14. OTHER INTANGIBLE ASSETS
Net book value of other intangible assets as at December 31, 2017, December 31, 2016 and January 1, 2016 was as follows:
|
|
|
Licenses |
|
Right to |
|
Billing and |
|
Client base |
|
Numbering |
|
Other |
|
Total |
|
|||||||
|
Useful life, years |
|
|
1 to 20 |
|
|
1 to 15 |
|
|
1 to 25 |
|
|
4 to 31 |
|
|
2 to 15 |
|
|
1 to 10 |
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2016 |
|
|
28,490 |
|
|
9,326 |
|
|
93,134 |
|
|
7,537 |
|
|
3,208 |
|
|
9,767 |
|
|
151,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
|
|
3,382 |
|
|
245 |
|
|
27,658 |
|
|
— |
|
|
65 |
|
|
232 |
|
|
31,582 |
|
|
Arising on business combinations (Note 4) |
|
|
323 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
323 |
|
|
Disposal of UMS |
|
|
— |
|
|
— |
|
|
(1,891 |
) |
|
— |
|
|
— |
|
|
(3,687 |
) |
|
(5,578 |
) |
|
Disposal |
|
|
(2 |
) |
|
(582 |
) |
|
(10,509 |
) |
|
(164 |
) |
|
(160 |
) |
|
(2,842 |
) |
|
(14,259 |
) |
|
Other |
|
|
44 |
|
|
(40 |
) |
|
(87 |
) |
|
— |
|
|
(4 |
) |
|
(40 |
) |
|
(127 |
) |
|
Foreign exchange differences |
|
|
(5,101 |
) |
|
— |
|
|
(3,763 |
) |
|
— |
|
|
(39 |
) |
|
(1,187 |
) |
|
(10,090 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
27,136 |
|
|
8,949 |
|
|
104,542 |
|
|
7,373 |
|
|
3,070 |
|
|
2,243 |
|
|
153,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions |
|
|
1,647 |
|
|
13 |
|
|
24,686 |
|
|
— |
|
|
12 |
|
|
219 |
|
|
26,577 |
|
|
Arising on business combinations (Note 4) |
|
|
260 |
|
|
— |
|
|
163 |
|
|
— |
|
|
— |
|
|
150 |
|
|
573 |
|
|
Disposal |
|
|
(93 |
) |
|
(1,112 |
) |
|
(8,429 |
) |
|
(50 |
) |
|
(158 |
) |
|
(166 |
) |
|
(10,008 |
) |
|
Other |
|
|
(2 |
) |
|
1 |
|
|
(6 |
) |
|
— |
|
|
— |
|
|
57 |
|
|
50 |
|
|
Foreign exchange differences |
|
|
(1,207 |
) |
|
— |
|
|
(980 |
) |
|
— |
|
|
(9 |
) |
|
(23 |
) |
|
(2,219 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
|
27,741 |
|
|
7,851 |
|
|
119,976 |
|
|
7,323 |
|
|
2,915 |
|
|
2,480 |
|
|
168,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortisation and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2016 |
|
|
(9,873 |
) |
|
(4,261 |
) |
|
(50,557 |
) |
|
(3,619 |
) |
|
(2,996 |
) |
|
(5,560 |
) |
|
(76,866 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year |
|
|
(2,092 |
) |
|
(1,170 |
) |
|
(18,002 |
) |
|
(620 |
) |
|
(46 |
) |
|
(1,389 |
) |
|
(23,319 |
) |
|
Disposal of UMS |
|
|
— |
|
|
— |
|
|
494 |
|
|
— |
|
|
— |
|
|
2,162 |
|
|
2,656 |
|
|
Disposal |
|
|
2 |
|
|
582 |
|
|
10,193 |
|
|
164 |
|
|
160 |
|
|
2,836 |
|
|
13,937 |
|
|
Other |
|
|
(7 |
) |
|
20 |
|
|
43 |
|
|
— |
|
|
(13 |
) |
|
(42 |
) |
|
1 |
|
|
Foreign exchange differences |
|
|
2,007 |
|
|
— |
|
|
2,697 |
|
|
— |
|
|
34 |
|
|
668 |
|
|
5,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
(9,963 |
) |
|
(4,829 |
) |
|
(55,132 |
) |
|
(4,075 |
) |
|
(2,861 |
) |
|
(1,325 |
) |
|
(78,185 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year |
|
|
(2,180 |
) |
|
(1,042 |
) |
|
(17,614 |
) |
|
(616 |
) |
|
(57 |
) |
|
(224 |
) |
|
(21,733 |
) |
|
Effect on assets impairment |
|
|
— |
|
|
— |
|
|
(148 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(148 |
) |
|
Disposal |
|
|
92 |
|
|
1,108 |
|
|
8,345 |
|
|
50 |
|
|
158 |
|
|
157 |
|
|
9,910 |
|
|
Other |
|
|
— |
|
|
2 |
|
|
(17 |
) |
|
— |
|
|
(4 |
) |
|
(31 |
) |
|
(50 |
) |
|
Foreign exchange differences |
|
|
570 |
|
|
— |
|
|
726 |
|
|
— |
|
|
8 |
|
|
13 |
|
|
1,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
|
(11,481 |
) |
|
(4,761 |
) |
|
(63,840 |
) |
|
(4,641 |
) |
|
(2,756 |
) |
|
(1,410 |
) |
|
(88,889 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2016 |
|
|
18,617 |
|
|
5,065 |
|
|
42,577 |
|
|
3,918 |
|
|
212 |
|
|
4,207 |
|
|
74,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
|
17,173 |
|
|
4,120 |
|
|
49,410 |
|
|
3,298 |
|
|
209 |
|
|
918 |
|
|
75,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
|
16,260 |
|
|
3,090 |
|
|
56,136 |
|
|
2,682 |
|
|
159 |
|
|
1,070 |
|
|
79,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge of amortization for 2015 year for Licenses, Right to use radio frequencies, Billing and other software, Client base, Numbering capacity and Other was RUB 1,447 million, RUB 1,202 million, RUB 16,933 million, RUB 692 million, RUB 147 million and RUB 3,770 million, respectively.
In connection with providing telecommunication services, the Group has been issued various GSM operating licenses by the Russian Ministry of Information Technologies and Communications. In addition to the licenses received directly from the Russian Ministry of Information Technologies and Communications, the Group has been granted access to various telecommunication licenses through acquisitions. In foreign subsidiaries, the licenses are granted by the local communication authorities.
Operating licenses contain a number conditions specified by legislation which generally include the required date of services provision, territorial coverage and expiration date. Management believes that the Group is in compliance with all material terms of its licenses.
The Group's operating licenses do not provide for automatic renewal. All licenses covering the territories of the Russian Federation expired as of December 31, 2017 were renewed. The cost to renew the licenses was not significant. Weighted-average period until the next renewal of licenses in the Russian Federation is five years.
The license for the provision of telecommunication services in Ukraine was renewed in 2013 and is valid until 2026. The license for the provision of telecommunication services in Armenia is valid until 2019.
Contractual obligations to purchase intangible assets are disclosed in the Note 30.