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Golden Telecom announced the acquisition of Kubtelecom

04 августа 2006
In a further sign of its commitment to expand in the Russian regions with broadband services, Golden Telecom announced the acquisition of a controlling interest in Kubtelecom. Kubtelecom is comprised of three telecom service providers operating in the largest cities in the Krasnodarsky region of Russia: Kubtelecom provides telecommunication services in Krasnodar, Anapa, Novorossiysk, and Temryuk. Kubtelecom has ownership interests in Spektr, which operates in Gelendzhik, and Krasnodar-based Kubintersvyaz.

In addition to modern services provided to business customers, operators and residential market, such as broadband Internet access, digital switched voice and data, Kubtelecom also provides fast growing cable TV services and wireless CDMA access. Kubtelecom is well poised to begin to provide triple play services to Krasnodar mass market consumers. Kubtelecom operates fiber optic and copper networks covering Krasnodar, Anapa, Novorossiysk, Temryuk, Gelendzhik and Timashevsk. There are 1.5 million permanent residents in these cities to whom Golden Telecom will offer services through Kubtelecom and its branches. In addition, Golden Telecom will focus on offering services to an estimated 7-10 million tourists and visitors who visit the region each year.

This acquisition strengthens Golden Telecom’s position in the region by complementing its branches in Krasnodar and Novorossyisk, and Sochi Telecom, a wholly-owned local service provider, of Golden Telecom.

Kubtelecom provides broadband services based on wireline access to more than 40,000 households in Krasnodar, using the following access approaches: ADSL, Cable TV, FTTH (fiber to the home)

Using its CDMA network, Kubtelecom rapidly installs high quality communication services to locations which lack basic telecom infrastructure.

Kubtelecom has a large base of customers with over 50,000 numbers already in use. More than 5,000 clients already subscribe to its cable TV services. In addition to this strong business and consumer client base and a broad access network, Kubtelecom has acquired scarce resources for further development of its business: over 100,000 voice numbers are allocated within Krasnodarsky Region; an existing zonal microwave network to large cities of Krasnodar region with capacity of up to 155Mbit/s.

Commenting on the acquisition Jean-Pierre Vandromme, Golden Telecom’s Chief Executive Officer, noted: “The acquisition of Kubtelecom will not only reinforce our current position in the Krasnodar region but will allow us to capitalize on Golden Telecom’s resources in an active and efficient way to focus on the implementation of our strategy of broadband access in promising regional economies. We will achieve considerable growth in our position on the broadband access market by bundling the local loop and the zonal network of Kubtelecom with Golden Telecom’s long distance facilities. As a result we will have a complete set of facilities to provide affordable and competitive broadband access services in the cities of the Krasnodarsky region.”

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