World VoIP NewsMegafon buys Synterra for USD745mMegafon buys Synterra for USD745m

Megafon buys Synterra for USD745m

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MegaFon closes USD745 long-distance operator  million Synterra purchase.
Dow Jones reports that Russian cellco MegaFon has closed the USD745 million acquisition of long-distance operator Synterra, following several months of negotiations with owner PromSvyazCapital and rumours of a counter bid from Rostelecom.

MegaFon’s two larger cellular rivals Mobile TeleSystems (MTS) and Vimpelcom both own extensive long-distance infrastructure which they are in the process of expanding.

Commenting on MegaFon's acquisition of 100 percent stake of Synterra, the group of Synterra companies spokesman Yekaterina Andreyeva said that the shareholders of MegaFon will present their strategy for the integration of Synterra and its subsidiaries in the business of MegaFon by late June, reported.

"The new strategy of MegaFon will determine the future of Synterra's assets and its international backbone network," she said.

An acquisition of Synterra is mutually beneficial for both companies. It will strengthen the position of MegaFon on the markets of telecommunications, fixed and mobile broadband Internet access, converged services. "Synterra", in its turn, receives powerful human, financial, technological resources, OJSC "MegaFon" PR director Peter Lidov told Trend.

"Our goal is to become the leader on the broadband market (both mobile and fixed) by 2012. It not ruled out that there will be a different approach to conquer this market in different regions of Russia by buying regional companies, the construction of third generation networks, through other technologies. "MegaFon" is the leader on mobile Internet services market. Our 3G network now is ahead in terms of subscribers, traffic and the number of base stations. Using of Synterra's main channels will allow "MegaFon" to improve the quality of services in 3G networks and increase transmission speed data," Lidov said.

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