OREANDA-NEWS. Network in the Republic of Altai will be launched for commercial use - this is the last 86th RF region on the licensed coverage map of MegaFon’s network

OJSC "MegaFon" - the first all-Russian mobile operator, finishes covering its licensed territory, which includes all 86 regions of the Russian Federation. As a result MegaFon becomes the first operator to roll-out its own network throughout the whole country.   

"Covering its license territory which coincides with RF boundaries, MegaFon followed a development strategy that is unique for the Russian market, says MegaFon’s CEO Sergey Soldatenkov. - The company never acquired existing networks from regional operators, but created technical base from scratch, using modern equipment which provides high-quality communications and high-level service for subscribers. During 5 years which passed since foundation of OJSC "MegaFon" the amount of about $4 bln. has been  invested in network development".

Today the number of MegaFon’s subscribers in the Russian Federation is over 32 mln. people. In 2006 MegaFon demonstrated the highest growth of subscriber base (+30%) and was the only operator among the "Big Three" to increase it subscriber market share in Russia - company’s share of new additions was 26,2%. As for quality indicators which in conditions of market saturation are becoming of utmost importance, MegaFon also showed best results as compared to its major competitors. In 2006 ARPU (monthly average revenue per user) was $11,8, and MoU (monthly average traffic per one subscriber) was 211 minutes.

OJSC "MegaFon" is the fastest growing mobile operator in Russia. In 2006 in its consolidated net income which was $812,8 mln., MegaFon came close to other operators of the "Big Three", and in relative growth of this indicator (+106%) MegaFon was considerably ahead of its main competitors. In 2006 EBITDA was $1,8 bln., y-o-y growth of 66,1% in comparison with the previous year. Company's revenue grew 56% to $3,7 bln. as compared with 2005. 

Improvement of the company's economic efficiency due to increase of services usage had a positive impact on its corporate rating. Major rating agencies - Fitch, Moody’s and S&P - raised MegaFon's corporate credit rating, based on review of operating and financial performance of the company.

MegaFon's success at the Russian telecommunications market is confirmed both by high financial results and professional awards. In 2006 OJSC "MegaFon" activities received expert recognition. The Company was among winners of "International Honorary Award for Social Responsibility of Business" as "Socially Conscious Company" and won Annual National Award "Leaders of Russian Economy" in the field of social responsibility of business and was named "The Best Employer of Russia".

By the time of completing the coverage of license territory MegaFon’s brand obtained the all-Russian reputation. For three years running MegaFon has been among "Super-brands" of Russia in categories b2c and b2b. In 2006 the company got grand-prix in the contest "Brand of the Year/EFFIE 2006" in nomination "Reputation and Trust" and got national award in the field of public relations development "Silver Archer" in nomination "Best Project of 2006". Professional awards in marketing proved once again that the company has chosen the right strategy of development and created strong and successful brand that enjoys trust.

"MegaFon’s success was a result of business strategy implementation which was mainly aimed at organic growth in fast growing Russian telecommunications market, expansion of coverage and network capacity throughout the country, its high-quality development and strengthening of brand position, improvement of operational efficiency, profitable investments and optimal choice of capital sources", says Sergey Soldatenkov.