Megafon spoke about the main threat to its business
Yesterday, February 12, Megafon mobile operator published a report on its work for the fourth quarter of 2015.
“The risks associated with changes in prices for products and / or services of the Company [PJSC Megafon] in foreign markets are insignificant. The share of revenue from the export of roaming services for subscribers of other operators is about 1% and cannot have a significant impact on the Company's operations, ”the report says.
On Thursday, February 11, Interfax reported that following the results of the second regional stage of auctions for LTE frequencies in the range 2570-2595 MHz, Megafon won 20 lots. For the frequencies won, Megafon will pay 1.234 billion rubles.
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“In order to continue its development, the Company needs to make cash investments in the development of the network, wireless Internet, new products and services, as well as finance the acquisition of new assets. The growth of interest rates in the market may lead to the fact that the Company will not be able to raise enough funds on commercially favorable terms. [Then] it may be forced to significantly reduce its investment costs, which may adversely affect its market share and operating results. " But this is not the worst.
Megafon is most concerned about the expansion of the influence of the Tele2 operator on the market of Moscow and the Moscow region (Tele2 entered this market in October 2015):
A significant proportion of MegaFon subscribers "may have a low income level and, accordingly, be sensitive to price changes." Therefore, by raising tariffs, Megafon risks losing even more subscribers.
The growth rate of the subscriber base of operators is declining, so their struggle for the audience is becoming tougher. “This is a major factor in the possible deterioration of the situation in the industry,” the document says.
In this regard, Megafon has taken measures to protect its subscriber base at all levels. One of such measures were advertising campaigns targeted at corporate clients and individuals.
Since November 9, Megafon has ceased to include the so-called on-net calls in the “All Inclusive” tariff plans (a total of five), Megamind reported . Minutes of conversation, for which a fixed fee was charged, now consist only of calls to numbers of other operators. Inside the network you can call without restrictions.
According to Yulia Dorokhina, a representative of Megafon, about 25% of MegaFon’s Russian subscribers use the “All Inclusive” tariffs. Approximately 60% of their calls are intranet.
The operator made such a gift for subscribers on the threshold of Tele2’s entry into the capital market.
“The risks associated with changes in prices for products and / or services of the Company [PJSC Megafon] in foreign markets are insignificant. The share of revenue from the export of roaming services for subscribers of other operators is about 1% and cannot have a significant impact on the Company's operations, ”the report says.
On Thursday, February 11, Interfax reported that following the results of the second regional stage of auctions for LTE frequencies in the range 2570-2595 MHz, Megafon won 20 lots. For the frequencies won, Megafon will pay 1.234 billion rubles.
')
“In order to continue its development, the Company needs to make cash investments in the development of the network, wireless Internet, new products and services, as well as finance the acquisition of new assets. The growth of interest rates in the market may lead to the fact that the Company will not be able to raise enough funds on commercially favorable terms. [Then] it may be forced to significantly reduce its investment costs, which may adversely affect its market share and operating results. " But this is not the worst.
Megafon is most concerned about the expansion of the influence of the Tele2 operator on the market of Moscow and the Moscow region (Tele2 entered this market in October 2015):
Such increased competition may lead to a reduction in tariffs and, consequently, to a decrease in the total margin, which is a key threat to the Company's business. However, the consequences of these risks are mitigated by the fact that Megafon is one of the four largest mobile operators in Russia (taking into account T2 RTK Holding). Megafon has licenses to provide services in the GSM, 3G and 4G bands, and MegaFon’s leading position in the 4G / LTE market has become even stronger due to the acquisition of Scartel / Yota.
A significant proportion of MegaFon subscribers "may have a low income level and, accordingly, be sensitive to price changes." Therefore, by raising tariffs, Megafon risks losing even more subscribers.
The growth rate of the subscriber base of operators is declining, so their struggle for the audience is becoming tougher. “This is a major factor in the possible deterioration of the situation in the industry,” the document says.
In this regard, Megafon has taken measures to protect its subscriber base at all levels. One of such measures were advertising campaigns targeted at corporate clients and individuals.
Since November 9, Megafon has ceased to include the so-called on-net calls in the “All Inclusive” tariff plans (a total of five), Megamind reported . Minutes of conversation, for which a fixed fee was charged, now consist only of calls to numbers of other operators. Inside the network you can call without restrictions.
According to Yulia Dorokhina, a representative of Megafon, about 25% of MegaFon’s Russian subscribers use the “All Inclusive” tariffs. Approximately 60% of their calls are intranet.
The operator made such a gift for subscribers on the threshold of Tele2’s entry into the capital market.
Source: https://habr.com/ru/post/298658/
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