VimpelCom may sell fixed-line business

Russian service provider may be gearing up to sell its fixed-line residential business, according to press reports.

According to Reuters, VimpelCom may sell its fixed-line residential business to focus on its higher-margin mobile operations and to reduce its debts.

Russian news service Vedomosti has reported that VimpelCom values its fixed business at about US$1 billion (€740 million). The operators provide telephony, internet and TV services under the Beeline brand. However, the vast bulk of the operator’s revenues in Russia come from its mobile business, where it is the number three operator behind MTS and MegaFon. All three, together with state-owned Rostelecom have been awarded high-speed mobile broadband licences.

According to Vedomosti, broadband service providers ER-Telecom and TTK could be potential buyers, as could a group of investors close to businessmen Arkady and Boris Rotenberg.

Tags: Russia, VimpelCom

Most Recent