Products and Services
MegaFon’s core business is the provision of mobile services, with mobile data transfer remaining the most promising and strategically important service in recent years. Our efforts in this segment are focused on delivering better customer experience to heavy users of mobile data.
In 2021, the number of MegaFon’s mobile data users increased by 5.6% y-o-y primarily due to a number of updates to existing tariff lines and the launch of new tariffs relevant when COVID-19 restrictions were eased.
In 2021, taking into account the market situation, we made several updates and supplements to the tariff plans within the #NoOvercharges line. In particular, we offered a 20% permanent discount to retirees and students, and launched specific attractive offers with a 30% discount. We also launched a number of other attractive promotions for these tariffs, supported by advertising campaigns.
In 2021, MegaFon launched My Family, a free service offering unlimited voice and MegaFon Protection service for free within groups of up to 11 members. The group organiser can monitor the participants’ balances and allowances, top up their accounts from his/her own account and activate the Automatic Top-Up service.
Other customer segments also benefitted from our new offers such as the ‘Posekundny’ (‘Per Second’) tariff plan, the refreshed ‘Perekhodi na 0’ (‘Switch to Zero’) plan, the launch of ‘Internet DreamTeamHouse’ plan, and the further development of the ‘Teply Priem’ (‘Warm Welcome’) plan for people arriving from the CIS countries.
In 2021, MegaFon became the leader in mobile internet speed in Russia for the fifth consecutive year, outperforming other operators on all key metrics.1
MegaFon actively continued to deploy the VoLTE technology supporting high-quality voice services. In 2021, more than 13 million subscribers used this service. Along with Moscow and the Moscow Region, the technology spread rapidly in the Krasnodar Territory, Khanty-Mansi Autonomous Area, Nizhny Novgorod Region, and St Petersburg. On MegaFon’s network, the VoLTE technology operates using the Enhanced Voice Service codec capable of making phone calls seem as though the callers are standing right next to each other.
In 2021, MegaFon was the first mobile operator in Russia to launch VoLTE at the federal level2 and to provide this service to subscribers internationally in February 2022.
Developing products and services for data-enabled devices
Data services remain a priority for MegaFon, and in 2021, we continued to focus on data-enabled devices.
We relaunched the ‘Zakachaisya!’ (‘Get Downloading!’) tariff line with updated pricing, higher speed limits and new options, including extra space on MegaDisk, free MegaFon TV channel packages, subscriptions to Amediateka, START, more. tv, World Cinema, and many other options. We also ran a promotion for this tariff and offered a 50% discount for one year when renting a router in MegaFon Retail outlets.
As at the end of 2021, MegaFon provided international roaming in 230 countries (including respective territories) through 633 roaming partners. The list included 101 double partner countries, meaning they have at least two partner networks available to offer a full range of services to our roaming customers.
The list of countries where MegaFon subscribers benefit by default from attractive bundled tariffs, such as ‘Roaming, Goodbye’, was expanded in 2021 to comprise 170 countries. The new countries on the list include the Maldives, Cuba, the Seychelles, and Nepal.
In 2021, MegaFon provided 5G roaming in 37 countries — 50% of the countries where 5G networks have been commercially launched.3 In addition, MegaFon provided speed over 1 Gbit/s in 5G roaming for the first time.
- According to Ookla®, MegaFon provides the fastest mobile internet in Russia: in 2021, the average download speed exceeded 32.92 Mbit/s, and the average upload speed was 11.90 Mbit/s. Ookla® runs its independent survey globally on an annual basis. Its results are based on over 7 million speed tests run in the first half of 2021 via the Speedtest app on mobile devices owned by users across Russia. MegaFon has been topping Ookla’s ranking since 2017.
- Excluding the Chukotka Autonomous Area, the Republic of Crimea, and Sevastopol.
- Source: GSMA Intelligence.
MegaFon provides its fixed-line services for the mass market through its subsidiary NETBYNET1.We offer our customers high-speed broadband, digital TV and telephony, as well as virtual private network (VPN) connectivity and line leases.
Our 2021 key focus areas in fixed connectivity included the development of networks through FVNO2 partnerships in cities outside NETBYNET’s footprint, as well as targeted expansion of coverage in our key cities and growing the number of private properties connected to fixed lines.
In 2021, the Company focused on promoting services across all channels under the MegaFon brand as previously they had been provided under the WiFire brand. Our strategy is to gradually migrate the fixed-line subscriber base to MegaFon’s converged products. We plan to add in-demand solutions to our fixed connectivity portfolio in 2022.
Fixed-line communications for the mass market
We continued to develop the ‘Obyedinyai!’ (‘Combine!’) converged tariff, which bundles mobile, residential broadband and TV services. In 2021, we launched promotions to grow our subscriber base, including a three-month 50% discount for the ‘Combine! For Friends’ and #ForHome ‘Turbo’ tariff plans with a router free of charge, a progressive discount on all plans in the #ForHome tariff line, and many more.
Fixed-line communications for business
NETBYNET offers a wide range of telecom services to corporate customers. In addition to traditional communications services, we provide cloud services such as Virtual PBX, Wi-Fi with Authorisation, Wi-Fi Radar, digital TV for business, cloud video surveillance, and others. NETBYNET also has an extensive track record in implementing integrated telecom solutions and varied scale integration projects.
In 2021, we started integrating NETBYNET’s and MegaFon’s business processes, delegating the functional and administrative management of the corporate fixed-line segment to the Company. This helped to boost NETBYNET’s operational efficiency, and gave the customers of both companies access to a range of special deals for customers taking up simultaneously fixed-line, corporate mobile and cloud services. MegaFon’s benefits included expanded regional coverage.
