Megafon records 3.7% rise in revenues

www.WirelessFederation.com/news: An increase of 3.7 percent in the revenues has been announced by Russian mobile operator Megafon, earning RUB 181.9 billion for 2009. OIBDA went down to RUB 88.2 billion, decreasing 0.1 percent, and the OIBDA margin dropped to 48.5 percent from 50.5 percent in 2008.

2.2 percent increase in the net profit has also been reported generating RUB 45.3 billion. RUB 33.5 billion in free cash flow last year has been generated and with 4.7 percent increase, the CAPEX closed at RUB 52.5 billion. OIBDA dropped 2.0 percent over the same period to RUB 23.1 billion while the fourth-quarter revenues were up 1.9 percent from the third quarter of 2009 to RUB 48.4 billion and the OIBDA margin fell to 47.7 percent from 49.6.

The number of subscribers increased by 16.3 percent, year-on-year, to reach the total of 50.74 million at the end of 2009. The MOU of the company rose 3.6 percent to 285 while ARPU was down 3.1 percent from Q3 to RUB 316. For 2010, Megafon has declared that it will continue with the expansion of its retail network and 3G services.

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www.WirelessFederation.com/news: In a move to speed up expansion of broadband business, the USD710 million buyout of wireless broadband operator Synterra has been completed by Russian cellco MegaFon.

Federal Anti-monopoly Service (FAS) gave clearance to MegaFon at the end of July 2009 to buy 100% of Synterra’s shares. On February 25, 2010, cellco’s board met to approve the acquisition of the telco. According to Sergei Soldatenkov, MegaFon’s director general, Synterra is very important for the company for its backbone network and corporate clients.

Synterra operates the second largest backbone network in Russia and also owns a controlling stake in a number of wireline operators, such as St Petersburg-based PeterStar.

www.WirelessFederation.com/news: MTS, Vimpelcom and Megafon have been suspected of inflating tariffs by Russian antimonopoly watchdog FAS. An investigation has been launched by FAS into the high mobile roaming prices charged by the operators.

The roaming tariffs of the big three exceeded the level set by the European Commission by three to six times while the international calls tariffs applied by the operator is more than double.

The competition regulator has also found that the prices are well above those charged by smaller operators such as Tele2

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www.WirelessFederation.com/news: Telenor and the Alfa Group’s shareholders have been offered by the firm to consolidate their Ukraine and Russian mobile operations, four months after ending their bitter dispute over Vimpelcom.
Approval of the minority shareholders has been seeked by the companies on the long-delayed merger between Russian-based Vimpelcom and Ukraine operator Kyivstar.

The proposed merger was finally cleared by the Russian regulators last week which would create a $23 billion (€16.81 billion) company with around 88 million subscribers, and annual revenues of $12.6 billion. Through this deal, Russia’s third-largest carrier Megafon will be merged with Turkish carrier Turkcell in a 50:50 JV.

However, concerns are raised that the deal would leave Alfa in too dominant a position.

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www.WirelessFederation.com/news: Alfa Group may have to sell off some of its telecoms assets as desired by Russia’s Competition Regulator, to reduce its dominance in the home market. 25% of Megafon and 44% of VimpelCom is owned by Alfa Group.

The two companies have planned to settle their long-standing shareholder disputes with overseas investors. However, their decision has been criticized as the merged entities have to be registered outside Russia.

Megafon and Sweden’s TeliaSonera agreement to merge their shareholdings in Turkcell into a single holding company has been opposed by the Russian government who would prefer to create a larger Russian telecoms operator spanning both landline and mobile services.

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www.WirelessFederation.com/news: Alfa Group’s efforts to combine two of Russia’s biggest mobile operators VimpelCom and Megafon with peers in Ukraine and Turkey have been blocked by Russia’s competition watchdog, Igor Artemev.

According to the head of Russia’s Federal Anti-monopoly Service, the deals simultaneously would be undesirable and even unacceptable. Most of the shares of VimpelCom and Ukraine’s Kyivstar are owned by Alfa and Norwegian co-investor Telenor. Plans to combine the two companies were announced last September.

Alfa along with its Nordic partner TeliaSonera joined the forces several week later to try and merge Russia’s third-largest mobile firm Megafon with Turkey’s largest mobile company Turkcell.

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www.WirelessFederation.com/news: The state telecoms holding company Svyazinvest has shown its interest in buying mobile operator Megafon. Talks with Alisher Usmanov, owner of a 31.1 percent stake in Megafon are underway. The state is also interested in the blocking stake held by Alfa, part of Russian group Altimo.

Reorganization of Svyazinvest was approved by a government commission in May 2009. Since then, the purchase of a mobile operator to strengthen its operations is on the cards. Even AF Telecom Holding, managing Usmanov’s stake in Megafon, has expressed interest in cooperating with Svyazinvest. 31.1 percent stake in Megafon has been offered by the company in a joint venture created by Svyazinvest.

According to Russian minister of communications, Igor Shchegolev, the government would need to buy shares from Megafon’s other major shareholders, Altimo or TeliaSonera, but neither is willing to lower their stakes in Megafon. The Altimo and TeliaSonera deal needs approval by the Government Commission on Foreign Investments headed by the Prime Minister Vladimir Putin.

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MegaFon reveals 3G suppliers (Russia)

www.WirelessFederation.com/news: Russian mobile operator MegaFon, announced Finland-based equipment vendor Nokia Siemens Networks (NSN) as the winner of its tender for the right to supply and construct 3G networks for MegaFon. NSN is said to supply at least 60% of 3G node-B base stations for the operator’s upcoming network expansion.

Five firms, NSN, Huawei, Alcatel-Lucent, Ericsson and ZTE, would collaborate on the company’s 3G deployment and upgrades until 2010 end. Moreover, Huawei and NSN will provide MegaFon’s staff with full technical support for the supplied equipment. The cellco says it will decide the territory of the deployments within Russia and there will be no exclusive rights granted to vendors.

Russian mobile operator MegaFon, announced Finland-based equipment vendor Nokia Siemens Networks (NSN) as the winner of its tender for the right to supply and construct 3G networks for MegaFon. NSN is said to supply at least 60% of 3G node-B base stations for the operator’s upcoming network expansion.
Five firms, NSN, Huawei, Alcatel-Lucent, Ericsson and ZTE, would collaborate on the company’s 3G deployment and upgrades until 2010 end. Morover, Huawei and NSN will provide MegaFon’s staff with full technical support for the supplied equipment. The cellco says it will decide the territory of the deployments within Russia and there will be no exclusive rights granted to vendors.

www.WirelessFederation.com/news: BASE, the Belgian mobile operator has reportedly announced its plans to launch 3G HSPA technology by 2009-end. The operator initially is offering data services using an Edge network, and plans to gradually roll out the next-generation technology across its national network. The operator intends to offer the 3G services with devices such as netbooks and e-readers, saying it will offer “extremely attractive” prices competitive with fixed broadband services.

www.WirelessFederation.com/news: Rwandatel has inked a roaming agreement with Belgian telecoms company Belgacom, which will enable Rwandatel’s postpaid subscribers to have acces to  voice and SMS services on any roaming network affiliated to Belgacom. Rwandatel’s postpaid subscribers will now be able to access roaming services with nearly 500 operators across the globe. ‘This is a key differentiator for Rwandatel in meeting the requirements of the post-paid subscribers,’ said Patrick Kariningufu, CEO of the Rwandan cellco, adding, ‘In an increasingly intricate and competitive retail market, we acknowledge the importance of partnering with an established recognised leader in international mobile services.’