Rostelecom opts to liquidate Mobitel following ‘mega-regional’ merger; NVision acquisition delayed

23 Sep 2010

Russian telco Rostelecom has confirmed that it intends to liquidate telecommunications holding company Mobitel, in the wake of parent company Svyazinvest’s ongoing ‘mega-regional’ merger. According to reports in RBC Daily, Rostelecom believes that it already has sufficient resources for carrying out the management of its mobile business by itself; Mobitel currently manages the mobile operators that belong to Svyazinvest. According to TeleGeography’s GlobalComms Database, Svyazinvest originally announced plans to restructure its telecoms holdings in October 2009. The process will see Rostelecom combine its backbone network with those of seven ‘mega-regional’ local access operators, to create a national platform across which it hopes to become a leading mobile, fixed line and broadband operator. Svyazinvest hopes to generate USD1 billion through synergies, once the process is completed in April 2011.

In other news, according to reports in Kommersant, Rostelecom has not yet closed its December 2009 deal to acquire 25% of Russian IT integration specialists NVision Group. Rostelecom planned to pay approximately USD50 million for the stake, thus boosting its overall holding in the venture to 100%. Rostelecom intends to use NVision to build its own data centres. The delay has been blamed on unspecified legal matters.

Russia, Rostelecom, Svyazinvest