Rostelecom to focus on fixed line and content

Russian service provider Rostelecom is likely to adopt a new strategy focused on its fixed line business, including wireline broadband and TV, and to seek a partner for its mobile activities, according to local reports.

Rostelecom president Sergey Kalugin told reporters on Friday that the fixed line business accounted for 90% of the group’s revenues and that it made sense to develop the mobile arm through a partnership.

Kalugin also said that Rostelecom could look to acquire media companies, including online content aggregators and producers. Through its National Cable Networks subsidiary, Rostelecom already owns a limited number of TV channels.

Rostelecom holds GSM and LTE wireless licences in a significant number of Russian regions. The operator has about 13.8 million mobile subscribers across the country, and has rolled out 3G services over the past year. Under the terms of its LTE licences, Rostelecom is obliged to roll out networks in five regions.

Rostelecom could reportedly be seeking a partnership with Tele2 for its mobile services, possibly via a joint venture.

Separately, Rostelecom is reportedly looking to invest US$26 million (€19 million) in building fibre-to-the-building networks in Armenia. The operator will build a GPON-based network via its GNC-Alfa subsidiary in 15 towns and cities across the country.