Rostelecom — Regulatory Filings 2018

Nov 21, 2018

ROSTELECOM PJSC (RKMD)

21-Nov-2018 / 14:47 MSK Dissemination of a RegulatoryAnnouncement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

Prеss Rеlease	Press Inquiries
Innоpоlis	Dmitriy Zakharov
November 21, 2018	+7 (925) 500-10-83
	Dmitriy.L.Zakharov@rt.ru

3GPP confirms compliance of Rostelecom5Gtrials with 3GPP most advanced standards

Moscow, Russia - November 21, 2018 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that based on 3GPP Mobile Excellence Centre's analysis its 5G mobile trial operation was recognized as fully compliant with industry-leading technical standards and best practices in communications and ready for commercial launch..

The trial operations have been in place in the innovation city of Innopolis in the Republic of Tatarstan since May this year. The next generation mobile network was deployed by Rostelecom in association with the Republic of Tatarstan's Ministry of Informatization and Communications and Tattelecom communications provider. As a technology partner Huawei provided equipment for the projects. The trial operations are used to carry out market research of services provided with the use of 5G networks, demonstrate commercial opportunities and search for effective business solutions. According to 3GPP, the trial operations meet all technical standards of 5G networks.

The high capacity (up to 2.1 Gbps per sector) of Rostelecom 5G network and low delays of about 1-3 milliseconds allow for video broadcast of major events in real time in 4K and 8K Ultra HD mode, connect AR and VR devices, conduct virtual tours. Particularly promising is 5G application for unmanned vehicles, smart cities and setting high-speed communication infrastructure where laying the last mile is too expensive or impossible. It is also relevant in provision of communication services in public and crowded places such as airports, railway stations, stadiums and music sites. The advantages of 5G were highlighted in Innopolis by the example of LoudPlay gamers' service. This includes rental of computing power in the cloud to run high-speed computer games in Full HD resolution on obsolete and low-powered computers and mobile devices.

Adrian Scrase, CTO at ETSI and Head of 3GPP Mobile Excellence Centre commented: "Rostelecom 5G trial operations meet all most advanced technical standards in communications and have witnessed impeccable practical implementation of a complex service for computer gamers that requires a high-speed Internet connection and low latency, so we're absolutely confident, that already now Rostelecom is ready to launch commercial operation in 5G segment".

Rostelecom was allotted 3,5 GHz sub-band by Russia's State Commission for Radiofrequencies to perform 5G trials ahead of expected launch of commercial 5G mobile networks in Russia in 2020.

5G- is a newgeneration of mobile communications, further development of previous standards (GSM, 3G, 4G/LTE). Commercial operation of 5G is expected to start after 2020. The record data transmission speed in 5Gnetwork trial operations was as high as 25Gbps. Such values raise the possibilityto broadcast videos online in 4Kand 8KUltra HDresolution.

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PAORostelecom is the largest digital service provider, operating in all segments of the telecommunications market and covering millions of households in Russia. Rostelecom is an undisputable leader of the broadband and pay-TVmarkets in Russia with over 13.0 million fixed-line broadband subscribers and over 10.1 million pay-TVsubscribers, over 5.1 million ofwhich are subscribed to Rostelecom's IPTVservices on the national level.

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In the nine months of 2018, theGroup generated RUB233.0 billion of revenues,RUB74.9 billion ofOIBDA(32.1%of revenue) and RUB12.7 billion of net income.

TheGroup is a market leader in providing telecommunications services to government bodies and corporates of all levels.

Rostelecom is an important innovator that provides solutions in the field of E-Government, cloud computing, healthcare, education, securityand housing &utility services.

TheGroup's stable financial position confirmed byits credit ratings.Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings byFitch Ratings and Standard&Poor's respectively, and AA(RU) byACRA.

Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered bythe safe harbours created thereby.

Those forward-looking statements include, but are not limited to:

Assessment of PAORostelecom's (the Company) future operating and financial results as well as forecasts of the present value of future cash flows and

related factors;

• The Company's plans to take ownership stakes in other organisations;
• the Company's anticipated capital expenditures and plans to construct and modernize its network;
• the Company's expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
• the Company's plans with respect to improving its corporate governance practices;
• the Company's expectations as to its position in the telecommunications market and forecasts on the development of the market segments within which the Companyoperates;
• economic outlook and industrytrends;
• the Company's expectations as to the regulation of the Russian telecommunications industryand assessment of impact of regulatoryinitiatives on the Company's activity;
• other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other factors,which could cause actual results to differ materiallyfrom those expressed or implied bythese forward-looking statements. These risks, uncertainties and other factors include:

• risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;
• risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industryas well as currencyand exchange controls relating to Russian entities and their official interpretation by regulatorybodies;
• risks relating to the Company, including the achievement of the anticipated results, levels of profitabilityand growth, abilityto create and meet demand for the Company's services including their promotions, and the abilityof the Companyto remain competitive in a liberalized telecommunications market;
• technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies;
• other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company's Annual Report and the Company's other public filings.

Manyof these factors are beyond the Company's abilityto control or predict.Given these and other uncertainties, readers are cautioned not to place undue reliance on anyof the forward-looking statements contained herein or otherwise. The Companydoes not undertake anyobligation to release publiclyanyrevisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as maybe required under applicable laws.

ISIN: US7785291078 Category Code:MSCM TIDM: RKMD LEICode: 2534001D752JPNM0H170 Sequence No.: 6624 EQS News ID: 749489

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