Russian regional cable sale mooted

By Chris Dziadul
December 21, 2009 07.50 UK

Russia may be about to see significant consolidation in its regional cable networks.

According to Lenta, MTS, which owns the brand Stream TV, has entered into negotiations with ER-Telecom, one of the country’s largest cable companies.

ER-Telecom owns the brands Divan-TV and Divan-TV+ and has a presence in 17 cities in the Volga and Ural regions. It claims 39% and 32% respective market shares in the cable and broadband internet sectors in those cities.

ER-Telecom’s value is put at around R5 billion (€113.8 million). MTS is apparently interested in acquiring networks in cities with populations of at least 100,000-200,000.