Russian mobile operator MTS plans to reduce capital expenditure by around RUB 5 billion annually during the next two years, CEO Andrey Dobovskov told Vedomosti. Capital expenditure will amount to approximately RUB 85 billion in 2016 and around RUB 80 billion in 2017.
Capital expenditure can be reduced as the operator completes the deployment of the GPON network in Moscow by its fixed subsidiary MGTS. The roll-out should finish this year. MTS said it doesn't plan to expand its GSM network and will also slow down the LTE network expansion.
Capital expenditure had been high more recently due to the need to comply with licensing requirements. In August MTS increased its guidance for capital expenditure this year to RUB 92 billion from an earlier estimate of RUB 85 billion. This is due to expected higher spending on the 3G roll-out in Ukraine.
