The Russian telco MTS is to combine its operations with the fixed line business MGTS in Moscow and Moscow region.

As a result, it will be able offer customers broadband, pay-TV and digital telephony, under the MTS brand, by the end of this year.

By consolidating its assets in this way, MTS expects to reduce its group cost by 10% in the next six months.

It will continue to focus on the development of mobile broadband, LTE and 3G in Moscow, and its total investment in the Moscow region in the period 2013-2015 will amount to some R12 billion (256.2 million).

MTS says the Moscow market is highly fragmented and that by consolidating its operations and introduction of new technologies, packages and convergent offers it aims to double its subscriber base in the suburbs by the end of 2016.