MTS, a leading Russian mobile operator, announced today it has acquired TVT, a leading provider of cable TV and fixed broadband services in the republic of Tatarstan. The purchase price amounted to $162.9 million, in addition to $17.1 million in net debt assumed by MTS.
“The acquisition allows MTS to strengthen its leadership position in Tatarstan and enter the market of pay-TV, broadband and fixed telephony services in the region,” the press-release reads.
TVT is the leading pay TV provider in two of Tatarstan’s largest cities, Kazan, the capital, and Naberezhnye Chelny, with market shares reaching 55% and 72% respectively. Its pay TV subscriber base in the region exceeds 500,000 while its broadband network covers more than 600,000 households.
TVT also provides fixed broadband services in Kazan, Naberezhnye Chelny and Nizhnekamsk with market shares of 13%, 19.5% and 18.5% in terms of subscribers respectively. TVT also offers fixed telephony services in Kazan.
Among MTS’s recent acquisitions was Ufanet, a telecom operator in Bashkortostan, in April of this year.
MTS competes with other players such as mobile operator Megafon and telecom operator Rostelecom, which also aim to diversify their offerings and expand their share of the Russian telecom market.
