MTX Connect started with an innovative idea: offering travellers an affordable, flat-rate solution for accessing the internet outside their home country. For Chief Operations Officer Artem Kirillov and the company co-founders, developing the technology was the first crucial step. Choosing the right location to launch the service was the next. “Telecoms is a highly regulated area, requiring a licence and a proper setup in terms of legislation and compliance,” Mr Kirillov points out.
They chose Luxembourg. “We quickly realised that the Luxembourg government was genuinely committed to fostering digital innovation,” he recalls. The company incorporated in 2013 and was granted a Mobile Virtual Network Operator licence. Two years later, the commercial service went live. Since then, the company has grown from its Luxembourg base to serve clients in over 170 countries.
We quickly realised that the Luxembourg government was genuinely committed to fostering digital innovation.
At the end of 2018, MTX Connect became the first provider in Luxembourg and Europe, and the third globally, to offer eSIM technology to its customers – a remarkable achievement by a small team from Luxembourg operating in an industry dominated by large, well-established companies.
Pivoting from B2C to B2B
However, MTX Connect soon had to face several changes impacting its operations. In 2017, the European Union introduced its “roam like at home” policy, enabling European citizens to use their mobile phones at domestic prices across the European Economic Area without incurring extra roaming charges. eSim-based services became a mass-market product, with fierce competition from low-cost providers. Finally, the COVID-19 pandemic brought travel to a near standstill in 2020, which impacted the company severely.
Faced with the pandemic, the MTX Connect team recognised the need to reevaluate and reinvent their business model. They decided to expand from retail-only services to a tailored solution for business needs, capitalising on their position as a regulated European service based in the secure Luxembourg jurisdiction.
Being part of the Luxembourg business community is a great advantage. We received a warm welcome when we arrived as expats, and once you are here, you soon get to know everybody.
“The use of cheap e-sim products introduces a number of vulnerabilities and insecurities, notably regarding data privacy,” explains Mr Kirillov. “For members of the public this is maybe not a big deal, but it definitely matters to business representatives and government officials travelling with sensitive data. They need to know that their traffic is handled by a trusted provider and routed through Luxembourg where any interception is illegal, except when ordered by law enforcement authorities and strictly according to applicable laws.”
He also mentions that European law requires clients to submit ID and contact details — a process that may seem cumbersome but adds a layer of security. It deters malicious actors and reassures clients that the provider operates within a regulated framework. This reliability is even more important as the company has expanded its offering to support internet of things and machine-to-machine applications.
Supporting ecosystem, seamless integration
MTX Connect started its journey at the premises of datacentre and dark fibre operator LuxConnect, where it was hosted for five years until it outgrew LuxConnect’s startup support programme. Mr Kirillov appreciates the support from Luxinnovation, the national innovation agency, and regularly participates in international trade missions organised by the Chamber of Commerce. “Being part of the Luxembourg business community is a great advantage. We received a warm welcome when we arrived as expats, and once you are here, you soon get to know everybody.”
He also points out the advantage of being located at the centre of European regulatory development. “Luxembourg has effectively represented our interests to the European institutions responsible for telecom regulation.”
In Luxembourg, data is protected not only by robust legislation but by values we firmly uphold.
The company now has a team of around 45 people, 10 of whom are based in Luxembourg. It has managed to hire top-level professionals, which is not a small feat in the telecoms field. “Most of our people working in Luxembourg are outstanding engineers who might never have heard of the country if it wasn’t for us,” Mr Kirillov smiles.
For him, settling in Luxembourg as an expat has been a smooth experience. “I want to give back for all the support I’ve received by integrating and actively contributing to my local community — and people appreciate that. My three children thrive in the Luxembourg school. The only drawback is the cost of living, but they just reflect that this place is very attractive, especially for people with families.”
Moving forward, MTX Connect aims to forge new partnerships in Luxembourg to drive cross-sector innovation. Mr Kirillov also wants to raise awareness within the business community about how mobile connectivity can expose users to AI-powered threats. “Some low-cost providers exploit metadata and possibly even user payloads for AI training to generate indirect revenue. In Luxembourg, data is protected not only by robust legislation but by values we firmly uphold.”