Mobile TeleSystems Public Joint Stock : MTS Expands into Smart Cars

Daily life is increasingly becoming saturated with digital devices, apps, and content. While the quantity of information continues to grow, the layout of the hardware landscape of the future is beginning to become clear. In most cases, the data we really care about gets channeled through just a handful of devices: smart phones, TVs, speakers, tablets and - to a declining extent - personal computers.

But there is one remaining device that is increasingly joining the lineup: the automobile. For many of us, our cars are one of the last remaining personal environments that still fail to provide an immersive digital experiences. Many of us spend hours every day driving with nothing more than a docked smartphone as a window to the digital world.

The situation, however, is beginning to change as the digitalization of the automobile picks up steam. Auto manufacturers are integrating ever more sophisticated screens and electronics into new car models, and after-market suppliers are providing an expanding array of products to help bring intelligence to the millions of cars already on the road more.

That's why today we are happy to announce the launch of a new MTS business line aimed at providing technologies and services for the smart car market: MTS Automotive. And to help jump start our efforts in this area, we recently acquired two leading Russian developers of onboard multimedia head units and infotainment systems, STOPOL AVTO, LLC and KOAGENT Rus, LLC, which will be key cornerstones of the new division.

'Expanding into in-car entertainment is a logical move complimentary to our broader strategy to build a customer-centric digital ecosystem,' said Vyacheslav Nikolaev, MTS First Vice President for Customer Experience, Marketing, and Ecosystem Development. 'Infotainment systems are an additional digital gateway we can use to deepen interaction with end users,' he said, adding that 'beyond high-speed mobile connectivity, MTS is moving forward on smart car technologies, such as testing the latest 5G developments, offering solutions in M2M and IoT, and integrating onboard digital infotainment and payment technologies together with our partners.'

The two companies joining MTS are already established partners of some of the leading companies in the Russian automotive industry, including car producers such as Toyota, Renault, and Nissan, as well as software developers such as Yandex and Navitel. 'Acquiring these smart car device suppliers will strengthen our expertise, capabilities and footprint, as well as enable us to offer comprehensive solutions for the modern car that bring together connectivity, multimedia, and digital services,' Nikolaev added.

As emerging services such as carsharing and ride-hailing continue to grow, digital mobility looks set to have a bright future. Today's announcement reaffirms MTS's commitment to be a regional leader in this critical segment as we help pioneer fit-for-purpose solutions for the modern digital lifestyle.