Our Strategy

Strategy implementation in 2021

In 2021, MegaFon continued to recover from the COVID-19 pandemic. We were able to smooth out the negative effect — achieved by implementing strategic projects — and boost key business metrics, such as service revenue, LTV, NPS and subscriber base. Our key focus areas were improving the quality of customer service and enhancing customer experience, delivering focused growth beyond the telecommunications industry, improving operational efficiency, streamlining business processes, and transforming the corporate culture.

“In 2021, having recovered from the pandemic, MegaFon redefined its strategic priorities and focused on the core business. We want to gain much more customer trust by further improving customer experience, internal processes for managing our product portfolio, sales and customer service, as well as regional management processes and approaches to network construction.”


Director for Strategy and Business Development

Growth of key metrics in 2021

+4.4%
Service revenue
+5.7%
Customer base
+9p.p.
NPS growth1
Continued solid
growth
LTV2
  1. NPS stands for Net Promoter Score.
  2. Lifetime Value (LTV) is an internal estimate of the present value of the future cash flow per customer throughout the entire period of his or her relationship with MegaFon.
Growth of key metrics in 2021

Key achievements in 2021

Customer experience

  • Changes in the Company’s external positioning
  • Reorganisation of the Commercial Division and strengthening of the customer experience function
  • Updates of the product cycle and changes to the product portfolio management process

Corporate culture

  • Launch of the corporate culture transformation through the development of new values
  • Launch of a number of new initiatives to build long-term relations with employees

Effectiveness and optimisation of business processes

  • Updates of the regional management model with a focus on the customer
  • Development of a distribution network comprising own and partner channels
  • Maintaining a stable network and implementing a smart approach to investing in its development

Growth beyond the telecommunications industry

  • Further expansion beyond the telecommunications market by developing B2C sales of partner products
  • Further development of VAS services in the B2B segment
  • Implementation of a number of appealing ICT projects in the B2X segment

In 2021, MegaFon also implemented many partnership projects, including the following key projects:

  • Increasing MegaFon’s share in the START video service to 50%
  • Launching the MegaFon Plus multi-subscription platform comprising ivi, START, MyBook and SberZvuk services with savings of over 60% for subscribers
  • Closing a deal with Kismet Capital Group and establishing a leading independent federal player in the Russian tower infrastructure market
  • Establishing Digital Holding, a joint venture with USM Telecom and partners from Uzbekistan, set to become the technology leader in Central Asia’s largest telecom market
Key achievements in 2021

Updated strategy for 2021–2023

In 2021, MegaFon updated its development strategy, focusing on the customer and a culture of continuous improvement aiming to make its customers, employees and shareholders happy.

Updated
strategy

Updated
strategy

Happy customer

MegaFon continues its efforts to improve customer experience for a better insight into customer needs. We began to shape a new segment approach, covering the entire customer lifecycle and taking into account the latest changes in the Company’s operations.

Another focus area will be enhancing operations in regions, primarily transforming MegaFon Retail and reinforcing sales channels and infrastructure.

In the B2X segment, MegaFon will maintain its priorities and focus its efforts on strengthening its leadership in the core business, boosting revenues and developing high-tech projects. In the B2G segment, emphasis will be placed on enhancing new digital solutions for ICT clients.


Indicators to measure customer satisfaction:

NPS

Customer base

LTV

Happy employee

Our people are our key asset, and we are well aware that it is the team that builds the business. Striving to be the employer of choice for its employees, in 2022, MegaFon will focus on transforming the corporate culture and creating an environment conducive to building longterm relations beneficial for its employees.

The Company’s strategy envisages updating its value proposition as an employer and market positioning while paying particular attention to creating an environment that encourages professional growth.

Another focus area will be promoting a culture of leadership and high performance, as well as setting up an effective environment for continuous improvement.

One of the key strategy points will be smart management of human capital through the digitisation of HR processes based on big data to improve the quality and speed of decision-making.


An indicator to measure employee satisfaction:

eNPS1

Happy shareholder

MegaFon will continue working towards the Company’s long-term financial goals, increasing operational efficiency across all lines of business and boosting cash flow to meet shareholder expectations. In addition, MegaFon will continue searching for ways to monetise non-core assets.


An indicator to measure shareholder satisfaction:

Cash flow

  1. eNPS stands for Employee Net Promoter Score.