Southern Telecommunications acquires 99.9% stake in South Telecom

30 Sep 2010

Southern Telecommunications (UTK), which is made up of ten regional telecoms operators (RTOs) in the Southern Federal District has received approval from Russia’s Federal Antimonopoly Service (FAS) to acquire a 99.9% stake in South Telecom, a regional operator which provides fixed line telephony and broadband services in the Krasnodar region, under the Ugtel brand. Long-distance telecoms provider Arktel bought South Telecom for RUB104.8 million (USD3.44 million) in 2006. In other news, Southern Telecommunications has also been cleared to merge with Stavtelecom, which claims to be the second largest provider of telecommunications services in the Stavropol region. Southern Telecommunications, which is itself owned by Russian telecommunications holding company Svyazinvest, is poised to be incorporated with Rostelecom in 2011, as part of its parent company’s ‘mega-regional merger’.

Russia, Southern Telecommunications (UTK)