Rostelecom announces Chita-on-Line acquisition

6 Aug 2012

Russian national telecoms operator Rostelecom has announced that it has signed an agreement to acquire a 100% stake in Chita-on-Line, a prominent alternative operator in the eastern region of Chita. As part of the deal, AMT and Westelecom, a pair of wholly-owned Rostelecom subsidiaries will acquire 100% of the equity in Chita-on-Line from various private investors. The deal has been valued at around RUB140 million (USD4.4 million), and part of the payment will be deferred. Chita-on-Line provides fibre-to-the-building (FTTB) and Ethernet-to-the-home (ETTH) broadband access and pay-TV services, along with other telecoms services. The company operates its own 228.8km optical network, covering the entire area of the city of Chita. The city is located at the confluence of the Chitinka and Ingoda Rivers also has a presence on the Trans-Siberian Railway line. Chita-on-Line also has minor network intersections with Rostelecom’s existing branch in Chita. According to Rostelecom, the operator has a local broadband market share of approximately 11% and claims around 10% of the city’s pay-TV subscribers.

Russia, Rostelecom