Comstar acquires Ural, plans IPTV rollout

July 11, 2008 - Russian telco Comstar UTS has acquired a 100% stake in Ural Telephone Company (UTC), an alternative telecoms provider operating in Russia's Ural Federal District, for RUB1.015bn (US$43.4mn).

The purchase brings Comstar 61,000 new customers, and the company has stated that UTC will soon offer IPTV and expand its broadband service offerings.  Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: “We have acquired one of the leading alternative operators in Russia in line with the group’s regional development strategy. The acquisition of UTC allowed us to significantly expand our presence in the telecommunications market of the Ural Federal District, where we are already operating in the Tyumen region, the Khanty-Mansi and the Yamalo-Nenets Autonomous Areas.”

UTC reported revenues of US$20.7mn for 2007, up 43% year-on-year, with Ebitda of US$4.73mn.  Comstar UTS already operates IPTV services in various locations across Russia.