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Articles & publications
14.06.2010
"Svyazinvest raised net profit and achieved better operating efficiency" - SchegolevInterfax
The Russian Telecommunications Minister Igor Schegolev recently reported to Prime Minister Vladimir Putin on the results of the operations of Svyazinvest telecommunications holding.
“It (the company) is currently in the restructuring phase. The results of full-year 2009 and the first quarter of 2010 look encouraging. The holding managed to substantially boost its net profit, while achieving operating efficiency. This means that revenue is growing at a faster pace than cost”, Mr. Schegolev told the Prime Minister during the work meeting.
”The holding’s 2010 investment program will be much larger than the one that was implemented in 2009. In addition, 2009 was a year marked by the crisis and investments were put on hold, while revenue continued to pour in, which allowed us to accumulate profit, the telecom minister said.
”Right now, the company is in the process of switching over to the new investment program, which focuses on the most advanced technologies in order to allow mass Internet access at fast speeds and affordable tariffs”, Mr. Schegolev said.
He went on to say that one of these indicators, which, in market terms, could raise misgivings, is the decline in average revenue per user (ARPU). “The reason for this is that the company is lowering its rapidly reducing its Internet access tariffs”, the telecom minister pointed out.
”Now, since the Russian population has great expectations that tariffs will be comparable throughout the entire country, the company adopted the decision to phase in the so-called social tariff. It will be fixed. It will be a fairly slow connection but will still allow users to take advantage of information services and state services. I’m talking about sites containing mainly text information. There will be higher charges for access to video footage and more sophisticated services. But people who are looking for basic information will be able to get it at very affordable rates”, Mr. Schegolev emphasized.
He went on to say that “the company has set the challenge of keeping a subscriber range of RUR 250-500 per month”. This is comparable with the rates currently see in such large cities as Moscow and Saint Petersburg. Right now, the Far East lags quite far behind and the current structure of the company does not make it possible to reach these figures. But after the merger takes place – and we expect to wrap up all legal aspects within a year – we’ll be well positioned be achieve some serious cost cutting for Internet also in the Far East”, Schegolev concluded.
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