MTS plans to invest 20% of core Capex in new segments

MTS today unveiled a refreshed strategy for the period 2020-2022 at its 2019 Investor Day in Moscow.
MTS 5G trial in Russia
The strategy of MTS, CLV 2.0 ­— Customer Lifetime Value 2.0 — is aimed at maintaining leadership in mobile connectivity while building out an ecosystem of enhanced services with the aim to strengthen loyalty and capture additional value over the entire customer lifetime.

MTS said it plans to invest up to 20 percent of core Capex (capital expenditure) in new segments.

MTS CEO Alexey Kornya said: “MTS’s new business strategy is a timely move as economic digitalization accelerates and users and businesses demand new technologies. It is a logical next step following the execution of our previous 3D strategy focused on Data, Digital, and Dividends.”

MTS has become a top-3 digital TV provider in Russia, as well as а major player in entertainment and eSports.

MTS will take a client-centric approach focused on increasing the frequency of touch points and overall time customers spend within ecosystem.

In contrast to prior strategy that focused on financial results within specific product P&Ls, the new strategy is focused on maximizing long-term client value by better meeting the customer’s needs, while enhancing loyalty and offering attractive bundled offerings.

“We aim to extend convergence beyond connectivity by providing fit-for-purpose offerings for the modern digital lifestyle to improve people’s lives and support the development of Russia’s digital economy,” Alexey Kornya said.