Telecom Lead Europe: Russian mobile service provider MTS is likely to spend around $2.6 billion as Capex (capital expenditure) in 2013.
Capital investment in 2013 will be lower than 2012’s $2.9 billion or roughly 23 percent of sales.
With the near completion of its roll-out of 3G in 2012, MTS foresees a decrease in 3G-related Capex in 2013. However, MTS will invest in LTE networks.
For the period 2013 to 2015, MTS expects cumulative Capex / sales ratio in the range of 18-19 percent.
The company is looking at investing 20 percent of its current year revenue as Capex in 2013. In 2013, MTS targets 5-7 percent revenue growth from $12.4 billion revenue in 2012.
Announcing the Capex guidance for 2013, MTS said it would focus on rolling out LTE networks in regions throughout Russia. In addition, MTS will build-out its GPON network in Moscow.
MTS is planning improvements in 3G networks, including the expansion of IP-connected base stations and enablement of HSPA+ connectivity.
In 2012, MTS invested to improve its wireless and fixed-line networks throughout Russia. At present, MTS has more than 28500 3G base stations in Russia.
The company also invested for upgrading 3G base stations to support LTE standard in the Moscow region. The other focus area was the roll
out of GPON project in Moscow with a total of 200,000 households
connected and 1 million households passed.
Recently, Alexey Kornya, MTS Vice President and Chief Financial Officer, said: “Capex for 2012 came in line with our guidance at
$2.9 billion or roughly 23 percent of sales. In 2012, we continued build-out of our 3G networks, which has reached 28, 000 base stations with over 90 percent sites connected via IP-
channels.”
Last year, MTS also invested in backbone and backhaul roll-out in t
he regions as well as in our GPON project in Moscow, bringing the total length of our fiber-optic networks up to over 140,000 km.
For the year 2012, MTS Group revenues increased 1 percent to $12.4 billion. The mobile operator experienced strong operating dynamics in Russian and Ukrainian markets.
However, its top line was limited by significant weakening of the Russian ruble versus the US dollar and the mid-year suspension of its operations in Uzbekistan.
