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Rostelecom acquires 100-percent control of Volgograd-GSM

Rostelecom gained full control over the regional GSM mobile services provider

MOSCOW, September 1 (Itar-Tass) — Russia’s national telecommunications operator Rostelecom has paid 2.322 billion roubles to buy 50 percent of ordinary shares in Volgograd-GSM mobile services provider from SMARTS Group, Rostelecom’s pres service said on Thursday.

Thus, Rostelecom gained full control over the regional GSM mobile services provider.

Volgograd-GSM provides mobiles services in all 33 districts of the Volgograd region, southern Russia, which has the population of 2.6 million people.

At the end of the first quarter of 2011 the number of Volgograd-GSM mobile services’ users reached 855,000. At the end of 2010 the company’s market share reached around 20 percent.

Rostelecom President Alexander Provotorov noted that “after Rostelecom increases its stake in Volgograd-GSM to 100 percent, the company gets full control over the operator.”

“This will allow to develop mobile communication services in the Volgograd region more actively and integrate the operator with Rostelecom’s other cellular assets and will help to consolidate the financial and operating data of Volgograd-GSM in Rostelecom’s reporting,” he said.

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