Izvestia: “Three operators, one network”
An integral company will expand fourth-generation (4G) communications networks in Russia. The biggest three mobile operators, Rostelekom and Russian Technologies have signed an agreement to purchase the Yota Group in the presence of Prime Minister Vladimir Putin.
"Why did you turn him upside down?" Putin asked, after entering the Skartel Company offices. Skartel is a subsidiary of Yota Holding.
The two-meter tall human figure of blue colour standing upside down was drawn on a staircase wall.
"This symbolises our approach to work. We find new ways to do things," the company's Director General Denis Sverdlov explained.
Putin seemed to like the explanation because he was there to completely rearrange the traditional approach of telecommunications companies' development processes, when every company builds its own, independent networks.
Vympelkom, MTS, Rostelekom, Russian Technologies and Megafon have decided to jointly expand the 4G network based on Yota infrastructure. Minister of Communications and Mass Media Igor Shchyogolev said creating new networks was becoming more expensive for companies. Clients have grown accustomed to the fact that new services become affordable in no time, and they want them as cheap as possible. Companies are no longer able to do this independently. In an effort to stay afloat, they need to modify their approach. Sergei Chemezov, CEO of Russian Technologies which owns a 25% stake in Skartel, aptly remarked that the main task is to create a nationwide network as soon as possible.
"This suggests a new approach towards infrastructure development. We expect that an interesting business model will be created, and that this model will make Russia a global leader in terms of mobile content penetration and new technologies," Shchyogolev explained.
The minister said each party will receive a 20% stake in the new joint venture. Consequently, corporate network-construction expenses will be drastically reduced, and the companies will be able to invest more in network expansion projects while reducing operational costs.
Putin called the decision positive and said it promotes development.
"The whole world wants a modern communications networks, and Russia is no exception. More affordable prices provide additional opportunities for end users. I hope very much that this concept will be implemented," Putin said. He also inquired about anti-monopoly legislation.
"These companies will vie with each other in terms of better service quality, rather than faster infrastructure construction," Shchyogolev noted. Building this network in small towns will facilitate prompt service for residents, and any technologies can be used by schools and libraries.
Clarifying Thursday's transaction, the agreement includes two important aspects. Firstly, the major operators can begin using 4G networks owned by Yota now. The other is that they will be able to buy into this company in 2014.
Anastasia Savinykh
