EQS-News: Mobile Telesystems

MTS is the first mobile operator in Russia to launch an integrated IoT platform on national scale. Our IoT platform provides an integrated solution to manage objects embedded with network connectivity and pro-actively monitor IoT-enabled equipment performance. The platform has an open API (application programming interface) and supports various data networks. Accordingly, our clients' existing equipment and IT systems can be directly connected with up-to-date sensors, cameras, robots and programs. The objects connecting to the platform can be managed from a single center, regardless of their location, which will be of substantial benefit to many of our clients in Russia who have operations in the areas that are traditionally difficult to reach.
 
MTS is the first mobile operator in Russia to create an IoT platform of this scale. Having pioneered the Machine-to-Machine communications in Russia with the introduction of the first M2M tariff, we are confident that this new offering will be in strong demand by the market.
 
Developing our own IoT platform is another step in the MTS strategy to be the go-to provider in helping business customers adapt quickly and efficiently to the fast-changing requirements of the digital economy, reduce their costs and bring their operations to a new level. For government customers, our IoT platform can become a driver for development of smart cities, smart grids and intelligent transportation.
 
In addition to being the largest telecom company in Russia, MTS has consistently been the clear leader in the Russian IoT market by number of connected devices. In the coming years, we will strengthen our presence in the IoT segment through open source platforms, cloud applications and the introduction of the Internet of things at any scale - from small stores, to large factories, cities and federal networks.
 
Our IoT architecture can support equipment across a variety of industries including manufacturing, energy and diversified service companies. The platform is also applicable for integrated IoT solutions for agriculture, logistics, commercial real estate and other businesses. Our equipment monitoring system allows our clients to anticipate wear-and-tear as well as potential malfunctions before the deterioration reaches a critical stage. Notifications can be sent via the client's computer system, but also by SMS and e-mail. This will substantially reduce cost of maintenance and prevent losses related to equipment failure.
 
The platform also includes an integrated and comprehensive "Smart Metering" solution, replacing an earlier system using telematics enabled M2M SIM cards. MTS is a pioneer among Russian telecom operators to launch this service. One of the real business cases is the implementation of Smart Metering from MTS for a vegetable storage. Our solution allows our client to control the temperature and moisture level in the boxes where the vegetables are stored. As a result, the customer is confident in the storage conditions and the percentage of spoilage has decreased.
 
Cyber security is always at the core of all our technological innovation. Connected to secure communication channels, our IoT sensors and controllers can send data to a fully protected MTS cloud, where they are processed in real time and then sent to secure cloud storage. Equipment monitoring and reports generation can be done in a web user interface or in standard programs by connecting them to the MTS IoT platform using API procedure. MTS IoT platform uses secure SSL and HTTPS encryption protocols, as well as a network antivirus and a cyber threat protection center.
 
MTS in the IoT market
 
MTS is the leader in the IoT market in Russia in terms of the number of telematics SIM cards, according to AC&M research in 2016. MTS is also the first telecommunications company in Russia that regularly promotes the IoT-based product portfolio in the national scale. In 2009, MTS offered its customers the first telematics solution for vehicle monitoring. In 2011, we launched "M2M Manager" solution, which allows any device in real time to configure and monitor the MTS network, the work of various M2M-equipment. In 2016 and 2017, MTS tested NB-IoT and LPWAN technologies and deployed the IPv6 architecture on the network, which allows almost unlimited number of devices to be connected to the Internet.
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For further information, please contact in Moscow:
 
Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems PJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru
 
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/
 
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Mobile TeleSystems PJSC ("MTS" - NYSE:MBT; MOEX:MTSS), the leading telecommunications group in Russia and the CIS, provides a range of mobile and fixed-line communications services. We serve over 100 million mobile subscribers in Russia, Ukraine, Armenia, Turkmenistan, and Belarus, and about 9 million customers of fixed-line services, including fixed voice, broadband internet, and pay-TV. To keep pace with evolving customer demand, MTS is redefining what telecommunications services are by offering innovative products beyond its core network-related businesses in various tech segments, including Big Data, financial and banking services, internet of things, OTT, cloud computing, systems integration and e-commerce. We leverage our market-leading retail network as a platform for customer services and sales of devices and accessories. For more information, please visit: www.mtsgsm.com.
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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," and the negative of such terms or other similar expressions.  We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company's most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.