By Olga Razumovskaya
MOSCOW--Russian state-controlled telecommunications company
Rostelecom (RTKM.RS) hopes to strike a deal to merge its mobile
assets with that of Tele2 Russia soon, Rostelecom's chief
executive, Sergei Kalugin, said Wednesday.
"Rostelecom has objective reasons to want to complete this deal
[by year-end]," Mr. Kalugin said at a news conference.
The mobile virtual network operator deal will allow Rostelecom
to boost its mobile segment, which currently brings 13% of the
company's revenue and become a viable fourth mobile player in
Russia.
Rostelecom will be able to use Tele2's vast network
infrastructure to become the fourth largest player on the Russian
mobile market, the company said.
Russia's second-largest lender VTB Bank (VTBR.RS) purchased the
mobile operator in April from its Swedish parent, Tele2 AB
(TELE2-B.SK) for $3.55 billion, and agreed to sell it in October to
companies affiliated with private lender Bank Rossiya.
Mr. Kalugin was talking to reporters as the company reported a
12% rise in profit in the third quarter of 2013.
Following the long-awaited merger with telecoms company
Svyazinvest which was completed in October, Rostelecom said the
full-year 2013 revenue of the reorganized company will grow
insignificantly and the revenue of Rostelecom alone for 2013 will
stay flat on the year.
The company said it expects only marginal revenue growth in
2013.
Write to Olga Razumovskaya at Olga.Razumovskaya@wsj.com
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