TTK plots AKADO swoop; plans to extend coverage to 260 cities

20 May 2013

Russian fixed line operator TransTeleCom (TTK), which is controlled by state-run Russian Railways, is said to be considering the acquisition of Moscow-based internet service provider (ISP) AKADO Telecom. Citing a company spokesman, the Prime Business news agency reports that ‘unofficial talks’ have taken place between the two parties, with both sides thought to be keen on a deal.

According to TeleGeography’s GlobalComms Database, AKADO Telecom is majority owned by US-based firm Moscow CableCom Corp (MOCC) which has itself been wholly owned by Russian private equity investor Renova Media Enterprises since July 2007. Renova holds a 67% stake in the business, while the telco’s chairman Yuriy Pripachkin is thought to hold the remaining 33%. In 2010/11 both Rostelecom and MegaFon lined up deals for AKADO, only to falter as negotiations progressed.

In other news, TTK, which started providing commercial broadband services in 2011, plans to cover up to 260 cities by the end of 2013, boosting its subscriber base to 1.5 million. The telco currently accounts for 1.3 million users in 180 cities. Going forward, TTK also plans to launch a mobile WiMAX network in selected towns later this year. Vice president Svetlana Shamzon claims that the construction of fixed line infrastructure in certain locations is ‘economically inefficient’.

Russia, AKADO Telecom, TransTeleCom (TTK)