Russian fixed broadband operator TransTeleCom (TTK) has failed to attract any bidders for its consumer division, ComNews reports. No applications were entered for an auction which had been scheduled for this week with a starting price of RUB8.9 billion (USD127 million) set by investment bank VTB Capital. A source close to TTK told ComNews, however, that ‘the company was not upset, since the mass market shows good results during the pandemic, and its strategy provides for both exit from retail and work in this segment.’ Originally focused on the inter-operator and corporate markets, TTK’s development strategy from 2011 onwards drove expansion in consumer markets, but with growth below initial expectations, the idea of selling B2C operations was included in a draft strategy in 2019.
Up for sale were two subsidiaries of TTK in which the group’s retail business is concentrated: 100% of TTK-Svyaz and 75.2% of Zap-SibTranstelecom. TTK itself is owned by state railway firm Russian Railways.