MegaFon, a major Russian mobile operator, made a further step last Friday towards business diversification and regional expansion by acquiring Yugratel, a broadband Internet and cable TV provider operating in the Khanty-Mansiysk Autonomous District of Western Siberia.
Yugratel was sold through an auction sale by the local authorities for 2.4 billion rubles, or approximately $76 million.
Yugratel is a relatively small player in the region, with 28,000 customers, or 11% of the local market, far behind Rostelecom’s 49% market share. But Yugratel enjoys a healthy financial situation with a net profit amounting to 129 million rubles, or $4.1 million in 2010 along with a good future earnings potential, the Russian online publication ComNews.ru quoted experts as saying.
The Russian antimonopoly authorities did not allow Rostelecom, Russia’s national telecom operator, to take part in the auction.
MegaFon, which has ambitions to become a ‘universal telecom operator,’ has made some notable acquisitions over the past few years. Among the most recent ones, earlier this month, was Luchshe.net, a broadband operator that provides services in Kursk under the SVOЁ trademark.
In November, the company announced the acquisition of broadband Internet access providers Internet Center and Svyazinform, which serve more than 60,000 customers in Chuvashia under the Chebnet brand.
In June, Megafon acquired St. Petersburg Internet provider Web Plus, and NetByNet, a fixed broadband Internet, digital TV and IP telephony operator operating in Moscow and a number of regions.
In 2010, MegaFon acquired Synterra, a company with a large terrestrial and satellite telecommunications infrastructure.
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