Elbrus Capital creates a new internet provider in Russia

Elbrus Capital, a Russian direct investments fund, announced the creation of Strela Telecom, a new internet access and pay TV services provider, which will operate in towns with 100,000-600,000 inhabitants in the Siberian and Far East regions of Russia, including Tomsk, Khabarovsk and Angarsk.

Strela Telecom was formed after the merger of eight smaller regional companies and has already had more than 200,000 subscribers. Internet penetration in the towns of Siberia and the Far East regions does not exceed 15%, which is below the Russian average. Therefore, the new operator has a sufficient space for the business growth.

According to Konstantin Ankilov, a managing partner in the Russian consulting company iKS-Consulting, the initial investments of Elbrus Capital in the project can reach an estimated $70m (€50.7m), as quoted in Rbc Daily. Mr Ankilov considers the newly formed company has been created with the aim to be sold to one of the federal telecom services providers in the near future.