At the end of 2018, the largest telecom operators in Russia were MTS (the main shareholder of AFK Sistema Vladimir Yevtushenkov), Megafon (Alisher Usmanov), Beeline (Alfa Group). The top seven also includes Tele 2, Rostelecom, Svyaztransneft and Fly, which are largely state-owned.
The communications industry is an important factor for the development of all areas of the socio-economic area, so every year operators strive to modernize equipment, develop unique services and services to attract more customers. The rating is based on data on revenue received in 2018 (information is subject to mandatory disclosure on the Interfax service).
Note! The rating does not include telecom operators registered as LLCs, since according to the law they are not required to disclose data on financial performance.
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Head office – Russian Federation, Moscow
- ING BANK (EURASIA) CJSC.
- LLC “VAST”
- CJSC MOBILE TELESYSTEMS.
- LLC “DEUTCHE BANK”.
- CJSC INVEST-SVYAZ-HOLDING.
- JOINT STOCK FINANCIAL CORPORATION “SYSTEM”.
- DE TE MOBILE DEUTSCHE TELECOM MOBILE NO GMBH (Germany).
Management: President Kornya Alexey Valerievich
The revenue received at the end of 2018 is 411 billion rubles. (according to the consolidated report of the group of companies of the holding).
Official website: www.mts.ru/
The share capital of Russia’s largest mobile operator, a member of the Big Three, is divided as follows:
- AFK Sistema – 45.47%.
- MGTS – 0.38%.
- Stream Digital – 5.21%.
- Bastion LLC – 3.62%.
- Shares in free float on the stock market – 45.32%.
At the same time, MGTS, Stream Digital and Bastion are controlled organizations of AFK Sistema, therefore the actual owner of the controlling stake (54.88%) belongs to Sistema, the main shareholder of which is Vladimir Petrovich Evtushenkov.
Note! AFK Sistema is a major Russian private investor, which also owns shares in Detsky Mir, the largest chain of children’s goods.
The shares in free float are listed on the Moscow Stock Exchange.
Rice. 2. Graph of the MTS share price on the stock exchange
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Headquarters – Russian Federation, Moscow
Information about the founders:
- OJSC “CT – MOBILE”.
- JSC “TELEKOMINVEST”.
- LLC “CONTACT – S”.
- TELIA INTERNATIONAL AB (Sweden).
- TELIA INTERNATIONAL MANAGEMENT AB (Sweden).
- IPOС INTERNATIONAL GROWTH FUND LIMITED (Bermuda).
- SONERA HOLDING BV (Netherlands).
Management: General Director Vermishyan Gevorg Arutyunovich.
Revenue received based on the results of 2018 – 336 billion rubles. (data of the consolidated report)
Official site: https://www.megafon.ru/
Megafon is one of the largest cellular operators in Russia, the second key player in the Big Three along with MTS. The share capital is divided into the following shares:
- USM Group – 70.32%.
- Megafon Finance – 28.88% (100% – the share of Megafon PJSC in the company’s capital).
- Shares in free float – 0.8%.
The actual owner of the corporation’s shares is the international investment company USM, the owner of a controlling stake in which is its founder Alisher Usmanov.
In order to attract more customers and expand business, in 2012, cooperation was started with Scartel LLC, operating under the Yota brand (a virtual operator currently using Megafon equipment).
Rice. 4. Joint product of Megafon and Scartel
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Head office – Russian Federation, St. Petersburg
- LIMITED LIABILITY COMPANY “DONDO”.
- RADIO ENGINEERING INSTITUTE NAMED AFTER ACADMIK A.L. MINTS.
- JSC ROSICO.
- JOINT STOCK COMPANY OF OPEN TYPE “REGION”.
- LIMITED LIABILITY COMPANY “IMPULSE KB”.
- CENTER FOR TECHNICAL SYSTEM OF INFORMATION TRANSMISSION AT THE MFA OF THE RUSSIAN FEDERATION.
- ALL-RUSSIAN STATE TELEVIS. AND RADIO BROADCASTING COMPANY.
- INTERSTATE JOINT STOCK CORPORATION “VIMPEL”.
- President Krupnov Alexander Evgenievich.
- General Director Latsanich Vasil.
Revenue in 2018 – 322 billion rubles. (consolidated data).
Official website: www.beeline.ru/
PJSC VimpelCom (Beeline brand) is the third largest mobile operator in the country. The “Big Three” covers more than 80% of the entire Russian cellular communications market.
