MTS, Comstar transfer Multiregion assets to Comstar-Regions group

8 Oct 2010

Russian telco Comstar-UTS has received permission from Russia’s Federal Antimonopoly Service (FAS) to transfer the assets of cable operator MultiRegion to its Comstar-Regions group. Multiregion, which was acquired by Comstar’s parent company Mobile TeleSystems (MTS) for a fee of USD123.5 million in July 2010, is a group of broadband and cable TV providers with presence in 37 cities of the Russian Federation. The company currently covers around 1.8 million households, of which 1.3 million are FTTB-based. At the time of the transaction, Multiregion claimed to have approximately 700,000 cable TV subscribers and 260,000 broadband subscribers. According to RBD Daily, the impending asset transfer should help Comstar-UTS secure an additional USD40 million in revenue next year. As reported in CommsUpdate earlier this week, MTS has announced the next phase of its integration programme with Comstar, confirming that, starting this month, Comstar’s services will be gradually transferred to the MTS brand by the end of 2011.

Russia, Comstar United TeleSystems (Comstar UTS), Mobile TeleSystems (MTS)