updated line of tariff plans, where for the first time the “designer” principle was applied to tariffs without a subscription fee, which allowed users to “assemble” individual tariff plans, connecting at their discretion to basic tariff various services focused on the user profile of a specific subscriber. Developing its tariff portfolio, in 2007 MTS launched a credit system for paying for mobile communications on mass tariff plans based on the “Credit” service.
In July 2006, MTS acquired a controlling stake in Dagtelecom LLC, a cellular operator in the GSM-900 standard in the Republic of Dagestan.
In April 2007, MTS received licenses to build a 3G network in the UMTS format in Russia and Uzbekistan, a license to build a WiMax network in Uzbekistan, and frequencies for providing services in the 3G standard (UMTS) in Armenia.
In June 2007, MTS increased its stake in Uzdunrobita, a subsidiary in Uzbekistan, to 100%.
In September 2007, MTS acquired 80% of the shares of the leading Armenian operator K-Telecom CJSC (VivaCell trademark) and entered into an option agreement to purchase and sell the remaining 20% stake.
In October 2007, MTS became the first operator in the CIS to launch BlackBerry services. MTS Ukraine subscribers received a protected mobile access to corporate mail, applications and the Internet on modern smartphones BlackBerry.
In December 2007, MTS announced the acquisition of 100% of CJSC Bashcell (trademark BashCell), the cellular operator of the Republic of Bashkortostan.
In 2007, MTS provided communications to all metro stations in Moscow and St. Petersburg, where all MTS communication services, including data transfer services, became available to subscribers.
In January 2008, MTS launched commercial operation of the MTS GSM-900/1800 network in the Chukotka Autonomous Okrug. Thus, today the MTS network has been put into commercial operation in 82 of the 83 regions of Russia in which MTS has licenses to provide communication services.
Gadget manufacturers
The MTS company provides telecommunications services to the population of the Russian Federation and residents of other states of the former USSR. In recent years, it has also started producing phones under its own brand. In 2010, the company was named the most valuable domestic brand. Its cost was estimated at more than 213 million rubles. The company is based in the Russian capital.MTS and its history are inextricably linked with the emergence of the domestic GSM market. Back in Soviet times frequency range 900 megahertz was intended not for ordinary people, but for aviation purposes (including military ones). However, in 1990, the first indications were presented regarding the possibility of another use of the standard, and a year later tests were carried out, the results of which confirmed the fact that the specified frequency range can also be used for cellular communications.
In 1992, the creation of the GSM system was announced, as well as another fully automatic standard. In addition, a competition for the right to obtain a GSM-900 license was launched. The winner of this competition was a monopolistic association, on the basis of which MTS was created.
It all started in the fall of '93. The founders of the joint stock company differed markedly from the original members of the above-mentioned consortium. Among them were companies such as Siemens, DeTeMobil, as well as several domestic shareholders. Two companies from Germany received a smaller share of shares than the Russian side. The following year, the work of the new cellular operator’s network was presented, and the first BSS station was put into operation. Very soon the number of such stations was eight.
Three years after the founding of the joint-stock company, the customer base amounted to five thousand subscribers. In addition, the quantity base stations almost doubled. Soon Siemens sold its shares to DeTeMobil, and a stake in MTS was acquired by a well-known Russian financial and industrial group.
The year 1997 was marked by the fact that the company began to actively move deeper into the regions. To do this, it acquired other companies that already had the right to provide the appropriate communication services documented at the legislative level, or it issued licenses itself. In the same year, a 2-band section was created GSM networks. It should be noted that regional development progressed quite well (both in the Russian Federation and in the Urals). In total, the presence area increased to twelve, and later to seventeen regions.
In the late 90s, tests of WAP services were completed. In addition, the fee for incoming calls within the network was canceled, and per-second billing was established after one minute. By this time, the number of the operator’s subscribers had already exceeded one million people. In addition, the company continued its advance deeper into Russian regions, once again expanding its presence area.
By 2001, it provided services in twenty-one regions of the Russian Federation. Previously, the organization was awarded the title of Company of the Year. By the end of the summer of 2001, the subscriber base already amounted to two million people. Soon the company was present in almost three dozen Russian regions. In addition, she strengthened her position in the Urals. In the summer, the Belarusian network was also put into operation, and in the fall the first Jeans tariffs appeared.