Holding shares are distributed:
- VEON Ltd (Bermuda) – 0.00001%.
- VimpelCom Holdings B.V. (Netherlands) – 99.99%
In fact, 100% of the shares are indirectly owned by VEON Ltd, whose owners are:
- LetterOne (a company owned by the Alfa Group holding, whose owners are: Mikhail Fridman, German Khan, Alexei Kuzmichev, Andrey Kosogov, Petr Aven).
- Telenor (Norway) – 14.6%.
- Stichting Administratiekantoor Mobile Telecommunications Investor (Netherlands) – 8.3%.
To attract customers, Beeline cooperates with many companies, and they arrange additional promotions.
Rice. 6. Special offer for the purchase of smartphones when connected to the operator
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Headquarters – Russia, St. Petersburg
Founders: the company was established by order of the State Property Committee of Russia
Management: President Oseevsky Mikhail Eduardovich
The revenue received in 2018 is 320 billion rubles. (data of the consolidated financial statements).
Official site: www.rt.ru/
Rostelecom is the country’s largest provider of digital services. Offers cellular, wired, Internet and home television services throughout Russia.
The authorized capital is distributed among the following shareholders:
- Federal Property Management Agency – 45.04%;
- Vnesheconombank – 3.96% (state corporation);
- Mobitel LLC – 12.01% (subsidiary of Rostelecom);
- Shares in free float on the stock market – 38.98%.
Note! Part of Vnesheconombank’s securities is held by a nominal holder – in the central depository.
Rostelecom acts as a partner of the state in the field of information technology, for example, organizes video surveillance at the Unified State Examination, implements projects in the industrial Internet market, designs the creation of high-speed Internet access points.
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Headquarters in Russia – Moscow
Information about the founders: 100% – TELE2 RTK Holding LLC, which in turn was created by:
- PJSC Rostelecom;
- TELE2 RUSSIA HOLDING AB (Sweden).
Management: CEO Emdin Sergey Vladimirovich.
The revenue received in 2018 is 143 billion rubles.
Official site: https://tele2.ru/
A large telecommunications company providing cellular services in 67 regions of Russia. At present, the authorized capital of the company is distributed:
- Rostelecom – 45%;
- Swedish TELE2 Russia Holding – 55%. In turn, the main owners of the company are:
- VTB – 50% (more than 90% of the shares belong to the state);
- Invintel BV – 40% (main owner – Alexey Mordashov);
- Bank Rossiya – 10% (the main shareholder is Yuri Kovalchuk).
In March 2019, the corporations agreed on the transfer of 100% of TELE2 shares to Rostelecom. The terms of the deal were not disclosed, but representatives of Rostelecom said that the operator will remain an independent company with its own management.
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Head office – Russia, Moscow
Information about the founders:
- MINISTRY OF PROPERTY RELATIONS OF THE RF.
- JOINT STOCK COMPANY FOR OIL TRANSPORT “TRANSNEFT”.
Management: General Director Viktor Albertovich Bertyakov.
The revenue received at the end of 2018 is 32 billion rubles.
Official website: https://svyaz.transneft.ru/
The company specializes in providing telecommunications services for organizations in the oil and gas complex in 60 regions of the country, and also provides communications for the process of transporting oil for export in accordance with licenses.
Svyaztransneft is a subsidiary of the Transneft Corporation, an operator of oil pipelines, 100% of whose charter capital is in federal ownership.
Large-scale construction of fiber-optic communication transmission lines is currently underway as part of the formation of a unified information system of Transneft.
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Place of registration – Russian Federation, Kazan
Information about the founders: Ministry of Land and Property Relations of the Republic of Tatarstan
Management: General Director Shafigullin Lutfulla Nurislamovich
Revenue received at the end of 2018 – 8 billion rubles.
Official site: https://tattelecom.ru/
Operator “Letai” is a brand of mobile communications provided by the largest universal communications operator in the Republic of Tatarstan (1500 stations are located throughout the territory of the republic). In addition to cellular communications, Tattelecom offers wired telephony, Internet and home television services.
87.207% – a share in the authorized capital of OAO Svyazinvestneftekhim, a company formed to invest funds in the development of the republic’s economy. The sole shareholder of the company is the Republic of Tatarstan.
To attract users, the operator has developed incentive promotions: a month of free communication when switching to an operator, cashback, free delivery of SIM cards, etc.
Should be borne in mind! The operator operates only on the territory of the Republic; outside it, automatic connection to other cellular operators is carried out.