NetByNet, the broadband subsidiary of Russian mobile giant Megafon, has acquired Moscow-based fixed services provider Express TeleCom, giving the parent group vital access to the capital’s corporate business user market and allowing it to keep pace with its ‘big three’ telecoms rivals. ComNews quotes NetByNet chief executive officer Andrew Batanova as saying that the acquisition gives his company access to Express TeleCom’s ‘well-developed infrastructure’ allowing NetByNet to expand its presence into the capital’s corporate services market for fixed telecoms. The value of the transaction has not been disclosed but the smaller firm is estimated to be worth between RUB220 million and RUB250 million (USD4.8 million- USD5.5 million) before the deduction of debt. At 30 June 2014 Express TeleCom had more than 1,200 corporate customers.
TeleGeography notes that MegaFon is continuing to pursue a policy of local mergers and acquisitions. In July this year it completed the takeovers of three regional internet service providers (ISPs). The trio of companies in question are Cheboksary-based ChebNet, Tver-based Ratmir Telecom and Lobnya-based LNT. The three companies account for a consolidated subscriber base of 86,000 at the time of the takeover.