In the summer of 2003, shares of the leading Ukrainian operator UMC were acquired. The company also made a number of other important strategic acquisitions. At the same time, it continued to build its own networks and launch them. Soon the subscriber base numbered more than fifteen million people. In mid-summer, the company also acquired a controlling stake in the largest Uzbek operator. The territory of MTS presence was rapidly expanding. By the beginning of the next year, it covered almost the entire country, with the exception of Chechnya and the Penza region (the company took care of this only a few years later). In addition, the company did not fail to expand into other countries.
The year 2006 was marked by rebranding. The initial purpose of this procedure was the need for a uniform design of all business units of the group. In just a year since the start of rebranding, MTS has become recognizable.
In 2007, sales of “smart” mobile devices of the brand began, and later - devices. The first operator in the former CIS countries to begin providing BlackBerry services was MTS Ukraine.
The purchase of other promising operators, including Armenian and Uzbek ones, also continued. The following year, it received the right to provide 3G services in the Russian Federation, and soon the corresponding network was launched in four Russian cities. A cooperation agreement was also signed with the largest British operator Vodafone. His goal was to expand the capabilities of both companies.
In the spring of 2008, the brand became the first domestic brand to be included in the Top 100 global brands. Very soon the company also became interested in other telecommunications areas. In addition, she focused on retail sales. By the end of the next year, its own network already numbered more than two thousand retail outlets.
The company has also managed to enter the Indian market. In mid-summer 2009, the subscriber base in seven countries already numbered more than 100 million people. In the same year, MTS became the only domestic telecommunications company that was certified according to the international ISO standard.
2010 and 2011 were also marked by a series of strategic acquisitions, contracts and agreements. The company has invested a lot of money in the development of broadband Internet access and entered into agreements with a number of large organizations. However, a particularly noteworthy event was the signing of a deal to purchase software with the American corporation Oracle and the domestic concern Sitronics. It was valued at $70 million, and was called one of the largest agreements in the Russian computer market. In 2011, the company also reduced call rates several times for its roaming customers, hoping to attract even more subscribers. Around the same time, the brand was recognized for the fourth time as the most expensive trademark in the Russian Federation. Let us add that according to research conducted by a well-known Polish organization, mobile communications of this operator was recognized as the most reliable in the Russian capital.
In 2012, the company provided its first solution based on , working together with MasterCard, as well as MTS Bank. Now owners of plastic payment cards of this financial institution could pay for goods and services by simply touching their mobile device to a special reader at the checkout.
In the summer of the same year, the company was among those who won the competition for a federal LTE license in the Russian Federation. Soon she made a number of other useful strategic acquisitions. Let us note that it has also strengthened its position on the territory of Turkmenistan.
2013 turned out to be no less productive. MTS has introduced many services and signed a number of agreements. In addition, she bought more than 25% of the shares of MTS Bank. In just a year, the brand value increased by more than 11%. In addition, the 4G network was expanded in the Russian capital. At the end of the same year, the company's turnover exceeded 398 billion rubles.
In mid-summer 2014, the operator was already working in all Russian regions. As for the customer base, it exceeded 107 million subscribers. This year has become a logical stage in summing up the company’s activities. Since throughout its existence, MTS actively acquired various operators, this allowed them to significantly expand the territory of their presence.
In addition, it has quite successfully advanced into various international markets, mainly in the countries of the former CIS. Thus, she managed to enter the Armenian, Belarusian, Ukrainian, Kyrgyz, Turkmen and Uzbek markets. By that time, Andrei Dubovsky, one of the key figures in the organization, continued to be the president of the company.
The future famous businessman was born in 1966 and graduated from VGIK. Starting at the age of twenty-seven, he began working in the telecommunications field and managed to gain extensive work experience. He has repeatedly held leadership positions in various organizations. He was appointed to the post of president of MTS in the spring of 2011. Previously, he held the position of director of the company’s branch in Nizhny Novgorod.
In addition to cellular communications, the organization provides Internet services, wired communication and so on. It is actively developing a retail network of branded communication stores throughout the Russian Federation. In the second half of 2013, their number exceeded four thousand (of which more than one thousand were flagship stores).
