Rostelecom expands to Vladivostok by buying Alliance Telecom

Rostelecom expands to Vladivostok by buying Alliance Telecom

06 August 2019 | Alan Burkitt-Gray

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Russian operator Rostelecom has bought 100% control of Alliance Telecom, which offers internet and TV services in Vladivostok and other eastern cities.

Alliance Telecom’s turnover amounted to over 900 million roubles ($12.3 million) in 2018, but Rostelecom has not revealed the purchase price.

It has bought Alliance Telecom through its subsidiary Bashinformsvyaz, also known as Bashtel, giving it a 100% stake in three companies to secure full control over the Alliance Telecom.

Alliance Telecom has been providing Internet access and TV services across the Primorsky region since 2007, servicing individual clients and business in the cities of Vladivostok, Ussuriysk, Nakhodka and Artyom.

“The acquisition will strengthen Rostelecom’s position in the broadband internet market in the Primorsky region,” said Anna Shumeyko (pictured), senior vice president and chief of staff.

The household segment accounts for 80% of Alliance Telecom’s revenue The operator claims to be “an undisputable leader in Vladivostok and one of the leading providers in the Primorsky region overall with a subscriber base of 110,000 families”.

The company also has more than 6,000 business clients.

Shumeyko said: “We are seeing a lot of opportunities to realise the synergy effects from operational cost optimisation as well as from upselling the Alliance Telecom subscriber base with an expanded set of services, currently available to Rostelecom’s clients.”

Rostelecom said the deal is in line with its strategic priority to develop its digital ecosystem and client services offering. 

Last year Capacity reported Rostelecom plans to upgrade its transcontinental Transit Europe-Asia (TEA) Cable System linking Europe with China and Japan.