COMSTAR – United TeleSystems is engaged in day-to-day management of fixed communication line of AFK Sistema, including operators who lead the traditional and alternative segments of fixed communication in Moscow, as well as growing regional and abroad assets.
The Group comprises Moscow City Telephone Network (MGTS), a leading fixed operator in Europe, whose network covers 97% of all Moscow households and provides last mile access. Having united leaders of the telecom market to form a single efficient operator in Moscow and regions of Russia, COMSTAR-UTS is always at the highest professional and quality level in performing its main task: creation of advanced, flexible communication environment comfortable to both Human and Business.
Using an extensive technological base (integrated infrastructure in Moscow, own transport core and new generation access networks (NGN), free telephone number capacity and required radio frequencies), the Company offers unique integrated services and solutions for home and office that allow users to stay connected. Product portfolio of COMSTAR-UTS includes local, interregional, long-distance and international telephony, high-speed wired and wireless Internet access (including WiMAX-powered mobile access), pay-TV (over-the-air, cable and IP) and high-definition TV (HDTV), data services, audio and video conferencing, call centers and virtual private networks (VPN), leased lines and other services.
COMSTAR-UTS has strengthened its positions in Moscow and regions of Russia due to intensive construction and upgrading of its networks, launch of new products and thoroughly planned takeovers and mergers. Since December 2006, COMSTAR-UTS has been holding a blocking minority ownership of Svyazinvest, which will allow the Company to participate in reorganization of this largest telecom group in the long term.
In June 2007, position of the COMSTAR-UTS president was taken by Sergey Pridantsev, who used to be the head of CenterTelecom. In October 2007, COMSTAR-UTS Board of Directors adopted a general development strategy for the Group up to 2011. It is called “Five Attack Angles” and comprises five key lines:
- Structure – optimization of the ownership structure and assets management, business integration, shift from the holding model to a traditional operating company.
- Broadband Internet – to become a leader of the Internet access and IPTV market in Moscow by use of benefits offered by the two-segment model of promotion (premium segment – COMSTAR, mass segment – MGTS) and to become a leading provider of broadband access and pay-TV in regions of Russia.
- MGTS – network upgrade and enhanced performance of the company.
- Regions – aggressive promotion in RF regions, increased share of the regional business through organic growth and merger-acquisition effect (M&A).
- Svyazinvest – strategic investments, efficient management of the group blocking minority ownership.
To implement the strategy, in 2008, COMSTAR – United TeleSystems acquired and consolidated a number of large regional companies, reorganized and integrated COMSTAR-Direct and completed a transaction related to acquisition of STREAM-TV, Russia’s largest provider of pay-TV and broadband Internet.
As a result, the Company has reached the national level. Geography of COMSTAR-UTS presence has extended to cover 70 cities in 29 RF constituent entities, including Moscow, with a total population of over 48 million people. Today, affiliates, branches and associated companies of COMSTAR-UTS and STREAM-TV operate in 6 federal districts of the RF (except for the Far East) and serve some 4 million voice subscribers (private users), more than 1 million residential broadband subscribers and about 2.1 million pay-TV subscribers. The main strategic goal of COMSTAR-UTS is to become a leader on the country’s alternative telecom market by incorporating a single integrated operating company and its efficient development under COMSTAR brand.
Clear development strategy and efficient business management on Moscow and regional telecom markets ensure high financial performance of COMSTAR-UTS. The aggregate revenue for 9 months of 2008 accrued 16% as compared to the same period of 2007 and amounted to US$ 421.6 million, while net profit reached US$ 36.4 million. The Company will disclose its financial performance in 2008 in the first half of April 2009.
In 2008, COMSTAR-UTS was acknowledged to be the best telecommunication company in Russia according to Global Finance, well-recognized international magazine. The operator is among TOP 100 enterprises of the country (rating by AK&M). COMSTAR-UTS and MGTS have credit rating with Standard&Poors' BB, Stable forecast.
A unique combination of opportunities of the Group members, up-to-date technological base and efficient business model allows COMSTAR-UTS to be one step ahead its competitors, shape the market and guarantee sustained growth in the future.