Our Markets
MTS Group Key Markets
MTS Telecom
- Mobile communications market leader
- Top 3 Russian BBA operators, the market leader in Moscow
- Top 5 Russian pay-TV operators
| In 2019 | Belarus | Armenia | Russia |
|---|---|---|---|
| Population, million people | 9.5 | 3.0 | 146.7 |
| Subscribers, million | 5.6 | 2.2 | 79.1 |
| Penetration, % | 127 | 128 | 178 |
| Market share, % | 47 | 58 | 30 |
| Russia, subscribers | 2018 | 2019 | Change, 2019/2018 | Share of subscribers, % | |
|---|---|---|---|---|---|
| MTS | million | 78.0 | 79.1 | 1.4 | 30% |
| MegaFon | million | 75.2 | 75.2 | 0.0 | 29% |
| VimpelCom | million | 55.3 | 54.6 | - 0 .6 | 21% |
| T2 RTC Holding | million | 42.3 | 44.6 | 2.3 | 17% |
| Others (“Motive,” “Tattelecom,” MVNO-operators) | million | 5.0 | 7.2 | 2.3 | 3% |
| Total | 255.7 | 260.7 | 5.0 | 100% |
The structure of the Russian BBA market, 2019
Market structure by operators, 2019
MTS Retail
- Largest retail
- Online store
2019 rating of the Top 100See more on the website largest Russian stores in terms of online sales by the end of 2019.
MTS Finance
- Banking and financial services, MTS Bank
- Financial services and applications
MTS Bank See more on the website
| Position | in Russia | in the region |
|---|---|---|
| Net assets | 41 (+4) | 32 (+3) |
| Net profit | 47 (-19) | 35 (-12) |
| Capital (on Form 123) | 34 (+8) | 28 (+7) |
| Loan portfolio | 39 (+6) | 31 (+6) |
| Overdue debt in the loan portfolio | 33 (-2) | 25 (-1) |
| Deposits by individuals | 29 (+8) | 22 (+7) |
| Investment in securities | 40 (-2) | 51 (-2) |
As of December 2019, MTS Bank among Russian banks, according to Franck Research and Banki.ru, takes:
MTS IT
- System integrator
- Cloud & digital solutions provider
- DPC (Data Processing Center)
- Big Data
- Artificial Intelligence
- OTT applications
NVision Group (by revenue)
MTS Cloud Business: #CloudMTS, IT-GRAD, 1cloud
MTS Media
Development of the strategic direction of the Group’s media assets and entertainment products of the Company’s digital ecosystem. Сontrol over MTS Group’s business in the field of television broadcasting in all environments
MTS Entertainment
Group business management in the field of entertainment and evelopment of related services, strategic development of assets in this segment
Overview of the Economic Situation and Market Development
Russia: Economic Trends
The volume of the Russian telecommunications market in 2019, according to TMT Consulting, increased by 2.1% compared to the previous year and amounted to 1.73 trillion rubles. The decrease in growth rate was primarily due to the slowdown in the mobile communications market. Forming 57% of all telecommunications revenues, it is this market that determines the dynamics of the industry. Other negative factors were the slowdown in the fast-growing pay-TV market and the steadily high rate of decline in revenues in the fixed-line telephone and inter-operator services markets.
The traditional business of telecommunications companies is gradually becoming a thing of the past, setting new challenges for operators and opening up opportunities for growth. The main trend of the industry is transformation as a necessity and a need for a digital economy.
Our future is directly related to such concepts as the Internet of Things, cloud services, Big Data, mobile finance, artificial intelligence, OTT services, etc. Successful steps taken today in industries related to the telecommunications business or in new areas of business will help maintain the Company’s leadership in the new digital world.
The prospects for the Russian telecommunications market for the next 10 years (according to GSMA Intelligence research GSMA Intelligence Mobile Economy Russia and the CIS 2019, GSMA Intelligence Consumer Survey 2018.) are as follows.
- In 2021, 4G will become the leading mobile technology.
- The share of 5G connections will be approximately one fifth of all connections in 2025.
- The use of mobile services on a regular basis will increase: for access to entertainment content (especially video), e-commerce (most often using contactless payment technology) and other digital services in areas such as health and education.
- The number of unique mobile communication subscribers will not change significantly due to high penetration rate.
- A steady level of revenue is expected until operators begin to more effectively monetize the significant growth in data traffic and generate revenue from new channels.
Competitive Situation
Today, there are four federal operators in the Russian mobile communications market:
- MTS PJSC,
- MegaFon PJSC,
- VimpelCom PJSC (VEON Ltd), and
- T2 RTC Holding LLC (a combined operator of Rostelecom PJSC and Tele2).
Several regional telecommunications companies and virtual network operators (MVNO) occupy around 4.5% of the market.
Other Markets
CIS countries as of the end of 2019: >125% — penetration of mobile telecom services.
- Republic of Armenia (MTS Armenia CJSC) — 2.2 million subscribers; main competitor — Veon Armenia CJSC (trademark Beeline).
- Republic of Belarus (Mobile TeleSystems JLLC is not consolidated into the financial statements of MTS Group) — 5.6 million subscribers; main competitors — Velcom and BeSt CJSC (brand life:)).