Comstar to begin re-branding with MTS (Russia)
Mobile TeleSystems (MTS) the Russian cellular group has announced the next phase of its incorporation programme with fixed line subsidiary Comstar UTS. The company confirmed that Comstar’s services in all regions will begin the re-branding this month.
MTS has also indicated that all units presently in service in the Comstar brand will be steadily transferred to the MTS brand by the end of 2011. If reports are to be believed, integrated call centres will be launched by Q1 2011.
Comstar has over 100 local subsidiaries nationally. In September 2010 MTS raised its stake in Comstar to 70.65%, following the acquisition of an additional 36,256,945 ordinary shares via a voluntary tender offer (VTO).
Rostelecom to acquire 25% of Svyazinvest (Russia)
www.WirelessFederation.com/news: Acquisition of 25% plus one share stake in the controlling stockholder, Svyazinvest, has been started by the giant Russian fixed line telephony provider, Rostelecom. Buying of stake in Svyazinvest from Moscow-based fixed line operator Comstar United TeleSystems has been agreed upon by Rostelecom with an investment of RUB26 billion (USD855 million).
51% of Rostelecom’s shares have been owned by a holding company for many national and large regional Russian telecoms assets, Svyazinvest. Federal Anti-Monopoly Service (FAS) has formally asked Rostelecom to approve the purchase; the state has endorsed the reorganization of Svyazinvest under the Rostelecom umbrella, to increase the holding company’s efficiency and reveal the true value of its assets.
Ratios for a planned stock swap between the subsidiary and eight regional fixed line operators have also been approved by the directors of Rostelecom last week.
Comstar to be branded as MTS by end- 2011 (Russia)
www.WirelessFederation.com/news: Re-branding of Comstar’s services to the MTS brand has been announced by Russian operators Comstar and MTS and the process is expected to be completed by the end of 2011.
Two brands namely MTS brand and the MGTS brand used by the Moscow fixed operator will be used going forward.
Comstar currently uses the Stream brand for its service and it will be transitioned to the name MTS Stream by the end of 2011.
Russian MTS looses USD 26.1 million in Q4
www.WirelessFederation.com/news: Net loss of USD 26.1 million for the fourth quarter has been reported by Russian and CIS mobile operator MTS because of one-time charges for its takeover of fixed-line operator Comstar-UTS.
The company made an investment of USD 368 million and another USD 86 million was taken for obsolete equipment and expenses related to the acquisition of Comstar and tax provisions. MTS finished 2009 with USD 2.5 billion in cash and its net debt increased to USD 5.59 billion. 10.1 percent decrease in the OIBDA going down to USD 1.19 billion has also been posted.
However, a rise in the subscriber base has been enjoyed which increased from 101.37 million in September 2009 to 102.36 million users at the end of the fourth quarter. For the future, the company has expressed its optimism regarding economic upturn predicting mid to high single-digit revenue growth in local currencies. Increased number of fixed and mobile subscribers accompanied by increased sale of handsets in its home market in Russia has been attributed as a reason behind the profitable future.
MTS to expand into cable TV market
www.WirelessFederation.com/news: MTS, a Russian mobile operator has shown interest in expanding into the cable TV market. According to the CEO of the company, Mikhail Shamolin the company may use the networks for the expansion of broadband services.
The areas of interest of the operator are the regional operators who cover cities with over 100,000 to 200,000 residents. It would also prove beneficial for expanding their fixed-line coverage at the recently acquired operator Comstar which now covers only major population centres.
Svyazinvest gets approval for stake sale (Russia)
www.WirelessFederation.com/news: According to a media report, Russia’s economy ministry has approved the government purchase of Sistema’s holdings in fixed line group Svyazinvest and mobile operator SkyLink. The state will take on Sistema’s RUB26 billion (USD827.7 million) debt to Siberbank in order to acquire the conglomerate’s 25% plus one share stake in Svyazinvest and its 50% stake in SkyLink. The deal will also see Sistema’s fixed line subsidiary, Comstar UTS, take on a 23% stake in Moscow City Telephone Network (MGTS), owner of the capital’s fixed line network, bringing its total stake in the operator to 94.9%.
Comstar to acquire Hellas On Line, Attica Telecom
Russian operator Comstar has agreed to acquire 51 percent in Greek ISP Hellas On Line from Intracom Holdings. The takeover will be conduced via a capital increase at Hellas On Line, paid for in cash by Comstar. The acquisition will follow Hellas On Line acquiring Greek rival Attica Telecommunications, announced by Attica’s shareholder Pantechniki. The price for the Attica takeover still depends on the outcome of due diligence. Shareholders of Attica will get thre right to particpate in further capital increases at Hellas On Line. The companies expect to finalise the deals in November, pending regulatory approval.
Source- http://www.telecompaper.com
