Rostelecom eyes bright future; Svyazinvest mulls merger

11 Nov 2008

The state-backed Russian long-distance operator Rostelecom is predicting that its revenues will triple to more than RUB160 billion (USD5.98 billion) by 2013 as it expands into new lines of business. The company, which is controlled by national telecoms group Svyazinvest, expects operating income before depreciation and amortisation (OIBDA) to increase to RUB48.1 billion in 2013, from RUB11.1 billion last year, Reuters reports. Rostelecom is aiming to win 15% of the retail broadband market within five years as it expands on its core long-distance business, where it is seeing increasing competition. Apart from mergers and acquisitions, Rostelecom would seek to expand its geographical presence through network construction and is exploring other opportunities such as joint ventures and partnership schemes, Reuters says.

Meanwhile, Rostelecom shareholder Svyazinvest is considering a plan to merge its operating units into a single company. The deal would cover Rostelecom and Svyazinvest’s seven mega-regional telecoms operators: CenterTelecom, North-West Telecom, Southern Telecom, Volga Telecom, Uralsvyazinform, SibirTelecom and Dalsvyaz. Svyazinvest is expected to release more details of its future strategy by the end of next month, according to local press reports.

Russia, Rostelecom, Svyazinvest