Previously, these outlets sold various models of mobile devices (like the MTS 736 slider), which are no longer produced. Today they mainly feature sensory devices. An example of such a device is the MTS 970 model, released in 2013.
It turned out to be a stylish black candy bar with rounded edges, working in three GSM bands, and also supporting the 3G standard. The manufacturer equipped it with a 1400 mAh lithium-ion battery and a 3.5-inch capacitive display. U mobile device there was WAP support, 64-voice polyphony, multimedia player, radio, 2 megapixel camera and GPRS. MTS also took care of integrated access to social networks, a voice recorder, a task scheduler, a digital compass, 4 gigabytes of internal memory, 512 megabytes of RAM, a 1 gigahertz processor and a built-in navigator. The smartphone ran Android OS.
Among the company's earlier models of touchscreen mobile devices, one can highlight the MTS 960. The device was released in 2012 and worked on Android based. The weight of the mobile device was one hundred and fourteen grams. He had lithium ion battery 1300 mAh, 2.8-inch touch screen, multimedia player, 2 megapixel camera, WAP Internet, full organizer, 650 gigahertz processor and memory card support.
The smartphone could be purchased in black or white. The case turned out to be made of plastic. The mobile device also had a GPS navigator and a Bluetooth interface.
The MTS 955 model appeared in 2011. She had a lithium-ion battery with a capacity of 1400 mAh, which allowed the device to work for four hundred hours in autonomous mode. In addition, the user could talk for up to six hours without recharging. Let us add that the smartphone had a 3.5-inch TFT touch screen. In the same year, the MTS 945 GLONASS model was released. It turned out to be equipped with a 1500 mAh battery, 3.2-inch touch screen, MP3 player, 3 megapixel camera, mobile Internet support (WAP and GPRS), built-in browser, organizer with voice recorder and currency converter, 130 megabytes of ROM (expandable up to 16 gigabytes by installing a memory card), Bluetooth module and the ability to synchronize with a desktop computer.
However, the main features of the device were its support GPS navigation and GLONASS. The smartphone ran on the Android platform.
Unfortunately, the company's history was not always cloudless, and was repeatedly overshadowed by various scandals. In the winter of 2009, it became known that it was forcibly transferring three thousand of its metropolitan subscribers who had not used its services for more than five months to not too favorable tariff.
Soon this decision had to be changed in such a way that when reaching zero balance the client did not have any debt. This was followed by another, no less unpleasant incident: a number of subscribers accused the operator of debiting funds while roaming. Soon, complaints arose about the company's imposition of paid services ordered through short messages.
Another unpleasant situation concerned the information that appeared that the operator’s subscribers were allegedly prohibited from using programs like Skype. However, it soon became known about the renewal of subscription agreements, and this information was refuted.
OJSC "Mobile TeleSystems" (MTS). History of formation and development of the company
Company<Мобильные ТелеСистемы>was founded as a closed joint stock company in October 1993. MGTS (Moscow City Telephone Network OJSC) and three other Russian communications companies, which together owned 53% of the initial share capital, and two German companies, Siemens AG and DeTeMobil GmbH (an affiliate of Deutsche Telecom AG), which collectively owned 47 % shares. AFK Sistema began acquiring shares in MTS from Russian co-founders in early 1995. DeTeMobil increased its stake in MTS mainly through the acquisition of shares from Siemens. MTS acquired the status of an open joint stock company in March 2000, and the initial issue of its shares was registered by the Federal Commission for the Securities Market (Federal Commission for the Securities Market, the body regulating the circulation of securities in Russia) on April 28, 2000.
30.1% of the shares of Mobile TeleSystems OJSC are controlled by Deutsche Telekom, 50.4% by AFK Sistema. At the same time, 44.8% belongs to the Russian company directly, 3% through VAST LLP and 2.6% through Invest-Svyaz Holding.
The Mobile TeleSystems company began providing cellular communications services in the GSM standard in 1994. In the summer of 2000, the company issued American Depository Receipts (ADR) on the New York Stock Exchange (NYSE). Until 2003, 40.1% of MTS shares belonged to Deutsche Telekom, 40.4% to AFK Sistema, 17% were in free circulation in the form of ADR. MTS capitalization amounted to $4.3 billion. MTS serves about 10 million people in Russia, Belarus and Ukraine.