- LLC NetByNet Holding (the WiFire brand), a wholly-owned subsidiary of PJSC MegaFon. In 2020, the Company integrated the WiFire business into the MegaFon brand.
- FVNO stands for Fixed Virtual Network Operator.
Innovative Products and VAS
MegaFon strives to tailor its services to subscribers’ needs in all aspects of life: communication, phone account management, books and games, music and online video streams, dating, press, and other daily services. To align our offering with the needs of MegaFon customers, we develop and create services to form an open ecosystem.
In 2021, MegaFon subscribers signed up to more than 5 million partner products integrated with our unified billing system.
The open ecosystem model uses three approaches to product launch: first, through a strategic partnership model to quickly integrate a partner product into our billing system; second, through participation in another service; and third, through in-house products developed from scratch.
Developing VAS1 services, we focus on several areas, such as digital products, financial services and promotion management via digital marketplaces and voice channels.
We create better services:
- in partnerships with market leaders
- through M&As
- through in-house development
the best services
- VAS — Value-Added Services. This refers to services that are provided via additional platforms rather than via the core network.
the best services
B2C development in 2021
- In September, we launched MegaFon+, our own multi-subscription platform, including ivi and START video services, MyBook, and music from SberZvuk. The subscription is available for subscribers of any operator.
- Free access was provided to Apple Music for 6 and 12 months.
- A number of initiatives were implemented to customise content through the use of recommendation engines for MegaFon.TV. New partnerships with Kinopoisk and PREMIER services were also launched, with as many as 11% of MegaFon.TV users connected by March 2022.
- Further cooperation with other market leaders, such as Yandex, ivi and the START online video streaming service, where MegaFon is an investor.
- Expansion of the subscriber base eligible for a personal. New scoring models significantly reduced the accounts receivable to revenue ratio of Promise to Pay service, driving OIBDA from services.
- Active development of top-up channels, especially digital options, resulting in more than 50% growth in automatic top-ups via MegaFon marketplaces.
- New digital sales channels — ‘Dlya Menya’ (‘For Me’) with personalised offers and Services with a marketplace gathering all partner offers in the MegaFon mobile app.
- Enhancement of sales channels using voice bots and improvement of speech technology to emulate conversation to the point that it is almost indistinguishable from a human.
- Almost double growth in the subscriber base coverage by the voice channel.
MegaFon is consistently expanding its business beyond the telecommunications industry by developing its product segments. In 2021, we focused on new promising technology and business trends, such as cloud solutions, information security, big data, customer communications, and the Internet of Things.
The B2X service mix is balanced and includes 8 product segments with more than 75 products. In 2021, MegaFon introduced 8 new products and 12 updates.
B2X revenue growth in 2021:
- The B2X MegaFon service line includes B2B (business-to-business), B2G (business-to-government) and B2O (business-to-operators) services.
|2021 key developments and highlights||List of service|
|Voice and smart services|
|An automated service for processing text messages on websites, social networks, in messengers and e-mail. This is a hybrid solution combining a software algorithm and a call centre interface for operators.||
|A cloud videoconferencing service for companies of up to 100 people. Videoconferences can be accessed without registration and offer an array of collaboration tools for users.||
Videoconferencing for business NEW
|MultiFon Business, a cloud platform with a web interface and embedded telephony, which allows creating a company’s own voice bot and does not require any special skills in developing or script writing.||
Voice bot NEW
|New options, Big Business and Highly-Charged Conversations, were added to the existing smart telephony services.||
|Cloud-based platforms and infrastructure solutions|
|A cloud anti-spam and anti-virus service, which reduces the risk of data leakage while saving system and storage resources.||
Corporate e-mail protection NEW
|An information security training platform for employees with easy-to-understand content and knowledge tests based on phishing attack simulations.||
Security Awareness NEW
|A cyber intelligence platform to prevent cyberthreats, allowing businesses to protect their customers from mobile fraud.||
Threat Intelligence NEW
|New functions Anti-Bot Protection and API Protection.||
|Launch of cloud protection for web resources.||
|Analytical and advertising services|
|A single interface for reliable communication with the audience over mobile digital channels.||
MegaFon Hub NEW
|Launch of a video advertising service.||
Last mile delivery of internet connection using Multi-SIM and traffic aggregation technologies.
Launch of the service in the Moscow branch.
|The Navigation and Monitoring of Vital Signs services were added to the platform’s existing functions.||
|A multi-vendor approach was implemented for the first time.||
Private LTE Network
|Internet of Things and ICT|
|Launch of an IoT gateway,7enabling communication between IoT devices connected to an IoT platform. The solution converts multiple communication protocols of IoT devices into one or more standard protocols for subsequent processing on the platform.||
Online Water Monitoring
|Online and partner services|
|Online channel efficiency improved though optimising the website structure and navigation.|
- Disaster Recovery — a service to restore IT systems and data after any failure.
- Backup-as-a-Service — a cloud hosting service that back ups data, ensuring stable business operations.
- 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.
- Professional Services — services to outsource IT functions, including software and hardware support.
- Demand Site Platform (DSP system) — an automated system to purchase advertising space through auctions. The system enables buying advertisements on multiple sites within seconds, drawing on MegaFon’s knowledge of its subscribers.
- Network-as-a-Service — a service to assign all networking services for a client to one vendor.
- IoT gateway bridges the communication gap between IoT devices, equipment, sensors, and the cloud.