Moscow, Russian Federation – Mobile TeleSystems PJSC (“MTS” or "the Company" – NYSE: MBT; MOEX: MTSS), the leading telecommunications provider in Russia and the CIS, and Ericsson (NASDAQ: ERIC), a global leader in communications technology (ICT), today announce the signing of a cooperation agreement on the research and deployment of 5G networks in Russia. Together, the two companies will conduct network trials and develop technical requirements for the new telecommunications standard. The outcome of the partnership will directly lead to test solutions and scenarios for 5G employment as well as launch of a 5G trial zone during the 2018 Football World Cup in Russia.

5G networks will allow users to share information in real time mode at speeds in excess of 10 Gb/s, 30 times faster than the speeds currently available on 4G networks. 5G technology will ensure minimal latency on data downloads and greater network throughput capacity. Compared with previous network standards, 5G will comprise a greater number of base stations and various radio-access solutions with smaller broadcast areas operating in the 5GHz to 100 GHz bandwidth. The International Telecommunication Union plans to implement the new standard by 2020.

Commenting on the agreement, Mr. Andrey Ushatskiy, MTS Vice President, Technology and IT, Chief Technology and Information Officer, said, “Despite the fact that requirements for the network standard are only beginning to form, we believe it is of great importance to begin its development today by signing this agreement with Ericsson. In order for both sides to gain a comprehensive understanding of performance solutions for 5G networks in Russia by 2018, we plan to start testing our key vendor’s developments through a series of pilot projects on the MTS network next year. By proactively working through the process of 5G standardization, we will be ready to build the first stages of a new network that will dramatically change our lives and the role of things around us. It will empower people and broaden horizons in the home, education, medicine, science, transport, and entertainment, among other areas.”

Jeff Travers, Head of Customer Unit at Ericsson Northern Europe and Central Asia, said:
"Together with our partners and other leading operators, Ericsson is driving 5G technology development to provide higher data speeds, lower latency and high levels of connection reliability. This project marks an important milestone and brings the development of highly innovative technologies to Russia. By 2018, we plan to not only conduct research, but also test and implement key technologies that will improve MTS network performance and application coverage. 5G will revolutionize user experiences in mobile technology during the FIFA World Cup in 2018."

Under the agreement, the two companies will cooperate in the following areas:

• Joint dialog with regulators about the use of the frequency spectrum for 5G;
• The implementation of a pilot project in LTE-U (LTE-Unlicensed) / LAA (Licensed-Assisted Access) that involves the use of the LTE radio interface in the unlicensed 5GHz band together with Wi-Fi access points in 2016. The solution will provide better coverage and capacity, combining existing Wi-Fi networks with mobile network resources;
• Testing of Ericsson Lean Carrier technology for its use in 5G. The solution optimizes signaling traffic between cells, eliminates interference, simplifies network planning, increases data speed rates and improves coverage;
• Pilot the demonstration of new radio interfaces for M2M communications: EC-GSM (Extended Coverage GSM), LTE-M (LTE Machine), NB-IoT (Narrow band IoT LTE based). Decisions will protect the frequency spectrum, improve coverage, cut power consumption and reduce the cost of devices for the Internet of Things;
• The deployment of 5G pilot solutions using high-speed data transmission in the 15 GHz band in 2017;
• Construction of the test area for the demonstration of 5G technology solutions during the 2018 football World Cup 2018 in Russia.

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems PJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru