Translated by
2019/03/14 16:32:46

History of Rostelecom

The main facts in activity Rostelecom from its creation up to now.


The main article about the company: Rostelecom.

Some subjects connected with the history of Rostelecom are taken out in separate articles:


Joint with Tele2 and Nokia testing of IoT-solutions for housing and public utilities

On April 15, 2019 the company Tele2 reported that it together with the companies "Rostelecom" and Nokia tested solutions on a basis Internet of Things (Internet of Things, IoT) for services HOUSING AND PUBLIC UTILITIES. Tests took place in To Moscow based on LTE- Tele2 networks. The technology will allow power sales the companies to reduce costs for collecting data, and to users – to be calculated with convenience for electricity. In more detail here.

Rostec and Rostelecom will have one more joint venture for production of DWH

In April, 2019 Rostelecom announced plans of entry into the capital of Natsionalnye tekhnologii LLC. Under the terms of the transaction, Rostelecom redeems 49% of shares from structures "IKS of Holding" of Anton Cherepennikov - Tsitadel holding and KNS Yadro. Rostec will possess 51% of shares in authorized capital of the company. Read more here.

Cooperation with the HSE and Cisco in digitalization of educational processes

On April 4, 2019 HIGHER SCHOOL OF ECONOMICS NATIONAL RESEARCH UNIVERSITY reported that together with the companies Cisco and "Rostelecom" signed the five-year agreement on cooperation directed to implementation of joint activities within education the Digital program, digitalization of educational processes and training of qualified specialists for hi-tech economies. Creation in Higher School of Economics National Research University of the joint educational and research Center of Digital Technologies will be result of signing of the tripartite agreement. In more detail here.

"The code of security" will implement the standard solution of Rostelecom on protection of biometric data

On March 18, 2019 Code of Security became the authorized partner of Rostelecom company in implementation of the standard solution in information security during the work with biometrics. Details here.

Rostelecom began to need less subcontractors in projects of the smart and safe city

The strategy of Rostelecom in the field of the smart and safe cities provides smaller attraction of subcontracting for benefit of expansion of own competence in the company. The senior vice president of Rostelecom Vladimir Kiriyenko told TAdviser about it in March, 2019.

We see that it is the perspective markets and we understand that those competences which we have already now allow us to apply in them for the most part of marginality. And it is projects not of the single, and demanding further service, upgrade therefore we began to move to service model, - Kiriyenko told.

"The smart city" is an active development of city infrastructure, increase in management efficiency and security, the representative of Rostelecom noted. In due time, when there were complex technology projects, for their implementation Rostelecom brought together groups which could implement them jointly. But in process of their accomplishment and accumulation of examination Rostelecom began to place bigger emphasis on own resources in the directions which it considers key, he says.

Vladimir Kiriyenko told about the shift of a priority of Rostelecom towards own competences in some directions<i> (a photo -</i>
Vladimir Kiriyenko told about the shift of a priority of Rostelecom towards own competences in some directions (a photo -
For example, many projects regarding the safe cities including installation of cameras of photo and video surveillance, the citizen police systems of warning systems are already completely executed by Rostelecom with the subsequent service, - Kiriyenko says. – So we acquire technology examination and if we consider that for us it is complementary, then we execute it.

The representative of Rostelecom specified that this is not about everything and at once: the company selects the directions, key for itself in the field of security, comfort from the city, increases in management efficiency, and on them raises own examination. More than 20 such directions are in total selected, Vladimir Kiriyenko added.

First of all, in a priority projects of video surveillance and connected with creation of Bezopasny gorod agrarian and industrial Complex, were specified in the company. But work on gain of own competences and on other directions is conducted. Regarding video surveillance, in particular, Rostelecom determined for itself by a core competency, including, and software. Therefore in 2018 Rostelecom purchased Netris IT company, Vladimir Kiriyenko explains.

In 2014-2017 in projects on video surveillance and "The safe city" Rostelecom quite often attracted, for example Technoserv company. Among other large companies subcontractors in these directions during the same period in addition to Technoserv there were also AT Consulting and NVision Group.

"The smart cities" - one of the key directions within the new business strategy of Rostelecom which implementation began in 2018. Strategy assumes transformation of the company in provider of digital solutions and services for the state, business and citizens.

The gain of revenue of Rostelecom from projects of "the smart city", in particular, in 2018 made 46%. The company earned from them 23.2 billion rubles from 320.2 billion rubles of an aggregate annual turnover. Income from services of information security in 2018 grew four times.

At the same time Rostelecom, as well as earlier, continues to cooperate with equipment manufacturers and the software, Vladimir Kiriyenko specified. The company first of all partners who supplement Rostelecom within complex projects interest.

Such partner Vladimir Kiriyenko cites as an example Rostec together with which Rostelecom participates in many projects. And in terms of delivering solutions of weight and dimensional control, photo and video fixing Rostelecom, according to him, cooperates with suppliers of all domestic solutions. In this sphere, by Kiriyenko's estimates, at the system kernel level – hardware and software systems, not less than 50% of the used solutions are domestic.

Beginning of work of JV Rostelecom and MegaFon

The Russian provider of digital services and solutions of PJSC Rostelecom announced on February 28, 2019 TAdviser the beginning of joint activity with PJSC MegaFon on development of mobile communication of fifth generation (5G) on the basis of joint venture Novye tsifrovye resheniya (ranee Didzhital dlya businessa) LLC. As specified in Rostelecom, participants of partnership will own the joint venture in equal shares. And the board member of Rostelecom Vadim Semyonov will head the company. Read more here.

Readiness to be engaged in creation of a cellular network for socially important objects of Russia

The Ministry of Telecom and Mass Communications supported the offer of Rostelecom, T2 Mobile LLC and Federal State Unitary Enterprise RTRS on determination of the only service provider of broadband wireless access for socially important objects, including the National Guard of the Russian Federation, the Ministry of Emergency Situations and the Ministry of Internal Affairs of the Russian Federation, ID Kommersant reported on February 12, 2019 with reference to the letter of the Deputy Minister of Telecom and Mass Communications Evgeny Kislyakov to Analytical center at the government. Read more here.

Tests of a system for quantum protection of data transmission

On January 29, 2019 Rostelecom reported that it successfully carried out the second test phase of the domestic equipment and solutions for the organization of quantum protection of data transmission on the operating communication fiber line (CFL). The Russian Quantum Center (RQC), QRate and S-Terra CSP companies became participants of testing. Read more here.

Creation of National competence center "Smart city"

On January 25, 2019 the State Corporation Rostec, Rosatom and Rostelecom signed the agreement on creation of National competence center "Smart city" in Moscow. Read more here.


The agreement about "A miracle the equipment" about development of the direction of the computer help in Moscow

On December 27, 2018 the Rostelecom company announced the conclusion about "A miracle the equipment" the cooperation agreement. According to the company, according to the reached agreements, partners will actively develop the direction of computer home visiting service in Moscow: remote support, repair of equipment and departure of masters. [[Company:#2018 equipment miracle|Read more here.]]

Preparation of the plan of transition on domestic software

On December 26, 2018 it became known that the Board of Directors of Rostelecom charged to a menedzhement of the company to prepare the plan of transition to use of domestic software in the next two months. The Board of Directors will approve this plan in similar time, and then it will be entered to the long-term program of development of Rostelecom.

Also the company should appoint transition, responsible for implementation, - it should hold a position not below the vice president of society. It is necessary to pass mainly to the domestic software also to child structures of Rostelecom in which its share exceeds 50%.

The government directive according to which state companies should switch to the Russian software till 2021 at the beginning of December, 2018 was signed by the Minister of Finance RUSSIAN FEDERATION Anton Siluanov. The companies where the state acts as the controlling shareholder became receivers of this document and has a majority of votes in Board of Directors.

The directive which was received also by Rostelecom obliged addressees to call Board of Directors in ten-day time, and state representatives in councils - to perform vote.

The companies should report quarterly to Minkomsvyayu on transition process.

The director of Competence center of import substitution in the field of ICT Ilya Massukh explained that all software used by the companies will be separated into classes (accounting, antiviruses, ERP systems, etc.). By 2021 the share of domestic software in each of them will have to exceed 50%. Purchase the foreign software it will turn out only if the company proves lack of the Russian analog[1].

Failure on Rostelecom network because of an error in the BGP setup

On November 27, 2018 Qrator Labs, specializing in counteraction DDoS-to the attacks and ensuring availability internet- resources, notified on an error of a configuration of networks Russian providers which led to failure at access to popular services for a large number of users of century Russia.

Border Gateway Protocol serves for traffic management at the level of telecom operators, and errors in its setup lead to illegitimate interception of traffic. If higher operators do not perform check that receive from the clients, such anomaly is capable to affect availability in scales of a national segment. On November 25, 2018 the similar error occurred also in Russia.

At 4 p.m. Moscow time the small operator Krek Ltd began to announce networks between the providers, thus having redirected a considerable part of traffic of Rostelecom on the network. The Krek network could not cope with such loading, having as a result made unavailable thousands of services for users of Rostelecom. According to Qrator Labs, the anomaly could mention from 10% to 20% of users in the Russian Federation.

For more than 5000 networks this failure became global, having redirected to a black hole traffic from other regions.

The occurred anomaly became result of two errors connected among themselves: the Krek network which made a mistake in the BGP configuration and became a problem source and network of Rostelecom which became the carrier, without having configured correct filtering on a joint with this client. Because of errors of setup of the BGP protocol these operators not only "suspended" the networks, but also created problems for other services whose traffic was intercepted. The general duration of anomaly was more than an hour.

There is a popular belief what to struggle with the similar anomalies arising abroad the network, impracticablly. However, if the source of interception of traffic is known (in this case Krek network), then operation of protection of BGP against cycles for a rupture of interception is possible. In other words, in the presence of monitoring in real time perhaps active counteraction to similar anomalies.
Alexander Azimov, network architect of Qrator Labs

What will Rostelecom in 2020 differ from Rostelecom of a sample of 2010 in? Mikhail Oseevsky's answer

In 2020 revenue of Rostelecom from digital services can reach 75-80% of all turnover, TAdviser in November, 2018 the president of the company Mikhail Oseevsky stated.

Already today 55% of revenue bring us modern digital services, and in 2020, I think, 75-80% will already fall on them, - Oseevsky in a conversation with TAdviser noted

In it key difference of Rostelecom of 2018-2020 from Rostelecom what it was in 2010. Rostelecom of 2010 is a telephone company, then more than a half of revenue to the operator was brought by classical telephony, Mikhail Oseevsky emphasized.

In the reporting Rostelecom means by digital services, mainly, cloud services and products with added value, such as, for example, Smart home.

Mikhail Oseevsky predicts significant growth of a share of revenue of the company from digital services<i> (a photo - Rostelecom)</i>
Mikhail Oseevsky predicts significant growth of a share of revenue of the company from digital services (a photo - Rostelecom)

The president of Rostelecom added in a conversation with TAdviser that the company continues to perform transition from model of telecom operator to model of the digital company providing final services.

On each of the directions of service of people, the state and business the company is going to increase quantity of products both own, and partner, and to act as single platforms and uniform integrator more and more.

Rostelecom is going to undertake the solution of all "turnkey" problems in the relations with the state and business, Oseevsky says. It includes delivery and the hardware, and provision of services. Products will become more and more, there will be at the same time the increasing diversification of the customer base of Rostelecom.

If to speak about corporate clients, we make many efforts now to offer medium and small business modern services, - the president of Rostelecom added

Earlier in 2018 the Board of Directors of Rostelecom approved the development strategy of the company till 2022. Within the strategic plan for this period continuation of transformation in "the digital partner" for the population, business and the state should become the main vector of development of Rostelecom: provider of wide range of products and services for satisfaction telecommunication, IT and other customer needs.

Infographics from the reporting of Rostelecom for the 2nd quarter 2018
Infographics from the reporting of Rostelecom for the 2nd quarter 2018

Within creation of an ecosystem of digital products and services in a B2B/G segment Rostelecom is going to pay special attention to development of data centers, solutions for "the smart cities", information security, an operator segment.

Infographics from the reporting of Rostelecom for the 2nd quarter 2018
Infographics from the reporting of Rostelecom for the 2nd quarter 2018

In turn, in B2C a segment the company puts strategic tasks an input to new houses at a construction stage, development of an ecosystem of the new products Smart Home, "Streaming of Games", "Online education", services of OTT-video, development of user base of mobile services through sale of convergent packets, etc.

Fine of 60 million rubles for cartel at biddings

The Novgorod OFAS of Russia recognized PJSC Rostelecom and Technoserv of AS LLC guilty of cartel collusion with participation in tender on creation of a complex of automatic fixing of traffic offenses, says FAS of November 8, 2018. As result department imposed on the companies a penalty for the amount of 72 million rubles from which Rostelecom should pay 60 million rubles, and "Technoserv of AS" — 12 million rubles. The decision of antimonopoly authority was supported by courts of the first and appellate instance. Read more here.

Change of positioning and rebranding

Logo Rostelecom after September 26, 2018
Logo Rostelecom after September 26, 2018

On September 26, 2018 Rostelecom announced change of positioning and rebranding, presented the updated digital services and tariff lines which consider a market change and priorities of the company.

The operating strategy of Rostelecom provides digital transformation from the operator of communication services in the IT company which provides digital services for people, business and the state.

In the first half of the year 2018 already more than a half of revenue of the company created digital and content services – Internet access, paid TV, cloud solutions and data centers, cyber security, etc. In the company there are changes too: teams and competence centers on modern digital technologies, including biometrics, cyber security, Internet of Things, the smart house and other directions are formed.

We anticipate desires of clients and we consider their needs for all fields of activity. Technological solutions of Rostelecom will help to make business more effective, and life – is more comfortable and safer. Our updated line of rates and services allows to collect a service package as a puzzle – under needs of specific family or the company.
Vladimir Kiriyenko, senior vice president of Rostelecom

Logo Rostelecom till September, 2018
Logo Rostelecom till September, 2018

Service – the multimedia Wink platform – filled up an ecosystem of services for private clients. It is an evolutionary stage of development of Interactive TV which is watched in millions of families through the whole country. Wink for September, 2018 integrates mobile application, the web portal and the application for Smart TV. On the platform more than 200 TV channels, more than 12 thousand movies and episodes of series and also the maximum set of additional services – from a pause and rewind before "Parent control" are already provided.

