MegaFon PJSC is a leading Russian universal telecommunication service provider, operating in all segments of the telecommunications markets in Russia. The Company and its subsidiaries have licenses to operate in all of the Russian regions and in the Republics of Abkhazia, South Ossetia and Tajikistan.

The Company was the first in Russia to launch 3G for commercial operations. In July 2012 MegaFon was awarded one of four ten-year licenses for the provision of 4G/LTE services throughout the entire Russian Federation and has already started providing these services in 50 different regions. In October 2013 MegaFon completed the acquisition of a 100% interest in Scartel/Yota, which hold significant 4G/LTE licenses, from Garsdale Services Investment Limited, its shareholder and a member of the AF Telecom group (see below).The Company is a leader in the provision of mobile Internet, and in the number two position as to the number of active subscribers in Russia.

As a result of its acquisition of the Synterra Group, one of the leading Russian backbone operators, in September 2010, MegaFon substantially increased its fixed-line B2B and B2G businesses, as well as its provision of fixed broadband services In September 2012 the Company acquired the VAS Media group of companies, which was integrated with MegaLabs, its R&D subsidiary.

In December 2012 the Company acquired a 25% interest in the Euroset retail chain, the largest chain in Russia providing telecommunications goods and services, and is committed to acquire a further 25% by December 2015.

In November 2012, MegaFon successfully completed an initial public offering on the Moscow Stock Exchange and the London Stock Exchange. MegaFon has two principal shareholders, companies in the USM Group (approximately 56.32%) and the TeliaSonera group (approximately 25.17%). Additional shares are held by a wholly owned subsidiary of the Company (3.92%, of which USM Holdings Limited has the right to acquire up to 2.5% prior to 2017), while the public float represents approximately 14.59% of the outstanding shares.

MegaFon was the Mobile General Partner of the XXII Winter Olympic Games and XI Paralympic Games held in Sochi in 2014. The state-of-the-art communication system installed by the Company for the Games contributed significantly to the participants’ enjoyment of the Games, and to the overall success of the Games.