Capital Investment

In December 2018, the Board of Directors approved the Company’s budget for  2019Approved by the Board of Directors on 10 December 2018; dated 10 December 2018, Minutes No. 13., including the Capital Investment ProgrammeInformation on major projects within the Capital Investment Programme for 2018–2019 is available in Appendix 9 Additional Information on PJSC Rostelecom to this Annual Report..

Capital investment areas 2017 2018 2019F Major projects
Scaling (Expansion of the existing business), % 72 65 55 Construction of networks for residential and business customers, installations and CPE, last mile and IP/MPLS network projects
Efficiency improvement projects, % 17 20 22 IT development and deployments, IT hardware replacements, transition from copper to fibre, real estate portfolio optimisation
New products, % 10 15 22 Data centres and cloud services, industry-specific services, e-services for state agencies, cyber security solutions
Actual/planned capital investment (CAPEX) excluding government-sponsored programmes, RUB million (according to the cash flow statement) 57,322 55,855 58,993

Major capital investment projects in 2018

  • Expanded IP/MPLS data network
  • Completed hardware and software upgrades of IPTV/ОТТ platform
  • Expanded the Transit Europe–Asia high-speed backbone cable system
  • Carried video coverage of the 2018 Russian presidential election
  • Deployed and upgraded automated CRM systems for B2B and B2C segments
  • Upsized network operations centres
  • Developed the Smart Transit Shelter project
  • Built data centre physical infrastructure at the Kalininskaya NPP
  • Launched back-up data centre infrastructure services for the e-government infrastructure
  • Carried out a comprehensive upgrade of Moscow’s video surveillance system
CAPEX: focus on new streams and efficiency, 2017–2018, %