Comstar invests in MGTS fixed line modernisation

8 Oct 2010

Russian integrated telecoms provider Comstar has announced that its majority owned subsidiary Moscow City Telephone Network (MGTS) will invest RUB13 billion (USD436.5 million) on upgrades to its fixed line network between now and 2013; approximately RUB2 billion will be spent during Q4 2010. 63% of MGTS’ network was digitalised by the beginning of 2010, and the percentage is expected to increase to 68.8% by the end of year. Following the completion of the modernisation process, MGTS’ network will be fully digitalised by 2013. The digitalisation will allow MGTS to decrease its maintenance costs for analogue exchanges, modernise its business processes, optimise staffing levels and increase the company’s overall efficiency.

Sergey Ivanov, CEO of MGTS, commented: ‘By investing in technology, we also invest in our customers. Digital solutions will allow us to offer our Moscow residents the latest telecom services, including voice calls, broadband Internet access, and text and image messaging services, and the high tech equipment is expected to lower the cost of our multi-service offerings, and will demand lower levels of resources than current analogue exchanges.’