MTS, a telecom network operator in Russia and the CIS, said on Monday that it will reduce its Capex (capital expenditure) to RUB 85 billion or $1.24 billion in 2016.

The telecom network operator is slashing the Capex despite grabbing 2.6 Ghz frequency spectrum in Russia to provide services on the LTE-TDD standard.

This apart, MTS also acquired licenses to provision mobile telecommunications services in the GSM standard, LTE standard and its subsequent modifications in the 1710-1785 MHz and 1805-1880 MHz ranges in Amur Region, North-Ossetia-Alania, Orenburg Region, Perm Krai and in Komi-Perm District, for RUB 1.91 billion.

MTS also signed agreement with rival VimpelCom to share LTE spectrum in the 2600 MHz in 20 Russian regions beginning in 2016. MTS says spectrum sharing will allow operators to double data transfer speeds available to the subscribers at peak speeds of 150 Mb/s.

The mobile operator is expecting more than 4 percent increase in revenue during the current year, said MTS.

MTS said its group revenue increased 5 percent to RUB 431.2 billion or $6.32 billion in 2015 fuelled by 19.8 percent increase in data traffic revenue in Russia to RUB 77.2 billion.

Vina Krishnan
[email protected]