The Russia Journal B U S I N E S S NOVEMBER 1 - 7, 1999 Page 19
Deutsche Telekom... Moscow tunes in
Continued from Page 9
said: "The acquisition of most of
MediaOne International's assets in
Central Europe and Russia is a logical
International, said, “We are delight- "Further, in Russia, one should be
ed with this transaction because it extremely careful because [the tele-
involves the right buyer at the right com business] requires high invest-
price, and allows for con- ment and is offering low
to the Internet
expansion of Deutsche Telekom's tinuity of ownership and returns. At the same posts are expected to go to
presence in Europe." performance. time, the mobile [phone] By POLINA ZVEREVA ArtCom’s top managers.
Telekom is a former state monop- RTDC holdings also market is likely to be The Russia Journal Detailed information on the
oly and Europe's biggest phone com- include 22 percent of very lucrative in the project is scarce and being kept
pany, and while its rivals have been Moscow Cellular Com- future." ussian telecom companies confidential.
battling to carve up the rich Western pany (MCC), which has Other analysts believe ArtCom and Neocom-R It is known, however, that the
European markets, analysts say approximately 90,000 that the entire telecom- announced a merger and first stage is scheduled to be com-
Telekom believes Eastern Europe cellular subscribers; and munications sector in joint project to set up radio access plete by late January 2000, and
offers long-term prospects for rela- another 42.5 percent of Russia could begin to to the Internet for 4,000 clients in that investments provided in
tively cheap prices. Delta Telecom, a St. show real growth in the Moscow and the Moscow region. exchange for stakes in the project
"If you cannot buy in the West, you Petersburg cellular near future. They cau- The companies were estab- will amount to several million dol-
buy in the East," Juergen Roethig, provider with about Gary Ames tioned, however, that lished in 1995, and since 1996 have lars.
telecommunications analyst in 45,500 subscribers. the sector would require cooperated in developing Names of investors have not
Frankfurt at the B. Meltzer Co. bank, Alex Kantarovich, a telecommu- a longer-term perspective. Moscow’s wireless data transfer been released, and according to
told the International Herald nications analyst with IBN AMRO "If one is prepared to engage in network. preliminary estimates, the project
Tribune. Equities Russia, said it would be a strategic investment and the indus- Currently, the network com- will repay in four years.
RTDC was established in great boost if DT spent the money to try undergoes some restructuring, prises 20 base stations, owns In the first stage, the number of
December 1993 by U.S. telecommu- upgrade MCC to digital, but it then the telecoms market will access lines connecting it to base stations will be increased to
nications company MediaOne In- would require a large strategic become quite interesting," said Moscow’s leading Internet 40 and the number of subscribers
ternational and eight independent investment. Brunswick's Kabanovsky. "Say what providers, and services around to 1,000.
investment organizations. Until it "To make MCC digital would you will, growth is really possible." 200 corporate clients. Okhotnikov said the project will
sold its stake to Deutsche Telekom, require an investment of $100 mil- He said the sector could look quite The new project aims to drasti- aim to make Internet access via
MediaOne International held a 66.5 lion to $150 million, and given that different by as soon as the end of next cally expand the network and its radio as affordable and popular as
percent shareholding in RTDC. Deutsche will only control 22 per- year, pointing to a potential freeing clientele. via ordinary telephone lines, while
Gary Ames, chief executive offi- cent of it through RTDC, it might up of the pricing structure through ArtCom will handle network the quality of radio access is
cer and president of MediaOne not want to put in so much money." the changes of tariff regulations. construction and servicing, while thought to be much higher.
Neocom-R, which owns radio "Our aim is to make our services
bands, will function as operator. as quick and convenient as those
The companies will make a partial of, say, Kosmos TV or NTV-Plus
asset swap, details of which have satellite television channels,"
not been revealed for commercial Okhotnikov said.
reasons. As the project is implemented,
ArtCom CEO Alexander ArtCom and Neocom-R hope to
Okhotnikov said that, after the reduce prices to $900 for a client’s
The Russia Journal swap, the companies will consoli-
date budgets, set up a unified
management board and reorga-
equipment set and $120 for a
monthly subscription, and to build
clientele by attracting small busi-
Call 913 3515 or 234 9696 and leave message for pager ‘RJ’ nize the operation’s structure. Key nessmen and individuals.
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