Acquire an established operator with a large and loyal base of SME customers
The Business
The Company is a universal fixed-line telecom operator, which provides a full range of communications services for business subscribers. Founded in Moscow in 1997, the Company has its own cable network that covers a large part of Moscow and Moscow region. In 2010, the Company began to provide communications services in St. Petersburg and the surrounding region, and it plans to begin operation in Samara in the near future.

The Company has about 700 customers, mostly SMEs. Subscriber loyalty is very high – the turnover rate is about one percent.
Market
The Company owns a network that consists of 150 km cable lines and 60 communication nodes. It also has its own numbering capacity exceeding 30 thousand numbers. The Company network has connections with all the leading telecom operators in Moscow region, and junction points with the international telephone exchange MMTS-9. These allow it to provide customers with a very broad range of communications services. The Company also has five 5.2 GHz frequency assignments in the Moscow region for development of a WiMAX wireless network.

The Company expects sales in 2010 to be about $2.7m with EBITDA of 22%. Company shareholders intend to sell up to 100% of the business.

Sector: Telecom
Segment: Fixed Line
Region: Russia
Financing Size: $1m to $5m
Contact: Inna Yumasheva
Company: Meridian Capital
Telephone: +7 495 937 5933
Email: [email protected]