Published: 09.20 Europe/London, June 11, 2011

Russia’s MegaFon has completed the acquisition of the ISP NetByNet for a fee of $270 million (€186.8 million).

Kommersant reports that by doing so the mobile company has entered the mass-market broadband internet sector, becoming the fourth largest provider of services in Moscow, with a 10% share.

NetByNet provides TV services and broadband internet access to around 450,000 private and 6,000 corporate subscribers in the capital, Moscow region and five areas of the central federal district.

NetByNet was until now owned by Fairlie Holding and Finance Limited, whose main shareholder, Gregory Berenstein, held a 34% stake in the company.

Gazprombank held 31%, Alton Capital Partners and Ivan Tavrin 16% each, with the remaining shares distributed amongst the management.