One more direction in an ecosystem – online education. The company started the Rostelecom Lyceum platform which problem to make additional school education qualitative, safe and available. On the platform specially selected content is provided. The personal curator will help to select the program of development of the child and will answer any questions of parents. In a personal account of service it is possible to trace the lesson schedule and progress of the pupil.

In a tariff line for convenience of the choice service packages and rates are called proceeding from needs of family – "For the Internet", "For tranquility", "For impressions", "For everything", by Game.

On October 1, 2018 Rostelecom starts the updated platform for entrepreneurs "Be in plus". It allows to receive quickly the high-speed Internet and mobile communication necessary for each business and also "add on" additional services, such as virtual PBX, SMS advertizing, Wi-Fi, video surveillance or TV for business.

Changes in business of the company resulted in need of updating of positioning and branding.

The updated visual style is developed in partnership with the Bootleg agencies (BBDO group) and Saffron Brand Consultants.

The first advertizing campaign in the updated corporate style starts on October 1, 2018.

Joint venture with Nokia

The Russian company "Rostelecom" and the Finnish producer of telecommunication equipment Nokia agreed to create joint venture in the field of research and development (NIOKR). Representatives of the companies signed the relevant agreement on fields of the St. Petersburg International Economic Forum (SPIEF). The president of Rostelecom Mikhail Oseevsky told about it in an interview of RBC [2].

The signature under the document as explained RBC in the press service of the Russian company, was delivered the Oseevsky and senior vice president of Nokia company Markus Borkhert.

Rostelecom in joint venture as Oseevsky explained RBC, will have a controlling stake. "We are going to release here, in Russia, the most modern telecommunication equipment. Really, technologies change very quickly, and to us to take some large-scale steps forward, cooperation with leaders is necessary. We consider that it will give us serious advantages, will reduce time which is required to us to catch up the leading countries" — he said.

Readiness of both companies k to long-term cooperation" is enshrined in the memorandum, according to the message of the press service, ". The main objective of the joint venture in Rostelecom called "creation of a portfolio of the Russian technological solutions combining developments of domestic technology startups and solutions" the Finnish producer. Besides, the joint venture as added in the press service, "is urged to become a basis for formation of the Russian supplier of the advanced network technologies and cloud solutions".

At the enterprise as Oseevsky explained, routers and switches will be made. "First of all the software [will be made], in the second is already "iron" — the president of Rostelecom added. Read more here.

Solar Security purchase

In May, 2018 Rostelecom announced acquisition of 100% of Solar Security company. Transaction amount was 1.5 billion rubles. Read more here.

Reduction of 25 thousand employees

In March, 2018 it became known of dismissal of 25.2 thousand staff of Rostelecom for three previous years. The company reduces the staff within transformation from the classical operator of fixed connection in provider of digital services. 

According to Kommersant with reference to annual accounts of Rostelecom, by the end of 2017 the number of staff of the operator made 133.7 thousand people that is 8.8 thousand less, than the previous year. By the end of 2014 in the company 158.8  thousand employees worked. In 2015 their number was reduced by 5.6% to 149.9  thousand. In 2016 another 4.9% dismissed, the state decreased up to 142.5  thousand human. In 2017 rates of reductions increased up to 6.2%.

Rostelecom dismissed 25 thousand people in the course of transition to digital services
Rostelecom dismissed 25 thousand people in the course of transition to digital services

Earlier in Rostelecom were going to reduce quantity of working positions to 110-130 thousand by 2020. Thus, the company is going to reduce  14–24 thousand more human. The chief financial officer of Rostelecom Kaj-Uwe Melchorn reported to the edition that the rate of reduction of staff in absolute digits will decrease.

With transition to digit there will be both partial dismissals, and hiring of employees with new digital-competences. We also promote projects of retraining, these are rather big investments into personnel development. We give to employees the chance to study digital skills — he noted.

The chairman of labor union of workers of communication of Russia Anatoly Nazeykin noticed that Rostelecom works on optimization long ago that "make the company compact", dismissing or bringing employees to outsourcing. He noted that so far information on plans of reduction of the staff of the operator for 23.7 thousand people by 2020 did not come to labor union. Nazeykin considers such plan "serious reduction" and is ready to begin negotiations with Rostelecom for  "the solution of fate of each laid-off employee".[3]

The choice Rostelecom the only supplier of cloud office services for authorities

In February, 2018 it became known of plans of the Russian government to appoint Rostelecom by the only contractor of the project on providing domestic office software to authorities as cloud (SaaS) service. Till March 15 of the Ministry of Telecom and Mass Communications together with the interested federal executive authorities should prepare and provide to the government the relevant proposals, said in the minutes of the government commission on use of information technologies for improvement of quality of life and conditions of conducting business activity. Read more here.

Information on Solar Security purchase

In February, 2018 it became known of plans Rostelecom to purchase Solar Security. The companies reached the preliminary agreement, after approval of parts consideration of the transaction will be taken out on Board of Directors of Rostelecom, RBC with reference to the sources reports. Read more here.

Rostelecom buys OMP

In February, 2018 it became known of plans of Rostelecom for acquisition of "Open Mobile Platform" (OMP). The purpose of the transaction of the companies is called the rate on import substitution. Read more here.

The agreement with "Russoft" for the purpose of import substitution solving of tasks

On January 26, 2018 the Macroregional branch "Severo-Zapad" of Rostelecom and non-profit partnership of software developers "Russoft" signed the agreement on cooperation. Signatures under the document delivered the vice president – the director of macroregional branch "Severo-Zapad" of Rostelecom Andrey Balatsenko and the president of NP Roussoft Valentin Makarov.

The purpose of the signed agreement is program implementation of the innovative development of Rostelecom and also joint development and deployment of domestic technologies and solving of tasks of import substitution till 2020 and further.

Development of cooperation by implementation of joint projects, the organizations of seminars and conferences, exchange of the ideas, information, experience and also coordination regarding new product development, solving of tasks of import substitution and implementation of the innovative technologies will become result of the transaction.

Both parties are interested in partnership for creation of perspective solutions and provision of services in the most competitive IT sectors, such as: artificial intelligence, machine learning, quantum technologies, multimodal biometric identification of the person, work with Big Data and so forth.


Property sale for 4.4 billion rubles

The Rostelecom company at the end of December, 2017 summed up the results of optimization of a real estate portfolio. In 2017 the operator refused use about 1084 objects which support required considerable operating costs and was not of commercial interest. As a result by the company it was sold to the real estate for the total amount of 4.4 billion rubles. The general size of the areas of Rostelecom was reduced by 3.3%.

The sold objects are located in different regions of the country, including both liquid markets of the large regional centers, and territories with limited demand for the real estate.

