A view of Golden Telecom billboard. Golden Telecom CEO Jean-Pierre Vandromme vowed yesterday that, in five or six years, his holding would become the biggest telecom company in Russia in terms of capitalization and revenues, well ahead of Svyazinvest.
Photo: Sergey Starostenko
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Golden Telecom Claims Gold
Golden Telecom CEO Jean-Pierre Vandromme vowed yesterday that, in five or six years, his holding would become the biggest telecom company in Russia in terms of capitalization and revenues, well ahead of Svyazinvest. For this purpose, Golden Telecom would double the results each three years. The analysts say the holding will attain the target provided it implements the plans for creating multi-service networks.
Jean-Pierre Vandromme unveiled the company’s grandiose plans over the news conference in St. Petersburg. He said, in five to six years, Golden Telecom would become Russia’s biggest telecom operator in terms of the revenues and capitalization, outpacing Svyazinvest. For this purpose, GD is to annually step up by 25 percent to 30 percent, doubling the business each three years.
According to Mr Vandromme, the growth rates will be ensured by expansion on the mass market of wide-band access and multiple services. In summer, GT and its subsidiary Corbina Telecom presented the project to construct wide-band networks in 65 cities of Russia. GT intends to inject roughly $1.5 billion to create the infrastructure by 2010 and connect over 40 million users to it (Svyazinvest has a bit more than 30 million telecom subscribers).
Nowadays, however, GT isn’t in the same league with Svyazinvest both in capitalization and revenues. GT estimates 2007 revenues at $1.3 billion, while the firms of Svyazinvest are expected to generate roughly $10 billion this year. As of the start of the yesterday’s trading on NASDAQ, the GT capitalization was $4.17 billion. But the overall capitalization of Svyazinvest (with the worth of 28 percent in MGTS) neared $19 billion yesterday.
www.kommersant.com
All the Article in Russian as of Nov. 02, 2007
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