Support The Moscow Times!

Rostelecom Approves Merger of Mobile Business with Tele2

State-controlled telecoms group Rostelecom said Thursday that its board had approved a plan to merge its mobile business into rival Tele2 Russia.

The deal, under consideration for several months, will create a stronger rival to compete with the big three wireless carriers — MTS, MegaFon and VimpelCom — which currently control more than 80 percent of the country's mobile market.

A former landline monopoly, Rostelecom was reorganized several years ago in an attempt to win a bigger share of fast-growing markets such as mobile, broadband, pay-television and information technology.

Rostelecom said Thursday that it would get a 45 percent voting stake in the new company, T2 RTK Holding, in exchange for its mobile assets and licences. Tele2 Russia, owned by state-controlled bank VTB and Russian businessmen Yuriy Kovalchuk and Alexei Mordashov, will have 55 percent.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.