Telecom operator MTS, listed on the MOEX as MTSS, has announced plans to raise several tariff plans by about 10 to 12 percent starting at the end of September. The official rationale centers on the costs tied to upgrading infrastructure to accommodate rising network traffic and the need to sustain a high level of service quality. Even with the anticipated price increase, MTS reported a 7 percent reduction in capital expenditures for the first half of the year, totaling 37.4 billion rubles. Analysts note that price adjustments are a common response across the sector. A leading Russian business daily reported that the Federal Antimonopoly Service has already examined the trend and had previously mandated MTS and Megafon to revert some taxes to their earlier levels. This context helps frame the broader industry response to rising costs and investment needs that have been unfolding since last year, as discussed in Kommersant.
Customer notices via SMS indicate that, from September 28, the two affected tariffs will experience an approximate 12 percent price rise. The company also stated that the monthly subscription for a subset of archived tariffs will increase, though by less than 10 percent. MTS emphasized that the overall value remains favorable because several archived tariffs have maintained their subscription fees for multiple years.
From the carrier’s perspective, the tariff hike is driven by higher equipment maintenance costs and a continued push to expand and modernize networks in response to growing traffic volumes. This aligns with a broader industry pattern in which operators adjust pricing to cover rising operating expenditures while preserving service reliability and network performance.
Other market players are implementing similar recalibrations. In particular, Yota, a mobile virtual network operator operating on Megafon’s infrastructure, is phasing out some archived tariffs as of September 22. The firm describes these changes as technical rather than direct price increases, signaling a restructuring of legacy offerings rather than an across-the-board price policy shift.
Megafon and VimpelCom have signaled tariff revisions, with some plans seeing increases of up to 20 percent announced for March. Company representatives indicated that these adjustments were made within economically justified parameters and have been disclosed to the Ministry of Digital Development and the Federal Antimonopoly Service. At present, Megafon does not expect to adjust tariffs for existing customers in the near term, though future changes remain possible as market conditions evolve.
Maksut Shadayev, head of the Ministry of Digital Development, has underscored that tariff changes must be justified by corresponding investment spending. He emphasizes accountability for spending that supports network expansion and service improvement, reinforcing the government’s stance that pricing should reflect sustained capital investment.
The Federal Antimonopoly Service has pledged to monitor pricing moves carefully and to request information from operators about any increases. If violations of anti-monopoly rules are detected, the agency is prepared to take enforcement actions. Last year, the FAS ordered MTS and Megafon to revert to previous pricing levels after finding unfair price increases. These developments illustrate the ongoing balance regulators seek between market competition and the need for ongoing network investment.
In the broader regulatory context, industry observers are watching how operators justify price changes and how these actions align with state guidance on investment in communications infrastructure. The balance between consumer protection and the incentives necessary to fund network improvements remains a focal point for policymakers and industry players alike. The conversation continues as operators navigate costs, capital expenditure plans, and the competitive dynamics of the Russian telecom market.
Note: The preceding overview reflects reported industry actions and regulatory responses as observed in recent public coverage, with attribution to the cited outlets and the parties involved. The information is subject to change as new data emerge and regulatory interpretations evolve.