TransTeleCom enters new markets

29 May 2008

Russian operator TransTeleCom (TTC), owned by the state railway monopoly RZhD, has announced it will enter the mass market for local fixed line, long-distance and international phone calls as well as offering broadband internet access. Rostelecom lost its monopoly on domestic long-distance (DLD) and international phone calls in 2006 and several other companies have received DLD licences since then. TTC currently leases its network to other operators and provides high speed internet services. The company’s 53,000km backbone digital fibre-optic network connects 71 of Russia’s 88 regions, which accounts for almost 90% of the population.

Andrei Semin-Vadov, TTC senior vice-president said ‘We are in for an eight-year marathon, but unlike a normal marathon it has to be at a sprinter’s speed. The speed of building a network is crucial’. TTC President Sergei Lipatov said the company also planned acquisitions of regional telecoms operators and plans to spend more than RUB40 billion (USD1.7 billion) on new and existing networks in 120 Russian towns from 2008 to 2015. The company hopes to connect more than two million retail customers in eight years, and plans to double revenues to over USD2 billion and gain up to 17% of the regional retail fixed line market by 2015.

Russia, TransTeleCom (TTK)