Innovation

Innovation

Dennis Nochevnov, Director of New Technologies and Services:

“Today, innovation is a fashionable term. Many people use it to make a point or not, just because it sounds good. Meanwhile, for us at "MegaFon", and for the entire telecommunications industry in general, innovation is not just a word, but really an integral part of our work. Everything connected with our business involves innovation. We are constantly seeking to create and implement something new: technologies, solutions and projects. Innovation is our life.”

Facts and Figures

The Ministry of Communications of Russia jointly with the Ministry of Economic Development of Russia and the Russian Ministry of Education were tasked to develop a draft concept for the innovative development of telecommunications and information technology - as requested by the President of the Russian Federation (on May 23, 2010 № Pr-1473). "MegaFon" and other leading telecommunications companies joined the working group for the preparation of the project.

According to statistical reports, the proportion of high-tech industries and "disciplines" accounts for 10.5% of Russia's GDP (gross domestic product). The contribution of innovators in annual GDP growth is estimated at 1.3 percentage points.

The Innovation Economy was first introduced in the U.S.A. The famous American futurologist Alvin Toffler marked 1956 as its beginning.

In 2010, the state allocated 1.1 trillion rubles for science, innovation projects and federal programs.

The theory of innovation entered into the active vocabulary of politicians and economists only in the 1970s. The first wave of innovation came in the late 1970s - early 1980s, due to the acceleration of scientific progress and the beginning of the information age, that many small companies came into being. Some of them, such as "Microsoft", "Apple" and "IBM" soon grew into giants.

It is from the development of information technology the innovation breakthrough of the 1980s began.

How are the ideas born that "MegaFon" brings to life? Their basis is a belief in the triumph of technology, creating new opportunities for communication, as well as the desire to make this technology accessible to people.

Innovation is the key to success in today's telecommunications market, which was formed as a result of decades of active searching for new technologies in the field of communications. When we say that "the future depends on you," we are declaring that this is our approach to the development of new services. Much of what seemed impossible before, is now a reality. Just a few decades ago, even the idea of cellular communications seemed impossible, but now you are even using your mobile to arrange video calls. And the first such call in the history of Russia was made on a "MegaFon" network.

The experience of "MegaFon" has allowed us to form a special approach to the development of the company, based on the consistent implementation of innovations that enable us to always be one step ahead. We understand well that the technological advantage that we have reached is not the ultimate goal. We can be sure in our future only by constantly improving.

"MegaFon" was the first in Russia to put into operation a network using the third-generation UMTS standard, and by the end of 2009, we became the market leader in 3G both in terms of revenue and number of users, and in the network and infrastructure area of coverage. As a result, third-generation networks are already available to our subscribers across the country today.

"MegaFon" is constantly developing existing services and offers customers a new look at already well-known services. In July 2009, we launched the service "MultiFon" in Moscow. This service allows you to use the Internet for making standard and video calls, chat, and send SMS and MMS. But unlike similar solutions, "Multifon" allows the subscriber of "MegaFon" to use these popular services using his mobile number.

In 2011, a unique service "Videogudok" (video dial tone) became available on the "MegaFon" network. When making a video call, it allows you to replace the standard waiting tone with a music video or an interesting video. The service was launched in the North West region and the Volga region, but today it can be used throughout Russia.

Also in 2011, "MegaFon" together with Visa introduced an innovative project in the area of mobile commerce: an online card for online payments. Thanks to this service, it is now very easy to purchase all types of goods and services: online games, air tickets and railway tickets, music, movies, and also make purchases in iTunes, PayPal, or App Store for up to 15 thousand rubles. The main advantage of the "MegaFon-Visa” Online card, compared to the majority of other virtual cards, is that your account balance is tied to your mobile phone, so you can just as easiley pay it or increase it.

Our specialists and designers are always oriented towards the needs and interests of users, for which one type of service or another is designed. We try to satisfy their needs as much as possible.

Direct dialogue with our clients allows us to organize the most effective feedback from consumers. "MegaFon’s" unified Federal research and development center located in St. Petersburg, is now open to visitors. There you can personally test new services. Our Center is a testing ground where specialists are testing the latest equipment, developing and realizing their technological ideas, and shortening the path from the creation of new services to their implementation.

"MegaFon" innovations are also closely aligned with the implementation of major infrastructure projects. In autumn 2009, we completed the construction of the "European Grand Circle" of fiberoptic communication lines (FOCL), which brought together into one network multiple сities from the five federal districts of Russia, from Murmansk to Makhachkala. The total length of the "MegaFon" FOCL reached 22,030 km in 2009, and by the end of 2010 this parameter was further increased.

"MegaFon” also continues to constantly grow its own DATA centers that process massive volumes of data. In the Volga region DATA-center is now open and it is not only the largest center in the company's network, but in all of Russia.

The presence of "MegaFon" cellular networks across all Russian regions imposes a special responsibility on us. Today, mobile is a key strategic tool of communication. In 2010, our company created Russia's first mobile Situation Center to ensure uninterrupted communications in all types of emergencies. “MegaFon” and the FGC signed cooperation agreements for the Situation Centers that launched the exchange of operational and planning information for addressing issues of prevention and the mitigation of accidents and emergencies. By implementing these types of new projects, we make a significant contribution to the transition of our economy in an innovative way.

Innovation is the essence of our work. We strive to predetermine market trends and to predict the future needs of our clients. It is through the combination of these sequences, professionalism and innovation, that we see the success of "MegaFon".