Rostelecom leading by the number of public WiFi hotspots according to the 2019 TMT Consulting rating
Moscow, Russia - July 7, 2020 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest integrated digital service provider in Russia, today announces that according to ratings provided by TMT Consulting, an independent consulting agency (see link), Rostelecom leads the market for the number of public WiFi hotspots.
According to TMT Consulting, market volume for public WiFi hotspots grew by 23% over the last year in Russia to 166,000, all of which were launched and managed by telecom operators. The market hit the total revenue mark of RUB 7 billion, up 12% compared to 2018.
The rating agency notes that Rostelecom became the leader in 2019 by the number of operated WiFi hotspots - 45,100 in total excluding the Bridging the Digital Divide project. Rostelecom's leading position in the market thus equates to a 27% share of the entire public WiFi service market by the number of hotspots which increased by 64% over the last year. The increase in demand was coming predominantly from large companies operating in the banking sector, as well as from the HoReCa segment.
Denis Ryabchenkov, Director of Product Management at the corporate and state segment of Rostelecom PJSC, commented: "Rostelecom serves a wide range of SMEs, banks as well as large corporations with its WiFi service which meets the highest technological requirements and the quality of customer service. It can be complemented with a whole complex of service model based integrated solutions, including wired Internet connection, digital TV, mobile communication and private virtual networks."
Today, wireless Internet access is considered completely essential to our day to day living and communication. Rostelecom has extensive experience in rolling out large distributed WiFi networks. Its technical capabilities were first tested as part of the FIFA 2018 World Cup. The campaign saw the total internet consumption scaled to 65Tbite capacity, making Rostelecom's free public WiFi networks available to more than 144,000 users at the stadiums and over 43,000 people in fan-zones across Russia. Individuals from 137 countries successfully passed the authorization process, with no registered disruptions.
Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.
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Rostelecom is the largest integrated digital services and products provider, operating in all segments of the telecommunications market in Russia. The Company serves millions of households, state and private enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed Internet access and pay-TV. The total number of broadband users stands at over 13.2 mln users, it has more than 10.5 mln pay-TV customers, over 5.7 mln of which are subscribed to Rostelecom's IPTV services. Tele2 Russia, a Rostelecom subsidiary , is a major player in the mobile market with over 44 mln subscribers and the industry-leading NPS, a customer satisfaction benchmark.
In the first quarter of 2020, the Group generated RUB 121.6 bln of revenues, RUB 47.1 bln of OIBDA (38.7% of revenue) and RUB 7.7 bln of net income.
The Group is the leading provider of telecommunications services to government bodies and corporates of all levels.
Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centers and cloud computing, biometry, healthcare, education and housing & utility services.
The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard & Poor's respectively, and AA(RU) by ACRA.
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Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby.
Those forward-looking statements include, but are not limited to:
- Assessment of PAO Rostelecom's (the Company) future operating and financial results as well as forecasts of the present value of future cash flows and related factors;
- The Company's plans to take ownership stakes in other organisations;
- the Company's anticipated capital expenditures and plans to construct and modernize its network;
- the Company's expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
- the Company's plans with respect to improving its corporate governance practices;
- the Company's expectations as to its position in the telecommunications market and forecasts on the development of the market segments within which the Company operates;
- economic outlook and industry trends;
- the Company's expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives on the Company's activity;
- other statements regarding matters that are not historical facts.
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:
- risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;
- risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies;
- risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company's services including their promotions, and the ability of the Company to remain competitive in a liberalized telecommunications market;
- technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies;
- other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company's Annual Report and the Company's other public filings.
Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.