March 1, 2000, as a result of the merger of JSC<МТС>and JSC<РТК>Open Joint Stock Company was formed<Мобильные ТелеСистемы>.
On April 28, 2000, the Federal Securities Commission of the Russian Federation registered the initial issue of shares of the OJSC<МТС>. In the same year, the company entered the world stock markets.
Since June 30, 2000, MTS shares have been listed on the New York Stock Exchange (in the form of American Depositary Receipts) under the symbol MBT. Having started in the Moscow license zone in 1994, MTS received licenses in 1997 and began to actively develop in Tver and the Tver region, Kostroma and the Komi Republic. In 1998, MTS bought<Русскую Телефонную Компанию>and together with it acquired licenses for the construction of a network in the Smolensk, Pskov, Kaluga, Tula, Vladimir and Ryazan regions. By participating in the work of the ReCom company, MTS is building networks in the Bryansk, Kursk, Oryol, Lipetsk, Voronezh and Belgorod regions. The concluded agreement with the Rosico company allows MTS to develop the GSM-1800 standard in another 17 regions of Central Russia and 11 regions in the Urals. Today OJSC<Мобильные ТелеСистемы>is the largest Russian cellular operator of the GSM 900/1800 standard. The company has licenses to provide mobile communication services of the GSM 900/1800 standard in 48 regions of Russia, where 89.5 million people or 60% of the country's population live, and actively operates in 32 regions, where 68.7 million people live , representing 47% of the total population Russian Federation.
The company currently has more than 9.7 million subscribers, of which more than 7.6 million are in Russia. The company's network employs more than 6,600 base stations and 76 switches, and operates more than 200 of its own sales and subscriber service centers. The rate of connection of new subscribers to the MTS network continues to be high. In Russia, 20,000-30,000 new users connect daily, of which about 13,000 are in Moscow. Among new subscribers, approximately 50% choose prepaid tariffs of the family<Джинс>, and among contract tariff plans the most popular are group tariffs<МТС. Оптима>.
Development
Company<Мобильные ТелеСистемы>(MTS), which provides cellular telephony services, intends to expand into foreign markets. The most likely regions for the development of MTS's foreign business are India, Iran, Pakistan and Lebanon.
Despite strong cultural differences with Russia, consumer behavior in these markets is very similar to Russia. Most experts agree that European mobile markets are already close to saturation, while the developing cellular infrastructure in Asia remains an attractive investment opportunity.
MTS has already created analytical groups that are working on scenarios for the company’s entry into Asian markets.
Belarus
The Belarusian-Russian joint limited liability company "Mobile TeleSystems" (JLLC "MTS") has been providing cellular communication services in GSM 900/1800 standards in Belarus since June 27, 2002. The founders of JLLC "MTS" are RUE " Long distance communication"(Belarus) - 51% and MTS OJSC (Russia) - 49% of the authorized capital. The subscriber base of MTS JLLC in Belarus at the beginning of March 2003 was about 60 thousand subscribers. The company intends to invest more than $60 million. in the development of the cellular communication network in the republic. Direct investments of MTS OJSC in Belarus currently amount to $5.3 million, investments of MTS JLLC in communication infrastructure - $32.1 million. The main area of investment in the Belarusian project of MTS OJSC considers the expansion of the network coverage area.Over 8 months of work on the Belarusian market, the number of roaming partners of MTS JLLC amounted to 39 operators in 27 countries of the world.
The meeting of shareholders of the Ukrainian cellular company UMC approved the transfer of 57.7% of the company's shares Russian operator MTS. UMC must submit the required documents to the Ukrainian registration authorities next week to register the transfer of shares. After such registration, MTS becomes the owner of a controlling stake in UMC. Registration is expected to be completed during March 2003, MTS said in a press release.
MTS acquires for $194.2 million a 57.7% stake in UMC from KPN (16.3%), Deutsche Telekom (16.3%) and Ukrtelecom OJSC (25%).
Completion of the acquisition of UMC will allow MTS to enter the developing Ukrainian mobile communications market and increase the population living in the licensed territory of MTS to 162.4 million people.
On March 26, Mobile TeleSystems announced the acquisition of PTT Telecom Kyiv LLC, a subsidiary of the Dutch telecommunications operator KPN. PTT Telecom Kyiv is the owner of a 1% stake in the Ukrainian Mobile Communications (UMC) company. The purchase of PTT Telecom Kyiv is part of the deal for MTS to acquire a 57.7% stake in UMC for $194.2 million and, in particular, to buy out KPN’s 16.3% stake in UMC for $55 million.
