Russia Wants To Merge Svyazinvest's Regional Mobile Operators
June 23 2009 - 12:30PM
Dow Jones News
The Russian government wants to form a fourth national mobile
telecoms operator by combining the different regional cellular
operators that it controls, the country's communications minister
said Tuesday.
The government is working on plans to restructure the country's
state telecommunications holding, OAO Svyazinvest.
"The practical goal for Svyazinvest is to become one of the top
four (mobile) operators on the market," Communications Minister
Igor Shchegolev told businessmen in a speech on Tuesday.
Svyazinvest controls seven publicly-traded companies which
operate the fixed-line infastructure in each of Russia's regions.
These companies also run more profitable mobile networks and the
government wants to strengthen these businesses, which serve around
a tenth of Russia's mobile subscribers but are managed
separately.
"The mobile sector is the biggest on the Russian market...and
Svyazinvest is particularly weak in the sector," said
Shchegolev.
The minister added that the merged mobile businesses of
Svyazinvest could then be combined with one of Russia's three
existing national operators OAO Mobile TeleSystems (MBT), OAO
Vimpel Communications (VIP) or OAO Megafon.
But the minister said that Svyazinvest's executives were
responsible for any discussions with the operators, and said he
didn't know if they were interested in the idea.
Ministry Web site: www.minsvyaz.ru
-By Will Bland, Dow Jones Newswires; +7 495 937 8445;
william.bland@dowjones.com