VolgaTelecom to Complete Mobile Units' Merger in 2007

MOSCOW, June 20 (Prime-Tass) -- Russia's regional telecommunications operator VolgaTelecom plans to complete the consolidation of its mobile units in April-June 2007, Mikhail Petrov, the company's deputy general director for mobile communications, told a conference call Tuesday.

The company's current aim is to increase its stakes in mobile subsidiaries to 100%, Petrov said, adding that the company did not plan to buy any other operators.

The consolidated subscriber base of VolgaTelecom's mobile units rose 10.6% in January-March to 2.008 million as of April 1, Petrov also said. The monthly average revenue per user (ARPU) fell to U.S. $6.3 in 2005 from $7.2 in 2004, he said, adding that the ARPU is expected to remain flat in 2006.

VolgaTelecom has stakes in eight mobile operators, namely, 100% in NSS, or Nizhny Novgorod Cellular Communications; 100% in Mordovia?s RTKOM; 60% in Ulyanovsk GSM; 51% in Orenburg GSM; 50% plus one share in Tatincom-T, based in Tatarstan; 50% in Saratov Mobile; 40% in Penza Mobile; and 30% in Chuvashia Mobile. In the constituent republic of Mari El, VolgaTelecom provides mobile services through its branch in the republic.

NSS is expected to become the direct holder VolgaTelecom's mobile subsidiaries.

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Posted to the site on 20th June 2006