Glossary

4G/LTE is the fourth generation of wireless technology which provides greater access to data and services through enhanced download and upload speeds, and enhanced use of spectrum.

Agile is an umbrella term for several advanced iterative software development approaches relying on continuous feedback, within self-organised cross-functional teams, to address fast-changing requirements.

B2B stands for Business-to-Business.

B2C stands for Business-to-Consumer.

B2G stands for Business-to-Government.

B2O stands for Business-to-Operators.

B2X stands for Business-to-X, including B2B, B2G, and B2O, but excluding B2C.

Backup-as-a-Service — a cloud hosting service that back ups data, ensuring stable business operations.

Big data represents the information assets characterised by such a high volume, velocity and variety that it requires specific technology and analytical methods for its transformation into value.

CAPEX (Capital Expenditures) comprises the cost of purchases of new equipment, new construction, acquisition of new or upgrades to existing software, acquisition of spectrum and other intangible assets, and purchases of other long-term assets, together with related costs incurred prior to the intended use of the applicable assets, all accounted for as at the earliest time of payment or delivery. Long-term assets obtained through business combinations are not included in the calculation of capital expenditures.

CEM stands for Customer Experience Management.

Converged services are telecommunications services provided over both mobile and fixed-line networks.

CSI stands for Customer Satisfaction Index.

Data user is a subscriber who has consumed any amount of data traffic within the preceding month.

Disaster Recovery — a service to restore IT systems and data after any failure.

DoS/DDoS (Distributed Denial of Service) means a hacking attack intended to disrupt a user’s system by hindering or stopping access to system resources (servers) for the user.

DSP (Demand Site Platform) — an automated system to purchase advertising space through auctions.

DWDM (Dense Wavelength Division Multiplexing) is a modern technology for carrying a large number of channels on the same fibre.

eNPS stands for Employee Net Promoter Score.

FCR stands for First Call Resolution.

FOCL stands for Fibre Optic Communications Line.

FTC refers to JSC First Tower Company.

FVNO stands for Fixed Virtual Network Operator.

GNOC stands for Global Network Operational Centre.

GPU-as-a-Service — a service providing virtual capacity based on graphics cards for scenarios that require simultaneous high-performance computing on a subscription model basis.

GRI stands for Global Reporting Initiative.

ICT stands for Information and Communications Technology.

IFRS stands for International Financial Reporting Standards.

IoT (Internet of Things) refers to interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data.

IoT-Gateway bridges the communication gap between IoT devices, equipment, sensors, and the cloud.

IPTV stands for Internet Protocol Television.

KPI (Key Performance Indicators) are performance metrics that help an organisation achieve its strategic goals and operating targets.

LTV (Lifetime Value) is an internal estimated assessment of the current value of the future cash flow per subscriber throughout the entire period of his or her relationship with MegaFon.

M2M (Machine-to-Machine) refers to technologies that allow both wireless and wired systems to communicate with other devices of the same type.

MPLS (Multiprotocol Label Switching) — a routing technique in telecommunications networks that directs data from one node to the next based on short path labels.

Network-as-a-Service — a service to assign all networking services for a client to one vendor.

NPS stands for Net Promoter Score.

OIBDA (Operating Income Before Depreciation and Amortisation) is a financial measure which should be considered as supplementary rather than as an alternative to the information provided in the financial statements of the Company. OIBDA margin means OIBDA as a percentage of revenue. The Company believes that OIBDA provides a better measure of the Company’s actual operational results including our ability to finance capital expenditures, acquisitions and other investments, and our ability to incur and service debt. While it does not take into account depreciation of property and equipment, amortisation of intangible assets and gain/(loss) from disposal of non-current assets, which are considered as operating expenses in IFRS, these expenses primarily represent noncash charges related to long-term assets acquired or constructed in prior periods. OIBDA is widely used by investors, analysts, and rating agencies as a measure to evaluate and compare current and future operating performance and to determine the value of companies within the telecommunications industry.

OTT (Over the Top) is a technology for online video data transmission from a content provider to a user’s device via data networks, often bypassing telecoms operators.

RDIF stands for Russian Direct Investment Fund.

RMICS stands for Risk Management and Internal Control System.

SoHo (Small office / home office) — market segment offering solutions for remote work.

tNPS stands for Transactional Net Promoter Score.

TWAMP (Two Wire Active Measurement Protocol) — a flexible method for measuring round-trip IP performance between any two network devices.

VAS stands for Value-Added Services.

VAT stands for Value-Added Tax.

VHI stands for Voluntary Health Insurance.

VoLTE (Voice over LTE) is a voice streaming technology using an LTE network.

VST stands for Video Start Time.