Rostelecom leases about 717 thousand sq.m of the areas. In particular, the operator signed with X5 Retail Group lease agreements of more than 48 thousand sq.m in 73 cities of Russia. Besides, the company expanded cooperation with Sberbank within development of subfund for redevelopment and management of a commercial real estate in the form of joint venture, having increased its authorized capital to 8.8 billion rubles. The capital is increased for the purpose of acquisition at Rostelecom for 4.8 billion rubles 22 additional real estate with a total area over 139 thousand sq.m in Moscow, the Moscow region and St. Petersburg.

As of the end of December, 2017, 665 thousand sq.m of the additional areas are estimated and offered for sale for the amount about 6.8 billion rubles[4]

In addition to increase in income, the program provides decrease in operating costs. All this will promote improvement of an indicator of OIBDA and providing additional opportunities for building of a cash flow and ensuring joint-stock profitability — the vice president, the administrative director of Rostelecom Dmitry Kurakin noted.

Obtaining license of FSTEC for "services in information security monitoring of means and systems of informatization"

On December 20, 2017 it became known of obtaining by Rostelecom company the license of Federal Service for Technical and Export Control of Russia (FSTEC) for a type of activity on technical confidential information protection – "services in information security monitoring of means and systems of informatization".

The license will allow Rostelecom to provide to corporate clients services in the field of cybersecurity according to requirements of the legislation for licensing of separate types of activity which became effective in 2017.

On the basis of the license Rostelecom can render all range of services information to security:

  • remote and round-the-clock monitoring,
  • information security management
  • ensuring protection of the client against cyberthreats in real time (24х7) based on Security Operation Center (SOC).

The service of information security monitoring of means and systems of informatization will include collecting of events of cybersecurity from the different systems of the client. Data will come to SOC of Rostelecom via secure channels of communication and to be processed - both automatically, and manually by analysts of SOC. The detailed analysis will allow to obtain the complete information about network condition of the client and to timely select significant threats from an event stream and to prevent them.

Agreement with MegaFon on joint development of 5G network

Telecommunication companies "MegaFon" and "Rostelecom" in November, 2017 signed the agreement on cooperation in the field of development of networks of standard 5G. By calculation of the companies, it will allow to reduce construction costs of such networks. Within cooperation MegaFon and Rostelecom intend to develop optimal scenarios of implementation of networks of fifth generation on the basis of the international experience taking into account features of the Russian mobile communications market. In more detail here.

Rostelecom announced plans to sell the Central telegraph

Rostelecom intends to offer for sale the building of the Central telegraph on Tverskaya Street in Moscow. The head of the telecom operator Mikhail Oseevsky told about it in an interview of RIA Novosti. Let's remind, the historical building is an object of cultural heritage of regional value.

"We with other shareholders already agreed upon the Central telegraph and made the decision that we will bring technology equipment out of the building. Over time we will separate the company into two directions — operational and real estate holding. Also we will decide on the future of this building" — Oseevsky noted.
Potential buyers of an object already are, he added. "To us a number of large players at whom is vision of what with it can conceptually be made came. Among the heard offers — creation of a modern multifunction complex which will include both trade zones, and hotels, and apartments, and restaurants" — the head of Rostelecom told. Specific terms of sale of the Central telegraph, according to him, are not determined yet.

So far in this building is also located [[Ministry of Telecom and Mass Communications Russia]]. However in media messages that the ministry together with two other federal will move to MMDTs "Moscow-City" already appeared. AHML began preparation for the redemption for these purposes of 75 thousand sq.m of office space in a tower "IQ quarter", reported at the end of August "Kommersant".

Appointment as the only communication service provider for state agencies

The Rostelecom company is selected by the only communication service provider for federal executive authorities. On October 5, 2017 the president of Rostelecom Mikhail Oseevsky said it to Vedomosti, having specified that the corresponding order is already signed. About what communication services in this case there is a speech, he at the same time did not explain.[5]

In September, 2017 there was information on mailing of letters by Rostelecom to state agencies in which the operator required to sign with it the contract as with the only service provider of fixed connection. Then it became known that since 2018 the company can become the only supplier practically all communication services for state agencies, except mobile.

Besides, there are orders given about preparation about appointment of Rostelecom as the only contractor of the project on connection of medical institutions to the Internet.

It is also necessary to note that the operator is already the only contractor on development of infrastructure [[Electronic government of Russia|the electronic government]].

Agreement with SK "Alliance" on promotion of services of insurance upon cyberthreats

Rostelecom and SK "Alliance" at the beginning of October, 2017 signed the agreement on cooperation for the purpose of implementation and promotion of services of insurance upon cyberthreats. Services are intended for clients of all levels — the state customers, the large companies and also for small and medium business.

For agreement performance of the company intend to communicate in the field of cyber security and also will create the working groups for coordination of activities on promotion of services in the field of insurance upon cyberthreats.

Damage volume from cyber attacks grows in the commercial sector every year, and for the companies of small and medium business even one successful attack can become "deadly". Considering these factors, development of mechanisms of insurance upon cyberthreats is timely and necessary measure of counteraction to crimes in the field of cybersecurity, Valery Ermakov, the vice president of Rostelecom for work with corporate and state segments considers.

After spread of viruses WannaCry and Petya we recorded increase in demand for services of insurance upon cyberthreats. Many companies which faced cyberswindlers understood that expenditure for this type of insurance more than are proved. In addition to the companies which activity is directly tied to Network insurance upon cyberrisks enjoys wide popularity among the companies which conduct activity in a production/industrial segment — where many processes are automated, and there is a risk of a break in activities for the reason of IT incidents. Banks and financial institutions also quite often purchase policies of assurance of cyberthreats as work with the large volume of personal data — Vadim Mikhnevich, the associate director of Department of insurance of financial lines of SK "Alliance" added in return.

According to SK "Alliance", world turnover of the market of insurance upon cyberrisks makes $2.5 billion. The Russian market now only is at a development stage, but interest from clients speaks about high potential of growth.

Regional operators protest against deliberate damages of communication lines by the staff of Rostelecom

In September, 2017 the press center Interfax Urals the press conference in which independent regional telecom operators from Nizhny Tagil, Chelyabinsk and Novocherkassk participated took place. All audience, anyway, suffers from deliberate damages of the communication lines belonging to them performed by the staff of Rostelecom. The scandal which initially had character of the local conflict grew to the all-federal trend directly menacing to the fact of existence of independent operators. The being present heads of the regional companies from the Rostov, Chelyabinsk and Sverdlovsk region consider such methods of conducting competitive struggle using illegal methods, inadmissible and urge colleagues not to hush up the similar facts, and to address to law enforcement agencies and media.

Regional operators protest against Rostelecom
Regional operators protest against Rostelecom

In particular, it is about Nizhniy Tagil Iron and Steel Works and scientific and production corporation "Ural Carriage-Building Plant" and also communication lines FSB, FSO and a number of civil objects, including the reserve communication line of Ambulance. The police of Nizhny Tagil bring 4 criminal cases under the Article 215 of the Criminal Code of the Russian Federation. Also the management "Tagil of the Telecom" FSB Russia appealed in to check actions of Rostelecom regarding presence at their structure of signs of Article 281 of the Criminal Code of the Russian Federation – Diversion.

