Russia’s national telecom operator Rostelecom yesterday announced that its wholly-owned subsidiary, Teleset Networks, has invested 682 million rubles ($22.5 million) to take a 75% minus one share stake in GNC-ALFA, the largest independent Internet and data provider in Armenia.
“This is the first acquisition outside of Russia that we have concluded as part of our international expansion policy. The acquisition of a control stake in GNC-ALFA provides Rostelecom with access to a well-developed infrastructure for broadband and pay-TV services in the Armenian telecommunications market, a market which has a significant growth potential,” Rostelecom president Alexander Provotorov commented.
Another candidate for the acquisition was France Telecom, the Russian press reported last year.
GNC-Alfa has a 1,500 km fiber-optic cable network than covers 70% of the Armenian territory. It provides fixed and mobile operators, ISPs and large corporations with transport network services and high speed Internet.
The Armenian company claims to be the largest independent aggregator of national IP-traffic, and its subsequent transit, in the country, Telegeography.com reported. In 2012, it plans to develop its suite of broadband internet and pay-TV services for the residential segment as it looks to stimulate revenue growth in its business. GNC-ALFA reported revenues of approximately $12 million in 2011, with an EBITDA margin of 48%. The company’s net debt stands at less than $1 million, according to Telegeography.com
