Svyazinvest Planning to Merge Russian Mobile Networks

Published on: 1st Jan 1970: 1:33am

Russia's Communications and Press Minister Igor Shchyogolev has confirmed that Svyazinvest is planning to merge its separate mobile network operator subsidiaries into a single company. The move is expected to make it easier for the state-controlled company to compete with the three main private networks who dominate the market.

It would be "optimal" to merge Svyazinvest's mobile operators with one of the "Big Three," Shchyogolev said, referring to MTS, VimpelCom and MegaFon. A final decision on the model for the new provider will be made in the fall, he said, Interfax has reported.

Svyazinvest is a holding company that manages various landline networks and owns thirteen mobile regional networks, although none of them have a license covering the lucrative Moscow region.

Svyazinvest is 75 percent minus one share owned by the government. The remainder is held by landline operator, Comstar which is owned by Sistema - which itself owns 52.8% of rival mobile operator, MTS.

Based on figures from the Mobile World, the merged networks would have a market share of around 9%, compared to MTS (34%), VimpelCom (25.9%) and MegaFon (22.8%).

On the web: Mobile World

 

Tags: [svyazinvest]  [mts]  [vimpelcom]  [megafon]  [comstar]  [sistema]  [planning]