Russian operator buys out Alliance Telecom to boost its business in Primorsky region

Russia’s Rostelecom has announced the acquisition of Alliance Telecom, an outfit that provides Internet and TV services in the far south east of the country.

The companies did not disclose the value of the deal.

The transaction was carried out via Rostelecom’s Bashtel subsidiary, which bought out three separate companies to give it sole control of Alliance Telecom.

Alliance Telecom operates in the Primorsky region of Russia, offering services to homes and businesses in the cities of Vladivostok, Ussuriysk, Nakhodka and Artyom. It generates 80% of its revenue from the consumer market, Rostelecom said, with turnover coming in at 900 million roubles (€12 million) last year.

"The acquisition will strengthen Rostelecom’s position in the broadband internet market in the Primorsky region," said Anna Shumeyko, SVP and chief of staff of the presidential executive office of Rostelecom, in a statement on Monday.

"We are seeing a lot of opportunities to realise the synergy effects from operational cost optimization as well as from upselling the Alliance Telecom subscriber base with an expanded set of services, currently available to Rostelecom’s clients," she said.

Alliance’s customer base amounts to 110,000 consumer households and 6,000 B2B clients.