Annual Report 2015



Who We Are

MegaFon is one of Russia’s largest mobile operators in terms of revenue and subscribers. We provide services in all market segments, including voice, data and other mobile and fixed-line telecommunications services, digital TV and IP telephony. We also have subsidiaries in Tajikistan, Abkhazia and South Ossetia. As of the end of 2015, Megafon provided services to 76.8 m subscribers, including 74.8 m subscribers in Russia

Our extensive networks

Our advanced infrastructure enables us to deliver a wide range of high-quality mobile services throughout Russia. In 2015, we entered new regions and increased the total number of our base stations by 9.9% to 113,230 units. Our 2G and 3G networks cover 97.7% and 89.5% of the population respectively1. As of the end of 2015, MegaFon’s 4G services available to 59.2% of the Russian population, in 77 regions of Russia and in 14 of the 15 largest cities (with a population of over 1 m people). By continuously developing our infrastructure, we want to provide our customers with fast and stable connection, high quality of connections and high speed mobile Internet.

Our broad service portfolio

Our high-quality services, all targeting real customer needs, extend far beyond voice, mobile and fixed-line data transfer. We also provide a range of value-added services to retail customers, business and government clients and other telecommunication service providers. We work with corporate clients to develop and provide bespoke business solutions. We have a consumer hardware business, selling handsets and other devices. Our MegaLabs subsidiary, meanwhile, specialises in developing innovative solutions in M2M, financial services, media, content and the cloud.

Our respected brand

In 2015, MegaFon updated its brand positioning. At the heart of the new positioning is the idea that MegaFon continuously improves quality of communication to make people across Russia feel that they are close to their loved ones, even when they are far apart. According to a survey among the subscribers of the top four Russian mobile operators, at the end of 2015 the key unique attributes of the MegaFon brand were: ‘high quality of communication’ and ’work on the improvement of communications quality’. MegaFon intends to use its unique attributes to achieve its strategic objectives in 2016.


Our retail network

MegaFon’s own controlled distribution network include 2,096 MegaFon Retail stores, 1,980 franchised stores and approx. 4,000 stores of the nationwide Euroset chain, which we own in partnership with VimpelCom. Together, these are the primary places in which we come into face-to-face contact with customers, adding value and enhancing our brand through the friendly and speedy resolution of issues, the delivery of professional advice and high standards of service.

Exceptional people

The commitment and accountability of MegaFon’s employees are what makes our business so successful. Attracting and retaining the best possible talent is the mission-critical driving force behind all our training and personal development activities. As of 31 December 2015, we employed 31,576 people.

Innovative, affordable hardware

We aim to improve our customers’ lives at a reasonable cost with every device we sell. Our affordable data-enabled smartphones and tablets are enabling customers to access innovative services that open up new opportunities for them right across Russia. The wide range of 4G-enabled devices, routers, modems, dongles and other devices, which we offer in our MegaFon Retail stores, is making it easy to access the new world of 4G and enjoy such popular services as streaming audio, HD-video, online games, social networks and others.

1  Based on MegaFon estimates