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Rostelecom to form mobile joint venture with Tele2 Russia
2013-12-12 20:11:00| Telecompaper Headlines
(Telecompaper) Russian national operator Rostelecom has agreed to merge its mobile activities with the mobile operator Tele2 Russia, owned by Russian bank VTB and a group of local investors. The merger of the fourth and fifth largest mobile operators will create a company with almost 38 million customers and over RUN 100 billion in annual revenues. The joint venture T2 RTK Holding created from the merger will have an estimated market share of 16 percent, leaving it in fourth place behind the big three operators in Russia. The deal gives Tele2 a nationwide network footprint and access to key spectrum to launch LTE services. The transfer of Rostelecom's assets to the new company will be carried out in two stages. All subsidiaries providing mobile services, including Sky Link, will be transferred to the joint venture by the end of Q1 2014, giving Rostelecom a 26 percent stake and 45 percent of voting rights in the joint venture. During the second stage, Rostelecom will spin off its remaining mobile businesses into a new wholly owned subsidiary called RT-Mobile, which will take over its spectrum licences. Upon completion of the spin-off, Rostelecom will contribute RT-Mobile to T2 RTK Holding and increase its economic interest in the joint venture to 45 percent. The merger remains subject to regulatory and shareholder approval, and both stages should be completed by mid-2014.
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Category:Telecommunications