MegaFon confirms Synterra integration strategy; North West operations first in line

30 Nov 2010

Russian cellco MegaFon has announced details of its imminent integration with fixed line operator Synterra, which it purchased in March 2010. The first stage of the integration will take place in the North-West Federal District, where MegaFon’s existing operations are set to absorb Synterra’s PeterStar unit. Next in line for integration are regional units in the Urals, Siberia and the South. MegaFon has pointed out that the ongoing integration process is unique in as much as Synterra and MegaFon’s existing markets rarely overlap, meaning the newly integrated portfolio will be able to make use of the infrastructure and spectrum belonging to both operators. Consequently, the integrated company will boast a backbone network that is over 100,000 km long, in addition to extensive satellite infrastructure.

Konstantin Solodukhin, deputy CEO of MegaFon’s long distance communications department commented: ‘While working on the business model, we have identified our long-term goals, not just for integration process. We have also defined the future for the entire integrated company: in two years we must become a universal telecommunications operator. Acquisition of the Synterra Group is the first and strategically essential step towards this major goal. Our integration will give us an opportunity to create a universal operator for providing a wide range of telecommunication services to any kind of customers. Today we are not discussing mergers and acquisitions. Today we are discussing integration because changes are needed both for Synterra and for MegaFon as well’.

Russia, MegaFon, PeterStar, Synterra