Fixed-line telecommunications company Comstar UTS has completed the acquisition of telecommunications service provider Digital Telephone Networks for $167.4m.
Digital Telephone Networks (DTN) provides telecommunication services, including digital telephony, leased channels, and internet access to residential and corporate subscribers. It has over 155,000 telephone subscribers and reported revenues of $41.8m for the nine months ended September 30, 2007.
The acquisition will enable Comstar to expand its services in the Rostov region of the southern federal district of Russia. Comstar has estimated that revenues from the fixed-line services, internet connection and data transmission market in the Rostov region is expected to grow by more than 23% in 2007.
In a similar move, AT&T acquired Dobson Communications on November 16, 2007. This acquisition is expected to expand AT&T’s GSM and enhanced data rates for global evolution (EDGE) services in 17 states including Illinois, Kentucky, Michigan, Texas and Wisconsin.
Sergey Pridantsev, president and chief executive, Comstar UTS said: Digital Telephone Networks is the largest independent alternative operator in Russia with higher profitability than the industry average. It will have a positive impact on the financial results of Comstar-UTS Group and help us to strengthen our leading position in the highly attractive alternative telecommunication market in the Southern region of Russia.
To further expand its fixed-line telecommunications, mobile, and broadband services in the western Siberian Russia, Comstar acquired a local fixed-line service provider Regional Technical Centre in November 2007.
Source: ComputerWire daily updates