ROSTELECOM PJSC: 3GPP confirms compliance of Rostelecom 5G trials with 3GPP most advanced standards

3GPP confirms compliance of Rostelecom 5G trials 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.

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5G - is a new generation 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 5G network trial operations was as high as 25 Gbps. Such values raise the possibility to broadcast videos online in 4K and 8K Ultra HD resolution.

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PAO Rostelecom 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-TV markets in Russia with over 13.0 million fixed-line broadband subscribers and over 10.1 million pay-TV subscribers, over 5.1 million of which are subscribed to Rostelecom's IPTV services on the national level.

In the nine months of 2018, the Group generated RUB 233.0 billion of revenues, RUB 74.9 billion of OIBDA (32.1% of revenue) and RUB 12.7 billion of net income.

The Group 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, security and housing & utility services.

The Group's stable financial position confirmed by its credit ratings. Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.

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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 by the safe harbours created thereby.

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

• Assessment of PAO Rostelecom'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 Company operates;
• economic outlook and industry trends;
• the Company's expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives 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 materially from those expressed or implied by these 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 industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies;
• risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company's services including their promotions, and the ability of the Company to 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.

Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions 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 may be required under applicable laws.