ROSTELECOM AT A GLANCE
Rostelecom is Russia’s national telecommunications operator and one of the largest telecommunications companies in the country.
The Company owns and operates a technologically advanced nationwide fiber-optic backbone network, approximately 160,000 km in length, enabling it to provide voice, data and IP services to business and residential customers across the entire Russian Federation and to both domestic and international operators.
Rostelecom continues to provide primarily fixed-line domestic (DLD) and international (ILD) long-distance services to corporate and residential end-customers across Russia. The Company is the leader in this segment of the domestic market with a market share of approximately 50%. In the residential fixed-line DLD/ILD service market, Rostelecom continues to consolidate its dominant position, approximately maintaining an 80% market share.
The Company is a major provider of telecommunications services to state organizations and governmental agencies as well as to the largest corporate companies including television and radio broadcasters. The high capacity of Rostelecom’s network enables it to handle the majority of long-distance traffic transit and leased line services for both Russian and international operators.
In addition to traditional services, Rostelecom is actively diversifying its business through the development of new products and offerings incorporating Internet, VPN and Data Center services, intelligent network services (INS) and videoconferencing amongst others. The Company is also focused on diversifying its operations geographically.
During the three year period that the Company has been active in the Russian data transmission market, Rostelecom has become the market leader in the wholesale Internet services segment.
Rostelecom has a strong position in the international telecom segment, having established direct international connections with more than 150 operators in 70 countries, participating in 25 international cable systems and cooperating with approximately 600 fixed-line and mobile operators inside and outside Russia. The Company belongs to a number of international industry organizations, including the International Telecommunication Union (ITU), the Telecommunication Operators Board of the Regional Commonwealth in the field of Communications (RCC), the Pacific Telecommunications Council (PTC) and the International Cable Protection Committee (ICPC).
Rostelecom is committed to delivering value to its shareholders, with a focus on maintaining its strong financial position. Currently, Svyazinvest, the state-controlled holding company, is Rostelecom’s majority shareholder, owning 50.7% of ordinary (voting) shares. The Russian Deposit Insurance Agency owns 30.0% and Vnesheconombank owns 9.8% of the Company’s ordinary stock. As a result, Rostelecom’s public free float comprises of the remaining approximate10% of ordinary shares and 100% of the Company’s preferred shares.
Currently, Rostelecom’s securities trade on the RTS and MICEX stock exchanges in Russia and on the world’s major markets including the London and Frankfurt stock exchanges, as well as the OTCQX in the US.
At the end of 2009, the Russian government approved the reorganization of Svyazinvest, with a view to consolidating its assets under the Rostelecom umbrella in order to create an integrated telecom group, capable of delivering a comprehensive range of services throughout Russia. This restructuring is due to be completed in May 2011.
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