PRESS: Rostelecom may become govt’s only fixed-line provider soon

MOSCOW, Sep 7 (PRIME) -- Russian state-controlled telecom operator Rostelecom may become the only supplier of almost all types of connection services, except for mobile, for state entities from 2018, business daily Vedomosti reported on Thursday, citing several sources familiar with the corresponding decree of President Vladimir Putin.

A source in an operator said that Rostelecom would provide fixed-line and Internet access services, while various mobile operators would continue to render mobile connection services.

A spokesperson for Rostelecom told the daily that the operator does not have information on the decree. No official comments from authorities were provided either.

Researcher TMT Consulting estimated the market of fixed-line services for state customers at 37 billion rubles with Rostelecom’s share at 59%. The researcher’s General Director Konstantin Ankilov said that operators earn more than 37 billion rubles, because they often provide comprehensive solutions with IT services.

Rostelecom shares the fixed-line market for state entities with such companies as mobile giants MTS, MegaFon, and VimpelCom, wireline operator TransTeleCom (TTK), and regional providers.

In 2016, corporate and state customers brought Rostelecom 100.8 billion rubles of total revenue of 297.4 billion rubles. The operator, however, has failed to fulfil the program of its development for two years.

(57.3387 rubles – U.S. $1)

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