Svyazinvest to complete Rostelecom reorganization

MOSCOW, April 1 (Itar-Tass) -- Russia's Svyazinvest telecom holding
will complete the reorganization of its subsidiary Rostelecom on Friday
which will unite all the seven inter-regional companies and develop into a
nationwide operator competing with the big troika of national mobile
carriers.
Svyazinvest spokesman Igor Pshenichnikov told Tass a corresponding
entry will be made into the Unified Register of legal entities. "The
emergence of a new and united Rostelecom is the result of intense two-year
work of Svyazinvest, Rostelecom and regional companies," he said.
Russian Communications Minister Igor Shchegolev earlier said the
merger of all inter-regional companies into Rostelecom will "offer yet
another strong player to the market which will promote competition and
consequently make communication prices cheaper in the country."
"A big company will emerge, which due to decreased costs and rational
spending will offer cheaper products," he said.
Shchegolev also believes the reorganization will up the capitalization
and rating of the company both in Russia and abroad.
The unified company is likely to get listed at the London Stock
Exchange and UralSib Capital estimated one share of the company will cost
5.3 dollars.
The unified Rostelecom in which the government will hold over 50
percent will cost 354.7 billion rubles, experts estimated.
Chairman of the State Duma committee on economic policy Yevgeny
Fedorov said the emergence of the fourth major player that will compete
with the big troika comprising MTS, Vympelcom, and Megafon, "will promote
competition and decrease communication prices."
Several technical, financial and organizational procedures are still
necessary for the united company to launch proper operations.