Russia’s Rostelecom Preparing To Buy Armenia’s GNC-Alfa And Ucom

RUSSIA’S ROSTELECOM PREPARING TO BUY ARMENIA’S GNC-ALFA AND UCOM

epress.am
01.13.2012

Russian telecommunications provider Rostelecom intends to acquire
75% minus 1 share of Armenian telecommunications operator GNC-Alfa,
and possibly also internet service provider Ucom, which will provide
the Russian company with 13% of the Armenian market of broadband
internet access.

“Traffic from the Persian Gulf to Europe is moving in a very promising
direction. Part of the route goes through Armenia and the purchase of
the local backbone operator will strengthen Rostelecom’s position,”
said a source close to the telecommunications provider.

The broadband market volume in Armenia in 2011 is estimated at nearly
$40 million. GNC-Alfa’s share in the market is about 2%.

According to the source, that Rostelecom might also purchase major
ISP Ucom (which ensures 11% of Armenia’s broadband market, has 19,500
subscribers and its revenue in 2011 was forecast at $5.3 million)
in the future is not ruled out.

GNC-Alfa owns a 1.5km-long fiber-optic network passing along the
Armenia-Iran gas pipeline and is considered the largest independent
player in the local market. In 2011, according to preliminary data,
its revenue was $12 million.