MegaFon adds to its frequency portfolio in the Volga Region

Moscow, Russian Federation (01 March 2017) — Public Joint Stock Company “MegaFon” (LSE: MFON), a leading Russian telecommunications operator (“MegaFon” or the “Company”), announces the completion of the acquisition (the “Acquisition”) of a 100% interest in JSC “SMARTS-Ulyanovsk”, a 100% interest in JSC “SMARTS-Saransk” and a 100% interest in JSC “SMARTS-Penza” (the “Companies”) from the regional mobile operator JSC “SMARTS”.

Each of the Companies owns 14.8 MHz of spectrum in the 1800 MHz band. The Acquisition of the Companies will strengthen MegaFon’s position in the 1,800 MHz spectrum band in the Republic of Mordovia and the Ulyanovsk and Penza regions of Russia.

Mr. Sergey Soldatenkov, CEO of MegaFon, commented:

“This Acquisition will provide for more efficient, fast and cost-effective LTE 1800 development, in particular due to limited opportunities in the re-farming of the 1800 MHz frequencies for LTE networks. In addition to a number of long-term strategic benefits, this purchase will also improve our portfolio of frequencies in 1,800 MHz spectrum band in the Volga Region and provide for an improved coverage and service quality”.