MegaFon expects growth to continue

20 Apr 2006

Russia’s third largest cellular operator MegaFon says it expects ARPU levels at its Moscow operations to remain stable even as it works to keep adding new subscribers. The firm says monthly ARPU has been stable at between USD18 and USD19.5 over the past three years, while many mobile operators of comparable size have experienced declines in user revenues. A Dow Jones report says the firm attributes its recent strong showing in the Moscow area, where it claims to have won 60% of all new subscriptions in the first three months of the year, to a new tariff plan which quotes prices in rubles and includes taxes. CEO Igor Parfyonov comments: “People thought that the ruble tariff was clear and transparent. It was much more popular than we could have ever imagined.” He added: “Other operators say that the market has reached saturation. For us, that’s not the case, for us it is still growing.” MegaFon, which is controlled by TeliaSonera, had almost 23 million subscribers at the end of 2005.

Russia, MegaFon