ROSTELECOM PJSC (RKMD)
ROSTELECOM PJSC: Rostelecom releases Special Report on 5G potential to
transform Russian economy
10-Aug-2020 / 15:05 MSK
Dissemination of a Regulatory Announcement that contains inside information
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Rostelecom releases Special Report on 5G potential to transform Russian
economy
Moscow, Russia - August 10, 2020 - Rostelecom PJSC (MOEX: RTKM, RTKMP;
OTCQX: ROSYY), the largest integrated digital service provider in Russia,
today announces the release of a research paper "Global Trends, Potential 5G
Development and Use Scenarios across Sectors [1]". This is the first market
study into opportunities of mobile 5G networks integration and its
contribution to real economy in Russia.
Key takeaways:
? Highest demand expected in healthcare, transportation, public security,
leisure and urban infrastructure
? Continuous development of 5G as a platform for industrial digital
services
? Data processing remains the most highly relevant within Smart
applications in selected sectors
? 5G expected to be the key driver for AR/VR, Unmanned Aerial Vehicles
The research looks at 44 new digital services expected to have significant
impact on traditional sectors, business processes, operational and
monetisation mechanisms within. The analysis includes insights on consumer
perspectives on 5G and growth factors driven by potential demands and
integration opportunities.
Mikhail Oseevsky, CEO & President of Rostelecom, commented: "This white
paper is an important step for Russia - an actionable call for leading
industries to join their efforts in order to create new 5G-basedbusiness
models, which can accelerate economic growth and ensure its sustainability
in a rapidly changing world. We tried to portray the future which will
become a reality with the potential wider application of 5G in Russia across
various sectors and businesses.
Today, the emergence of 5G technologies and networks in countries that have
started to roll them out, is leading to creation of brand-new digital
marketplaces. What should drive next generation technologies is stronger
integration and partnerships among operators, digital developers, hardware
manufacturers and consumers. We hope that this new study will become a
useful guidance for companies operating in various sectors and will shed
light on hidden opportunities that drive growth. As the largest integrated
digital service provider in Russia, we believe that we are well-positioned
to become a trusted 5G advisor to our clients".
The research explored over 120 global digital transformation cases across
the globe, carefully selected to ensure a representation of ground-breaking
projects based on their investibility, commercial potential and tangible
operational and financial results they helped achieve with the use of 5G.
Boris Glazkov, Vice-President for Strategic Initiatives, commented: "We
looked at a number of sectors and the nature of 5G application within, as
well as specific solutions that helped gain optimal efficiency and
performance. This is a new reality which opens up tremendous opportunities
with all the great things that come with 5G to boost creativity and
leadership. As an ideal example of a general purpose technology, 5G is well
placed as an enabler of cross sector collaboration and applications across
industries. With the support programmes from Russian development
institutions which will start this year, the scale and pace of 5G networks
rollout in Russia will accelerate economic benefits for all market players.
We hope that this research will help operators and innovative companies
navigate through ideas and solutions which will soon become important
drivers of economic and business growth".
Further information is available at
https://www.company.rt.ru/en/ir/news_calendar/ [2].
* * *
Rostelecom [3] is the largest integrated digital services and products
provider, operating in all segments of the telecommunications market in
Russia. The Company serves millions of households, state and private
enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed
Internet access and pay-TV. The total number of broadband users stands at
over 13.4 mln users, it has more than 10.7 mln pay-TV customers, over 5.8
mln of which are subscribed to Rostelecom's IPTV services. Tele2 Russia, a
Rostelecom subsidiary, is a major player in the mobile market with over 44
mln subscribers and the industry-leading NPS, a customer satisfaction
benchmark.
During the first six months of 2020, the Group generated RUB 248.9 bln of
revenues, RUB 95.9 bln of OIBDA (38.5% of revenue) and RUB 15.4 bln of net
income.
The Group is the leading provider of telecommunications services to
government bodies and corporates of all levels.
Rostelecom is a key strategic innovator that provides solutions in the
following fields: E-Government, cybersecurity, data-centers and cloud
computing, biometry, healthcare, education and housing & utility services.
The Group's stable financial position is confirmed by its credit ratings.
Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings
by Fitch Ratings and Standard & Poor's respectively, and AA(RU) by ACRA.
* * *
Certain statements in this press release are forward-looking statements
within the meaning of the U.S. federal securities laws and intended to be
covered by the safe harbours created thereby.
Those forward-looking statements include, but are not limited to:
? Assessment of PAO Rostelecom's (the Company) future operating and
financial results as well as forecasts of the present value of future cash
flows and related factors;
? The Company's plans to take ownership stakes in other organisations;
? the Company's anticipated capital expenditures and plans to construct
and modernize its network;
? the Company's expectations as to the growth in demand for its services,
plans relating to the expansion of the range of its services and their
pricing;
? the Company's plans with respect to improving its corporate governance
practices;
? the Company's expectations as to its position in the telecommunications
market and forecasts on the development of the market segments within
which the Company operates;
? economic outlook and industry trends;
? the Company's expectations as to the regulation of the Russian
telecommunications industry and assessment of impact of regulatory
initiatives on the Company's activity;
? other statements regarding matters that are not historical facts.
Such forward-looking statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ materially from
those expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:
? risks relating to changes in political, economic and social conditions
in Russia as well as changes in global economic conditions;
? risks relating to Russian legislation, regulation and taxation,
including laws, regulations, decrees and decisions governing the Russian
telecommunications industry, securities industry as well as currency and
exchange controls relating to Russian entities and their official
interpretation by regulatory bodies;
? risks relating to the Company, including the achievement of the
anticipated results, levels of profitability and growth, ability to create
and meet demand for the Company's services including their promotions, and
the ability of the Company to remain competitive in a liberalized
telecommunications market;
? technological risks associated with the functioning and development of
the telecommunications infrastructure, technological innovations as well
as the convergence of technologies;
? other risks and uncertainties. For a more detailed discussion of these
and other factors, see the Company's Annual Report and the Company's other
public filings.
Many of these factors are beyond the Company's ability to control or
predict. Given these and other uncertainties, readers are cautioned not to
place undue reliance on any of the forward-looking statements contained
herein or otherwise. The Company does not undertake any obligation to
release publicly any revisions to these forward-looking statements (which
are made as of the date hereof) to reflect events or circumstances upon the
annual report publication or to reflect the occurrence of unanticipated
events, except as may be required under applicable laws.
ISIN: US7785291078
Category Code: MSCL
TIDM: RKMD
LEI Code: 2534001D752JPNM0H170
Sequence No.: 81072
EQS News ID: 1114393
End of Announcement EQS News Service
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