TransTeleCom to build WiMAX networks in 25 Russian towns in H1 2012

TransTeleCom(TTK), a Russian backbone telecom operator, plans to build WiMAX networks and to provide fixe-linetelephony and internet access services in 25 small-sized Russian towns by the summer 2012 reported ComNews. The operator plans to invest approximately RUB 1bn (€25m) in this project. Currently, the company is holding negotiations with potential equipment providers.

According to Artyom Kudreavtsev, CEO of the company, the profitability of backbone operators is not growing proportionally to the volume of traffic they transfer, therefore, it is a logical step for the company to start the development of telecommunication services for the end users.

TTK has the licenses for development of WiMAX networks in the frequency bands of 3,400-3,450 MHz and 3,500-3,550 MHz in 25 towns in Russia. The operator considers that this technology has an advantage in the smaller one-floor towns in comparison to FTTx networks the company develops now.

This autumn the operator already had 300,000 private broadband internet subscribers planning to reach 2.3 million customers by the end of 2015. After the completion of the running FTTx network construction projects at the end of 2011, TTK will be present in 94 towns in Russia.

Also, the company plans RUB 31.7bn (€792m) capital expenditures by 2015, including RUB 20bn (€500m) allocated for the development of broadband internet access.

TransTeleCom: key financial data*, 2007- 2010

2007 2008 2009 2010
Total revenues (RUB bn) 24.1 27.5 22 26.2
Including provision of DLD/ILD telephony to end users (RUB bn) n/a 2.0 4.5 4.0
Net profit (RUB bn) 2.53 1.90 0.94 (0.83)

* Financial data are given in accordance with IFRS.

Source: TransTeleCom, MIS-Inform, 2011