LEADERSHIP IN TELECOMMUNICATIONS

MISSION AND STRATEGY FOR FURTHER DEVELOPMENT

2020 has become a test of our ability to adapt and respond to changes in the external environment, unprecedented in the past years, and Viva-MTS has confidently coped with this challenge. We managed to take advantage of the growing demand for mass-market telecommunications and digital services, which enabled us to raise and achieve the target levels of Market share in terms of revenue and subscriber base. Viva-MTS Revenues Market Share without Retail Business has been improved by 1.03pp compared to 2019, and Subscribers Market share by 3.31pp.

Another indicator of leadership is gross addition and Viva-MTS has a 0.43pp improvement in Gross additions market share compared to 2019. Covid-19 demonstrated that the telecommunications industry is essential to maintain a usual lifestyle around the world and in Armenia in particular. Remote work, education, medicine - largely depend on the telecommunication industry. Most of our subscribers were buying and using our “X”, “Y”, “Z” tariff line for education, online meetings and for everyday communication during lockdown via applications that have become an integral part of everyday life, such as “Zoom”, “Skype”, “Telegram”, “Viber”, “WhatsApp”, “Messenger”, “Facebook”, and “Instagram”. Our “X” tariff plan users were watching “YouTube” videos and “Netflix” movies online.

Revenues Market Share W/O Retail Bussines

3M Subscriber Market Share

Gross Additions Market Share

As a Mobile data leader in the market with 63.4% market share of 3M data subscribers, Viva-MTS is the first introducer of innovative V&D (voice & data) tariff plans with unlimited usage of most used applications. Viva-MTS took the next step in 2020 by moving away from 1MB data pay-as-you- go charges, and all our V&D tariff plans subscribers have worry-free internet usage experience.

The Company went even further and presented a new line of “+” services with +3GB/10GB data passed with affordable prices for even more comfortable data usage experience.

Due to the pandemic situation and the ensuing lockdown, we also faced increased demand for content services usage and mobile/ online payments. The increased demand for content was met by diverse applications such as “Apps Club” and “Kids Club” (games and entertainment), “Fitness Club” (sport), “#LikeU” (dating), “IVI” online cinema, “Fantasy League: (Football games), “E-Teacher” (English course), etc. Via “MobiDram” payment application, subscribers were offered the opportunity to perform diverse online payments.

Although internet-based messengers have very high penetration in Armenia, traditional SMS seems to be more reliable for Armenian businesses. Bulk SMS services provided to the business segment are very popular, and we are currently working on a new interface to make the provision of services more efficient and customer-friendly.

Data Revenues, AMD

3M Data Subscriber Market Share