Use by Tagil Telecom operator of the cable sewerage which is once privatized by Rostelecom company served as the cause of conflict. Representatives of Rostelecom do not agree with the lease cost determined by Arbitration court of Sverdlovsk region and unilaterally require to lift it neither more – nor less - by 8 times, without having on that any legal basis. At the same time all negotiations on this occasion, anyway, pass into the plane of illegal actions – intended damage of communication lines and threats to the regional operator.

As it became clear at a press conference, a situation in Nizhny Tagil not single. During intra-branch investigation the facts of illegal acts of similar character concerning independent telecom operators in other regions of Russia – the Rostov, Leningrad and Chelyabinsk regions were opened. As the representatives of injured operators who were present at a press conference say, in all cases the facts of coercion of the companies to the transaction on disadvantageous conditions and deliberate damage of communication lines – in case of refusal took place. Besides, in most cases, for example – in Chelyabinsk, representatives of Rostelecom did not provide to the opponents any documents confirming the property right to the leased objects – cable sewerages or land columns support.

According to participants of a press conference the situation threatens not only to business of independent operators, but also public security in general. Socially unprotected segments of the population suffer from actions of the monopolist. In particular, at damage of communication lines of the operator of cable television to Novocherkassk elderly and needy clients were offered to pass to service into Rostelecom whose rates exceed rates of the independent operator by 6-8 times. In Chelyabinsk residents of the remote settlements and the private sector suffer. Not better a situation and in Nizhny Tagil – in addition to the city-forming enterprises such services as Ambulance suffered...

The Moscow lawyer, the expert in problems of telecommunication operators Dmitry Galushko, during the press conference unambiguously said that "dismantle communication lines without court's decision is prohibited by the law". He gave to regional operators a number of advice how to behave in the above described situation: "When dismantling - to complain to law enforcement agencies. At explicit exceeding of the price of lease - FULL FACE Russia to dispute a price fixation technique. In claims from Rostelecom in court to file a petition for conducting examination regarding determination of the price of service of providing the place in the sewerage".

The Board of Directors recommended to pay 15 billion rubles of dividends

The Board of Directors of Rostelecom approved the agenda of the annual general shareholder meeting in May, 2017 and made recommendations about dividends at the end of 2016. At shareholder meeting it is recommended to direct to dividend payout on ordinary and preferred shares in the total amount of 15 billion rubles that makes 113% of a free cash flow and 122% of the net profit of the company.

Dividends are offered to be paid on preferred shares of A type – in the amount of 5.39 rubles on one action, on ordinary shares – in the amount of 5.39 rubles on one action.

The Board of Directors also defined dates of drawing up the list of the persons having the participation right in general shareholder meeting and to receipt of dividends – on May 25 and on July 7, 2017 respectively. General meeting of shareholders of the company will take place on June 19.

"The level of dividends offered by Board of Directors on a statement to general shareholder meeting corresponds to really achieved results of the company in reporting period. This year the company suggests to increase significantly a share of the distributed free cash flow, showing thereby commitment to accomplishment of the basic principles of our dividend policy, namely to direct our shareholder more than 3/4 free cash flows, but anyway not less than 45 billion rubles for 3 years, at the same time without increasing a debt load. We consider that the offered level of 5.39 rubles on an action allows to save high dividend yield and in general is within the policy operating in the company", - the president of Rostelecom Mikhail Oseevsky noted.

Rostelecom looks for the place in digital economy

Rostelecom prepared and in the nearest future is going to provide to the government the position that the company can do in response to the tasks of creation of digital economy and information society set by the state in Russia. The director of the Center of strategic innovations of Rostelecom Boris Glazkov told about this TAdviser in May, 2016. In more detail - in article according to the link.

Rostelecom took a revenge: By NVision it is fined 64 million

NVision group should pay to Rostelecom over p60 one million as a penalty for delay of supply of equipment. It follows from the resolution of Arbitration court of the North Caucasian Federal District which decided to leave on May 3, 2017 the decision of Arbitration court of Krasnodar Krai of November 10, 2016 and the resolution of the Fifteenth arbitration Court of Appeal of January 26, 2017 without change, and the writ of appeal of NVision — without satisfaction[6].

Within this prolonged trial courts considered both the claim of Rostelecom to the contractor, and the counter action of NVision — with requirements about collecting from telecom operator of a penalty for delay in payment of the supplied equipment. The amount of the first of them after amendments was one million p68.1, the second (also after amendments) — one million p4.2. "As offset to collect from JSC NVision Group for benefit of PJSC Rostelecom p64.1 one million penalty" — the final judgment says.

In public documents of court there is no specific description of a subject of contractual relations of two organizations. There is only an instruction on the fact that delivery of NVision and rendering certain services to it were stated Rostelecom of the unnamed equipment in several tens agreements with different completion dates. On the website of state procurements it is unambiguous it was not succeeded to identify the problem contract of edition.

NVision selects at Rostelecom debts for the 112 project

As learned to CNews, Rostelecom should pay NVision Group of p32.8 of one million — debt on the agreement on p18.2 of one million and a penalty in the amount of one million p14.6. Today, on April 3, 2017. The fifteenth arbitration Court of Appeal of Rostov-on-Don upheld the decision of Arbitration court of Krasnodar Krai on collecting the above-mentioned amount made earlier, and the complaint of the operator — without satisfaction[7].

Trials concerned the contract signed on December 23, 2013 between Rostelecom and NVision Group within which the contractor of the operator had to perform automation of objects of the first stage of a system of a call of the emergency operational services by uniform number "112" based on services of Krasnodar Krai on duty and dispatching, including installation and a commissioning of the equipment and also assignment of rights on use of software.

Follows from materials of court that NVision fulfilled the obligations in full — carried out works on p126.1 of one million and delivered software on one thousand p425. However Rostelecom paid the companies only of one million p108.3, as caused the claim which gave NVision on December 1, 2016.

Mikhail Oseevsky is the new head of the company

On March 1, 2017 the prime minister Dmitry Medvedev signed the government directive on appointment as the president of state-controlled Rostelecom of Mikhail Oseevsky who held a post of the deputy head of the State Bank of VTB before. Oseevsky headed the operator instead of Sergey Kalugin. Read more here.


Purchases of Rostelecom at small and medium business in 2016 made 81.7 billion rubles

On February 16, 2017 the press service of Rostelecom announced financial results of small and medium business in 2016. Purchases of Rostelecom at small and medium business in 2016 made 81.7 billion rubles.

Purchasing amount on the signed agreements with small and medium-sized businesses (MSP) in 2016 was 81.7 billion rubles, the volume of agreements on special purchases at subjects of MSP was 24.2 billion rubles of them.

At the end of 2016 the share of agreements with partners of MSP made 59%, and a share of agreements on special purchases at MSP - 17.5%. Special purchases are carried out only among subjects of MSP and represent a limited circle of purchases, by certain codes in OKPD2 list (OK 034-2014 (KPES 2008) "The All-Russian Product Classifier by types of economic activity"). Rostelecom consistently increases transparency of purchases and the circle of participants of purchases including using the small and medium enterprises expands. In particular, in 2016 Rostelecom reduced the number of the provided documents as a part of the purchasing request.

