News Release

MTS and Cisco Build the First Intelligent Network Self-adjusting to Subscribers’ Demands in Russia

Moscow, Russian Federation — PJSC MTS (NYSE: MBT, MOEX:
Feb 24, 2016

Moscow, Russian Federation — PJSC MTS (NYSE: MBT, MOEX: MTSS), the leading telecommunications provider in Russia and the CIS, and Cisco (NASDAQ: CSCO), a world leader in networking, announced the completion of the first phase of Cisco’s Self Optimizing Network (SON) solution deployment for MTS networks, which allows MTS to automate network optimization in real time to improve the quality of voice and data services.

Cisco’s SON solution automatically analyzes a network elements’ load and performs proactive online adjustment of the network parameters, while dynamically adapting the network capacity in line with subscriber traffic profile changes. The technology has been successfully deployed for MTS’ 3G network in Moscow and Moscow region. In 2016, MTS will deploy Cisco’s SON solution for Moscow region LTE networks and will then optimize heterogeneous networks including small cells. MTS will also introduce similar systems in other regions of the Russian Federation. Cisco’s SON pilot project has been deployed in Sochi since Winter 2014.

"MTS is the first Russian operator to adopt and fully deploy a SON solution designed to dynamically optimize its networks. The solution significantly improves the network performance and directly impacts our subscribers’ experience. When used under heavy loads, Cisco’s SON solution helped to increase data speed on average by 20%, network availability by 25%, and decrease dropped calls by about 10%. It enables MTS to both improve the quality of services and reduce the network build-up costs through optimization of base station interoperation,” said Andrei Ushatskiy, Vice President, Chief Technology and Information Officer, MTS.

“We are delighted that MTS has selected Cisco SON to optimize its network. We believe that our relationship will continue to support this development, and help ensure the MTS customers get best quality of service”, said Scott Morrison, Vice President, General Manager, Cisco SON.

Cisco’s SON is the most mature SON solution on the market today. It is already being deployed by Tier 1 service providers and mobile operators helping to optimize more than a million cells in 3G and 4G networks around the world.

Cisco SON-Powered Business Solutions explained in the attached video:

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