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Russia’s mobile operator MTS aims for 3-5% revenue growth within three years

Within the framework of the new development strategy, the company will stake on wireless data transmission services

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MOSCOW, February 4. /ITAR-TASS/. Russian mobile telecommunications operator MTS expects its annual revenue to grow up 3- 5% due to the new development strategy for the years 2014-2016. The plan for the year 2013 has been successfully completed with a 5% income growth.

The company expects the operating income before the depreciation and amortization (OIBDA) to go up at least 6.5% from 2013. The company aims for an average OIBDA of 2% within three forthcoming years.

Within the framework of the new development strategy, the company will stake on wireless data transmission services and monetize them. The company believes that these services will raise income and compensate the decrease of revenue from voice communications. The operator is also going to introduce more Internet services because of the increasing demand for smartphones.

The company’s Marketing Vice-President, Vasily Latsanich, told a news briefing the average revenue per user (ARPU) went two times up, if the subscriber started using a smartphone. According to his calculations, around 40% of the subscribers are potential users of the Internet data transmission services.

Latsanich said that high-speed wireless telecommunication networks LTE would appear in all Russian large cities and smaller towns, where this service was in demand. In his opinion, the LTE technology will contribute sufficiently to Russian mobile operators’ income only within a five-year term at the earliest.

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