Implementation of initiatives of improvement of procurement procedures allowed Rostelecom to raise significantly share of participation of subjects of MSP in purchases of the company and also to improve financial performance of purchases. In particular, the share of purchases at small and medium business in which 4 and more companies took part made 64%. The average amount of economy on purchases for small and medium business was 28% of the starting price.

"Thereby, we facilitated the procedure of preparation of the request for procurement participants. In the company "hot line" on purchases works, an operational feedback is organized. The information section on the website of Rostelecom devoted to features of purchases for small and medium business and also to support measures which appear to such enterprises is created".

Evgeny Gaydukov, purchasing director of Rostelecom

Saving 40.2 billion rub on purchases

On February 13, 2017 the press service of Rostelecom announced financial results on purchases of the company in 2016. According to these data, the company saved 40.2 billion rubles from the amount of the starting (maximum) prices of the agreements put up for sale at the total amount of purchases of 208 billion rubles and average percent of economy on competitive purchases - 25.2%.

So considerable performance indicators of purchases of the company in 2016 are connected with a number of factors. First, it is the general macroeconomic changes which have an impact and on the industry of telecommunications, moderate stagnation of the market which, in turn, significantly strengthened competitive environment. Secondly, last year Rostelecom managed to implement large strategic projects. It is, first of all, the general unification and standardization of the subscriber equipment (ShPD, IPTV) which within all company, in addition to economic effect and positive influence on working capital allowed to provide qualitative operational effect. And thirdly, within processes on optimization of purchasing function of Rostelecom the purchasing policy of the company with balance of centralization and decentralization of functions, consecutive distribution of powers on the level of regional divisions is implemented. There is a special wish to note successful project implementation on accomplishment of the installation and construction works (ICW) for construction of communication networks of broadband access for segments of B2C, B2B and so forth. High economic effect on such purchases was reached due to redistribution of purchases from large contract organizations to purchases of SMR at the companies "on places" in regions.

Evgeny Gaydukov, purchasing director of PJSC Rostelecom

From the middle of 2013 in Rostelecom the program of optimization of purchasing processes which purpose - cost reduction of the company due to market procurement control is adopted. The measures lifting the excess limits and barriers to bidders increasing transparency of purchases, leading to growth of healthy competition at biddings are developed and implemented. All contracts include "the anti-corruption clause", "the ethical line" works.

Rostelecom intends to attract 30 billion rubles at Sberbank

Rostelecom and Sberbank are going to sign the agreement on opening of a credit line with the maximum threshold in 30 billion rubles. Their operator is going to direct to operating and investment activities, a part of means will also be used for repayment of other payment obligations[8].

It is noted that the parties still should approve an exact interest rate, but it will make no more than 15% per annum.

According to public data, for the end of the first quarter 2016 the total amount of a debt of Rostelecom is 176.5 billion rubles where 77% make credit obligations to different structures, 18% fall on bonds, 5% - on commodity loans, and the others - on other types of loans. For today Sberbank and VTB act as the largest creditors of Rostelecom (no more than 10% of the general size of a debt are the share of each of them).

In May, 2016 it was announced that Rostelecom is also going to sign credit agreements with VTB, Rosselkhozbank, Gazprombank and Vnesheconombank for the total extreme amount of 510 billion rubles.

Short-term lending from Alfa Bank

PJSC Rostelecom will sign the general agreement about short-term lending with JSC Alfa-Bank. A credit limit according to the general agreement - 2 billion rubles. The agreement of the company is signed for three years[9].

Information on purchase of Rostelecom at the only supplier on the right of the conclusion of the general agreement about general terms of performing transactions of short-term lending is published on the portal of state procurements.

"The interest rate for each credit is approved at the conclusion of each credit deal, at the same time the interest rate for use of any of the loans granted to JSC Alfa-Bank within the general agreement cannot exceed the base rate increased by 0.5 annual interest rates", the document says.

According to technical specifications, the credit limit according to the general agreement will make 2 billion rubles, and the duration of the agreement - three years from signature date.

Rostelecom in general actively raises borrowing facilities. So, at the beginning of May, 2015 the operator attracted the loan in the form of an overdraft at Sberbank for a period of one year and 2.3 billion rubles in size, with a possibility of expansion at most to 10 billion rubles. Rostelecom was going to spend these funds for investment and operating expenses.

Arrangements with Huawei

On June 25, 2016 Rostelecom of Huawei was announced ratification of the agreement on cooperation according to which the parties will conduct joint developments and implementation of the innovative solutions in the field of IT and telecommunications in Russia.

Procedure of agreement signature, (2016)
Procedure of agreement signature, (2016)

It agrees to the document signed between Huawei and Rostelecom, cooperation extends to areas:

The purpose of cooperation of the company position implementation of the advanced and competitive solutions in networks of the operator, emergence in the market of available modern communication services.

In 2014 the companies signed the agreement on strategic cooperation, in Russia a number of large projects, including the most extended in Europe an optical network of data transmission is already implemented. For June, 2016 the companies conduct works on laying of underwater network of Kamchatka-Sakhalin-Magadan.

Основная статья: Huawei


Company takeover of Aykumen of IBS

On November 19, 2015 it became known of entry of Rostelecom into the market of solutions in the field of the analysis of data bulks (Big Data). The debut of the state operator happened thanks to purchase of a controlling interest in "Aykumen — Information Business Systems" company (Aykumen of IBS). Read more here.

Rostelecom wishes full control over Sputnik

For July 17, 2015 structures of Rostelecom control 74.99% of the project Sputnik and own the rights to the domain The cost of a share of 25% - in the course of discussion[10].

19.51% of Sputnik belong to the entrepreneur Vyacheslav Rudnikov, 5.5% — to the businessman Vasily Vasin. Information on the possible transaction became known to Kommersant from the sources close to its participants. The representative of Sputnik Dmitry Chistov confirmed the fact of discussion by the parties of the redemption, but said what specific proposal is not directed yet.

Except the domain Rostelecom owns the rights to the trademark of Sputnik. Minority shareholders of Sputnik did not know that they lost own domain. According to Rudnikov, such transaction should have been approved with founders of Ltd company, and Chistov claims - no transaction existed, according to him: the domain was issued on Sputnik by "purely technical need after a project startup".

"Rtkomm.Py purchased this domain from the former owner in the 2012th, the developer company received it in temporary management and then returned to Rostelecom" — Dmitry Chistov said.

Rostelecom became public

On June 26, 2015 the Rostelecom company changed a form of business to[11].

On June 24, 2015 in the Unified State Register of Legal Entities record about state registration of new edition of the company charter in which the new name is specified is made. A new full trade name of the company – Public joint stock company of intercity and international electric communication Rostelecom, the reduced trade name – PJSC Rostelecom.

The decision on the adoption of new edition of the charter of Rostelecom is made on June 15, 2015 at the annual general shareholder meeting at the end of 2014.

Shareholder meeting elected Sergei Ivanov, the Chief of the Russian Presidential Administration, the chairman of the board of directors of Rostelecom.

Rostelecom received 10 billion rubles for elimination of "digital inequality"

On March 16, 2015 it became known of receiving by Rostelecom operator 10.1 billion rubles in 2014 within the project of elimination of "digital inequality".

Funds are raised from the Russian Direct Investment Fund (RDIF), from the national welfare fund (NWF) and the co-investor, reported in the annual report of the company[12].

