Russian telco Mobile TeleSystems (MTS) has announced that it has acquired a 100% stake in four separate fixed line companies operating under the ‘Altair’ brand in Tula, in the Central Federal District. Altair is the largest cable TV provider in Tula, with a 72% market share. Further, the company has 22% of the local broadband market and its 500km fibre-optic network covers more than 90% of the city’s households. The purchase price was RUB680 million (USD23.5 million); including the assumption of Altair’s net debt.
Dmitriy Rylov, director of MTS’ operations in the Central Federal District commented: ‘Today, the MTS Group provides fixed line services in over 120 cities in Russia. The acquisition of Altair allows MTS not only to enter into a new fixed line market, but also to increase its overall presence in the Central region. We see this as a promising market and are committed to strengthening our leadership position through further development and modernisation of the networks and offering our customers world-class services. The transaction is in line with MTS’ strategy aimed at building an integrated telecommunications operator’. Altair’s financial results will be consolidated in MTS’ financial statements from 22 August 2011.