MTS Russia to lower capex to $2.6 billion in 2013

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MTS Russia to lower capex to $2.6 billion in 2013

March 26, 2013

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MTS is planning to lower its capex from $2.9 billion in 2012 to $2.6 billion in 2013.

The operator is estimating a lower capex for this year, following the completion of 3G roll-outs in 2012. It will invest in a 4G network this year and for 2013-15, the operator is expecting a cumulative capex/sales ratio of between 18 and 19 per cent.

The company is planning to invest 20 per cent of its total revenue of $12.4 billion (in 2012) as capex in 2013. The operator is targeting revenue growth of between 5 to 7 per cent in 2013.

The company will focus on rolling out 4G services throughout Russia. In addition, MTS will build its gigabit passive optical network in Moscow. It is also going to expand the number of IP-connected base stations for its 3G network and upgrade the network to HSPA+ technology. Currently, MTS has more than 28500 3G base stations in Russia.