PJSC Mobile TeleSystems (MTS) is a leading telecommunications operator in Russia and the CIS countries. The company's consolidated subscriber base, excluding the MTS Belarus subscriber base, is about 100 million subscribers. MTS and its subsidiaries provide services in the GSM standard in all regions of Russia, as well as in Armenia, Belarus, Ukraine, Uzbekistan and Turkmenistan.
The company provides high quality services voice communication, data transmission and high-speed Internet access, offers new tariff plans and innovative services that meet the diverse needs of a wide range of private and corporate subscribers. Thanks to the extensive network coverage area and roaming agreements, MTS subscribers remain connected in almost all countries of the world, and Internet roaming is available in more than 200 countries. MTS gives priority to customer service and maintenance. The company is developing its own retail network, represented by more than 4,000 showrooms, and has a wide dealer network of sales points throughout the country.
Today MTS is a successful multi-service data-oriented company, providing subscribers with unique converged products and services based on advanced technical solutions. The development strategy of MTS Group for 2014-2016 “3D” (“data, differentiation dividends”) is aimed at strengthening leadership in the Russian telecommunications market through increased penetration of services mobile internet, diversification of services, increasing operational efficiency and investment attractiveness of the company for shareholders.
To achieve its goals, MTS is actively building high-speed mobile networks and developing its own transport infrastructure. At the end of 2014, MTS LTE networks operated in 76 regions of Russia. As part of the GPON project, MTS provided residents of more than 3.5 million apartments in Moscow with the opportunity to connect to a fiber-optic line, which allows them to use fixed Internet at speeds of up to one Gbit/s. In addition, MTS offers fixed FTTB/FTTH solutions in more than 180 Russian cities, and also uses its retail network to increase the penetration of subscriber devices for Internet access, developing its own branded line of affordable smartphones.
Based on synergy with fixed broadband access, MTS clients have access to digital cable TV(IPTV and DVB-C), video services, comprehensive solutions for offices combining fixed and mobile communications.
MTS is actively developing navigation and telematics services, M2M solutions that are widely used in various sectors of the economy, and is developing new business areas by offering services electronic document management and cloud computing solutions. In close cooperation with MTS Bank, the company provides banking and financial services in its retail network, develops mobile commerce and contactless payment services based on NFC technology.
MTS Group is the undisputed leader in absolute terms of revenue, OIBDA and OIBDA margin among the Big Three operators. The consolidated revenue of MTS Group for the first nine months of 2014 increased to 303.6 billion rubles, the consolidated OIBDA indicator for the first nine months of 2014 increased to 132.9 billion rubles, the OIBDA margin for this period was 43.8%.
MTS is one of the blue chip companies Russian market shares and is among the ten largest mobile operators world in terms of subscriber base size. Since June 2000, MTS shares have been listed on the New York Stock Exchange under the symbol MBT. The largest shareholder of MTS is AFK Sistema, which owns 53.5% of the operator’s shares, about 46.5% of the shares are in free float.
Nowadays it is difficult to find a person who is not familiar with the MTS brand. The history of the company goes back more than 20 years, and during this time the cellular operator has significantly expanded the range of its services, capturing the markets of neighboring countries. Today we will discuss the history of the creation of MTS, its advantages and criticism.
How did MTS develop? History of the company with coverage of main events
The organization originated in the last century, but today it occupies a key role not only on the Russian, but also on the Ukrainian, Belarusian and Turkmen trading platforms. Throughout almost the entire territory of the former USSR, this company is known as a supplier of relatively cheap and high-quality network communications. A series of important MTS events will be presented below. History of the company:
- In 1993, on the basis of the Mobile Moscow consortium, a company providing mobile communications called MTS was organized. The corporation registered in the capital as a closed joint-stock company. Some members of the consortium and a number of wealthy shareholders became participants in the project. MTS did not appear in the history of the USSR, but it still operates in many countries that were previously part of the union.
- In 1994, the first station was launched and commercial activities began. At the initial stage, communications extended exclusively to the territory of the Moscow region, where 8 bases operated.