According to these data, the Russian Direct Investment Fund (RDIF) received 4.05 billion rubles from the national welfare fund (NWF) on project implementation on elimination of "digital inequality" in regions of Russia.

Liquidation of "digital inequality" – the project performed according to the public contract signed on May 13, 2014 between Federal Communications Agency and JSC Rostelecom for a period of 10 years about conditions of rendering universal communication services. According to the agreement, Rostelecom will provide data services with a speed not less than 10 Mbps of 13.6 thousand localities with population from 250 to 500 people. The company should construct about 200 thousand new fiber lines of communication. According to the forecast, the volume of financial provision of rendering universal communication services will be about 163 billion rubles in 10 years.

Rostelecom will lay off 11 thousand employees

On March 17, 2015 it became known of plans of Rostelecom operator to lay off from 8 to 11 thousand employees in 2015[13].

On categories of employees the company will be left: 15% of leadership team — about 4 thousand people, from 4 to 7 thousand which got laid off among them there is a considerable number of employees of a retirement age.

Sergey Kalugin, the CEO of Rostelecom said: "In 2015 the company is going to reduce 15% of an administrative and management personnel — about 2.5% of the total number of staff of the company".

For March 17, 2015 in the company 158 thousand work human. The operator is going to reduce their number by 5−7% a year, since 2015.

According to Kalugin, the planned reduction will help the company to increase labor productivity and to save 4.3 billion rubles in 2015. It is overall assessment of economic effect, the company connected with business process optimization, including, release of a managerial personnel reported.

Kalugin repeatedly declared strategy implementation of optimization of number of staff of the company calculated till 2018.

- We somewhere a year will reduce the number by 7−10%. Approximately the same rates we will increase the salary. This year we plan 7% a salary increase to the employees. It, of course, will concern not all, it will be carried out selectively, generally it will concern people at whom salary is below the market now — Kalugin in the spring of 2014 said.

Rostelecom in parts explained the strategy of reduction of employees in documents for the government. The company noted that [[Sberbank|Sberbank of Russia is going to make use of experience]] which for 4 years (from 2008 to 2012) laid off 10% of employees: from 257.25 thousand to 231.74 thousand.

In comparison with bank, the operator sets more ambitious task of reductions; according to the most conservative estimates, at reduction no more than 5% of personnel a year, Rostelecom is going to leave at least from 19% of employees for 4 years.

The net profit of Rostelecom in 2014 dropped by 17% to 2013 (29.48 billion rubles to 35.29 billion rubles in 2013) follows from financial statements of the company. The most marginal direction of Rostelecom — traditional telephone communication — brings less income every year. And in November, 2014 the management of Rostelecom finally was defined and confirmed at a meeting with investors that the person in 2015 will dismiss near 10tysyach.

Rostelecom lags behind on revenue indicator on one employee other Russian operators:

  • VimpelCom - 11.5 million rubles on the employee
  • MegaFon - 10.5 million rubles on the employee
  • MTS - 6.8 million rubles on the employee
  • Rostelecom — 1.96 million rubles on the employee

Rostelecom needs a soft loan in 10 billion rubles

On March 17, 2015 it became known of the request from the telecom operator Rostelecom in the amount of 10 billion rubles on the mechanism of project financing[14] for receiving soft loans].

Office "Rostelecom", 2014

Rostelecom needs project financing, including, and in the project on construction of a fiber line of communication Sakhalin - Magadan - Kamchatka.

Earlier the company announced plans at first constructions of the underwater line in the second quarter 2015. Project cost is about 3 billion rubles. The optical fiber cable should be laid on a bottom of the Sea of Okhotsk. Total length of communication lines will be about 2 thousand km., the maximum capacity of a system – 400 Gbps in each direction (with a possibility of expansion to 8 Tbit / c).

In total Rostelecom stated five-six projects for the mechanism of project financing.

For March 17, 2015 within the program of project financing three credits are approved: Tele2 on 16 billion rubles (on construction of network in Moscow) and to two poultry farms for the total amount of 13.2 billion rubles.

Parameters of investment projects for project financing are approved by the government in October, 2014. The size of the project can be no more than 20 billion rubles, a limit of loan financing within the project - 80% of its volume. On the credits the guarantee of Russia at the rate to 25% of the amount of loans is possible. Ten banks, including Sberbank and VTB participate in the program.

Changes in Board of Directors approach

On March 17, 2015 it became known of probable appointment of Sergei Ivanov, the head of AP Russian Federation, the head of Board of Directors[15].

Information on it was confirmed in media by the president's press secretary Dmitry Peskov.

According to him, during the crisis period presence of representatives of the state at Boards of Directors of the large companies significantly facilitates process of interaction and increases potential support to such structures.

Media noted if Ivanov is included into board of directors of Rostelecom, the status of state representatives will sharply be raised there: now as a part of council the official of Rosimushchestvo and the adviser to the Minister of Telecom and Mass Communications. Shareholders should elect new council at an annual meeting in the summer.

From May, 2008 to December, 2011 Ivanov worked as the Deputy Prime Minister of the Russian government and supervised, including, telecom industry. Under its management in 2009-2011 reform of Svyazinvest state holding was undertaken: seven interregional companies of communication and Dagsvyazyinform joined Rostelecom then the managing holding stopped existence.

2014: FAS opposed the idea to make Rostelecom provider for state agencies

Telecom operators and FAS opposed in July, 2014 the offer of the Ministry of Telecom and Mass Communications to make Rostelecom the only Internet service provider for state agencies. The appropriate question was brought up in the middle of July, 2014 at a meeting of Federal Antimonopoly Service within discussion of creation of the single network of data transmission (SNDT). In 2015-2016[16] is going to connect all federal executive authorities to this network[17].

"In the Ministry of Telecom and Mass Communications consider that the status of the only supplier will simplify life of state agencies which feel discomfort upon transition from one to other operator. Also it will allow to save up to 10%, or about 2.4 billion rubles of budgetary funds, during 2015-2017 — when installing a rate it is offered to take as a basis the prices of 2013 minus 10%. At last, it will increase information security", - explained the reasons which induced to submit the Ministry of Telecom and Mass Communications for interdepartmental discussion such offer interlocutors of the Kommersant edition.

Also they reported that representatives FAS opposed the idea of the Ministry of Telecom and Mass Communications, having reasoned it with the fact that "from under market regulation it is offered to display the whole segment of the law "About State Procurements". Besides, FAS considers that the cost of separate government contracts can be reduced by 30-40% thanks to the competition of operators, and the information security will not suffer if there will be a system of requirements and standards which all operators will be obliged to perform.

Also the operator of MTS adheres to the same point of view, stating that on condition of carrying out state procurements on the principles of the competition it is possible to lower a total sum of the contract for 15-70%.

In turn in MegaFon pay attention not only to healthy competition, but also to the level of information security which, according to the operator, can be guaranteed only when using networks of several providers providing reservation of all data.

