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September 30, 2021updated 10 Dec 2021 6:55am

MTS Russia leverages inorganic growth to compete in the telco market

By GlobalData Technology

MTS is strengthening its position across a number of services in the Russian market, aiming to gain scale, offer new products and services through the acquisition of other Russian operators and partnerships. MTS has expanded in the enterprise segment by acquiring Russian multiservice communication network Multiregional Transit Telecom (MTT) for RUB5 billion (US$70m) in June 2021.

MTT offers a long-distance telecoms carrier, interconnect services as well as Communications-Platform-as-a-Service (CPaaS) and Mobile Virtual Network Enabler (MVNE) services. In April, MTS also completed the second stage of the acquisition of the Green Dot group of regional fixed voice, fixed broadband, and digital TV operators. MTS also acquired GreenBush data center in July 2021, by acquiring the owner, GDT Energy Group LLC, for RUB5.2bn (US$72m), with the move set to enable MTS to expand its market co-location and cloud solutions capabilities under the CloudMTS brand.


Alongside this, in January 2021, MTS also extended its strategic partnership with Vodafone Group, with the collaborative agreement now running to 2023, with the telco aiming to continue to leverage Vodafone’s international experience, network operations skills, and marketing knowledge. Nevertheless, major MTS competitors were not inactive, MegaFon, Beeline, and Rostelecom signed an agreement to form a joint venture to rollout and establish 5G networks in a move to challenge MTS.

MTS holds a 30.7% share of total mobile subscriptions in 2021, making it the majority in the mobile market, whilst it is the second largest in the fixed voice and fixed broadband markets.