- By 1996, there were already 5 thousand Russians among the corporation's clients, while the number of stations increased to 14.
- In 1997, rapid expansion into the regions began. In most situations, MTS independently obtained licenses, but some governors prevented the construction cell towers. In such cases, the organization was forced to buy other companies that had already received permission to operate in a certain region.
- At the beginning of the 21st century, the number of network subscribers exceeded 1 million. Since 2000, MTS has operated jointly with RTK and founded a new joint-stock company. The issuer issues highly liquid shares that are even listed on American stock exchanges.
- In 2002, a tariff without a subscription fee was launched. After advantageous offer in just 2 years, the number of users increased to 15 million. In 2003, MTS entered the Ukrainian trading platform and occupied a leading position there. By 2004 mobile network already covers all of Russia.
- 2005 turned out to be a difficult year for the company. Revenue and the number of users have dropped significantly. The corporation tried to correct the situation by introducing innovations. Certain standards of reporting within the company and new four-tier corporate governance schemes have emerged. Changed appearance logo and an updated form of payment for mass tariffs has been activated.
- The history of the MTS logo that we know today began in 2006. The corporation carried out a total rebranding, significantly changing the corporate logo. Now the logo consisted of two red squares, one of which contained the inscription “MTS”, and the other a white egg. In other countries, rebranding occurred somewhat later. In Ukraine - in 2007, and in Armenia - in 2008. Thanks to the change in the logo, brand recognition increased by 91% over the year.
- In 2009, the corporation began to become interested in other telecommunications industries. It acquires a controlling stake in COMSTAR and begins work in the wireline communications market. The organization is rapidly expanding in the retail marketplace. It opens a network of its own salons, which are retail outlets and customer service centers.
- In 2010, the corporation was engaged in providing Internet communications. It is recognized as the Russian federal 3G operator.
- In 2011, the operator significantly reduces the cost of services, hoping to gain new followers through this.
- In 2015, a system of money transfers to cards of Russian banks via SMS was launched.
- This year, due to the depreciation of Turkmen assets, the company lost over 1 billion rubles. The corporation still remains one of the leading providers of network communication services, but users have repeatedly filed complaints about unprofessional customer service. If the organization does not correct its mistakes, it may lose even more financial resources in the near future.
Success story of one of the largest mobile operators:
Criticism of MTS activities
The company has been repeatedly attacked by competitors. Many users complain about its services, but the corporation still serves tens of millions of people. We suggest you figure out what significant mistakes the organization made and why its clients were dissatisfied: 
- The first major scandal occurred in 2009, when a communications provider forcibly transferred more than 3,000 users to a special tariff plan. Subscription fee was 333 rubles monthly. The unexpected change in the terms of the contract outraged people. Clients heatedly discussed the actions of their operator in in social networks and on LiveJournal pages.
A few days later, the president of the company changes his decision: now subscribers who do not use the network for a long time will pay 3 rubles daily. At the same time, the organization’s employees refused to provide any documentary evidence of the termination of the basic contract. The document provided for the re-registration of an inactive number to a third party. - The incomprehensible cost of services, which constantly changed without explanation, greatly angered users. The operator wrote off funds if the user was roaming. In addition, the cost constantly fluctuated, “floating” from credit to advance. This resulted in a rapid increase in subscriber debt. Such situations arose due to thoughtless access to the Internet. Due to installed programs, some phones automatically connected to the network, which entailed withdrawal of money from the account.
- The operator has repeatedly received subpoenas for charging funds for incoming SMS. In most cases, the judge sided with the subscriber. MTS often imposed expensive paid services without bothering to explain the rules for their use. Without the client’s knowledge, the organization connected paid services, which resulted in a huge debt.
- The company providing mobile communications has introduced a ban on the use of Skype and other programs for transmitting voice messages. At the same time, the installation or operation of these services was not blocked. Management soon decided to exclude this clause from the contract. Experts say that in this way MTS unsuccessfully tried to oust competitors providing free Internet communications.
Today the corporation is among the 100 largest global brands. It makes huge profits and still has a significant influence on the cellular market. According to a Russian research center, at the time of 2010, MTS was the most expensive brand in the country. Scandals and numerous lawsuits have reduced the efficiency of this operator, but now it still has the opportunity to restore its former profitability.
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