OJSC Rostelecom (News - Alert) has just finalized an enhanced approach for the expansion of the organization from 2013 to 2017. An approval in this regard was received from the board of directors at a meeting held on December 26, 2012. The board also arranged a list of requirements that need to be followed up with the Federal Agency for the State Property Management or Rosimuschestvo.
In a statement, Ivan Rodionov, chairman, Board of Directors said, “We have actualized the Strategy taking into account the market dynamics and focusing on growth segments like fixed and mobile data, Pay TV and innovative services. In legacy segments we are more focused on cost optimization.”
Market inclinations have been considered by the latest approved strategy. The organization also released modified launch dates of its UMTS networks along with those in Moscow and St. Petersburg.
The differentiation between administering Rostelecom fixed line business and the organization’s main development drivers like pioneering cloud services and mobile business are highlighted by the modified approach. At least 50 percent of the organization’s revenues are accounted by the current fixed-line business. However, this revenue and corresponding profitability are forecasted to decrease during the next five years. Revenue from broadband and IPTV are expected to grow more than then revenue from fixed line telephony.
The Rostelecom expansion is expected to be aligned with the Russian telecom market due to the development in pioneering cloud services and WBB. The business expansion will be made possible by concentrating capex on budding broadband access, pay TV, transport network and the mobile arena.
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Edited by Jamie Epstein