Meanwhile, in the Ministry of Telecom and Mass Communications said that do not see violation of the principles of the competition as connection to ESPD will be voluntary: each department if desired will be able to hold a competition and to select other operator. The representative of the Ministry of Telecom and Mass Communications also reported that Rostelecom is already the only contractor on an e-government system, and ESPD — a part of this system therefore "there is no sense to create a parallel data network". Rostelecom reported that are in case of need ready to get to work on project implementation.


The Accounts Chamber checks expenses on web broadcast of elections

On May 22, 2013 the Accounts Chamber reported on results of check of justification of expenses of Rostelecom when rendering services in providing communication channels for the organization of broadcast of presidential elections on the Internet in March, 2012.

12.97 billion rubles were paid to Rostelecom for the rendered services from the federal budget that made 71.5% of actual costs of the operator for the organization of web broadcast of elections. This amount on volume is comparable to the costs of Rostelecom for a doumoshchneniye of the infrastructure which made 12.41 billion rubles.

The Accounts Chamber notes that the possibility of video broadcasting from the most part of polling precincts - more than 46% - was provided by creation new and increases in power of the available communication channels. At the same time the least costly was the method of lease of communication channels at alternative operators which was under-exploited at works "actively", says department.

Rostelecom noted in a conversation with TAdviser that attracted to participation in this project a large number of partners and subcontractors, first of all, where the company had no branch - Ingushetia, Chechnya, Tatarstan, Bashkortostan, the Republic of Tyva, Chukotka Autonomous Okrug. In these regions infrastructure of local telecom operators was used. And in Moscow, for example, "the last miles" to UIK were organized with attraction of resources of MGTS.

The Accounts Chamber also notes that the cost of services of Rostelecom formed on the basis of the technique approved by the company. The algorithm of calculation of a basic rate provided in it is not approved by authorized federal bodies and has a number of the assumptions allowing Rostelecom to apply different methods and the sequence of settlement actions. According to department, it demonstrates subjective estimated approach to calculation of cost of services.

"At the same time the list of the cost items carried on the specified services is not determined by a technique that gives the chance of inclusion them in the cost of services with violation of the principle of functional accessory", - say in Accounts Chamber.

Accession of Svyazinvest

In June, 2013 at an extraordinary meeting of shareholders of Rostelecom accession to the operator of Svyazinvest holding was approved. 98% of the owners of 62% of stocks of the company who were present at a meeting voted for it, and accession will become the last stage in reform of holding.

Accession of Svyazinvest to Rostelecom allows to eliminate crossholding with securities. At the time of consolidation the state owns 75% minus one stock of Svyazinvest, and the remained packet belongs to Rostelecom.

It was reported that the share of Svyazinvest in Rostelecom will be extinguished, and on each 14 stocks of Svyazinvest it will be issued on one stock of Rostelecom. At the same time the share which will be received as a result by the operator will also be extinguished. At the time of consolidation Svyazinvest owns in Rostelecom of 45%, another 10% of stocks of the operator belong to the state directly and through VEB.

After reform the share of the state in Rostelecom will remain control. By calculations of CNews, it will make 51.2%. Having absorbed Svyazinvest, Rostelecom will receive control over a number of assets which were not attached to it, in particular, Central Telegraph, Chukotkasvyazyinform and Ingushelektrosvyaz earlier.

Possible redemption of stocks of minority shareholders

According to the join-stock companies law, the shareholders who were not taking part in vote on the issue of reorganization of the company or voted against will be able to demand the redemption of their actions. Earlier the Board of Directors of Rostelecom set the price of the redemption from discordant shareholders in the amount of 136 rub for one ordinary share and 95 rub for one exclusive that is much higher than market quotations (87 rub and 70 rub respectively).

However, according to the same law, the company can direct to redemption of stocks no more than 10% of net assets value, i.e. no more than 30 billion rubles. If all shareholders who did not support reorganization demand the redemption of their actions, then on it about 170 billion rubles will have to leave. In case of exceeding of a limit Rostelecom will redeem shares in proportion to a limit ratio to the total cost of papers of discordant shareholders.

So if all discordant shareholders want to get rid of the actions, then Rostelecom, according to the estimates of CNews, will be able to satisfy only 18% of the total number of requests. Also the largest minority shareholder of Rostelecom - Marshall Capital Partners fund (about 10% own) did not take part in vote If he shows the actions to the redemption, then will be able to earn not less than 8.2 billion rubles.

Rostelecom began search of new market niches

At the beginning of August, 2013 Rostelecom announced creation of new division - department of venture projects which will look for opportunities for an exit of the company on "the new fast-growing markets and in not covered niches". The company explains that it is going to be done by expansion of a product line of the company due to perspective services in areas, adjacent for telecom business.

Rostelecom told TAdviser that at the current stage the company considers a set of the directions of development of such services, first of all, in a B2C-segment directed to additional monetization of the existing subscriber base. According to the representative of the company, the first new services Rostelecom expects to bring in areas, adjacent for telecom business, on the market "in the next few years".

The new department at the same time is going not only to develop independently services, but also to attract to it the external partners having the interesting ideas and solutions add to the companies. Rather possible forms of cooperation with partners the representative of Rostelecom in a conversation with TAdviser selected, first of all, development outsourcing and also the projects organized on model of separation of profit (revenue share).

"Society and business impose all new requirements to solutions in the field of information technologies and communications. For this reason in Rostelecom the division which will concentrate on the most advanced trends is created and to put base for future growth of the company as universal service provider", - the vice president of RostelecomAlexey Basov who will supervise work of new department notes.

It should be noted that soon after replacement of the leadership of Rostelecom in 2013 the companies on the need of search of a new niche in the market directly indicated in the government. So, during the enlarged meeting of board of the Ministry of Telecom and Mass Communications at the end of 2012 which took place in May, 2013,the Deputy Prime Minister Arkady Dvorkovich noted that replacement of the leadership of Rostelecom opened a large number of problems which appeared more, than achievements.

"It means need of hard work according to the solution of the saved-up problems, increase in efficiency, decrease in inefficient costs and increase in financial stability, finding of a niche in new economic, market conditions without special state privileges", - Dvorkovich told about it.

2012: Upgrade of DPCs in Moscow and Noginsk

Rostelecom placed request for proposals electronically on right to contract of supply of equipment of storage systems of DPC in Moscow and Noginsk.

The press service of Rostelecom of TAdviser reported that it is planned upgrade of the equipment.

According to documentation, the maximum cost of the offer is 88 million rubles. A competition will be is held on lowering. Requests are accepted from August 20 to August 27, the declaration of results - no later than September 5, 2012. Supply of equipment should be made until the end of the year.

Within the contract it is going to buy hard drives of different volumes, the software, hardware and program components, expansion units, storage systems, modules of management and also technical support.

The head of data processing centers of CROC company Ruslan Zayedinov, in a conversation with the correspondent of TAdviser reported that you should not expect significant reduction in cost of the contract.

"The matter is that the customer very well represents the estimated cost of the purchased equipment since it is about upgrade of the existing system, but not creation new (from 7 purchased positions, 5 upgrade)", - he told. According to Zayedinov, upgrade of the existing system, is connected with the increased needs of the customer on the capacity and functionality.


Agreement with Yota on sharing of 4G networks

On December 2, 2011 it became known that Rostelecom and Yota signed the agreement on joint development and use of wireless networks of communication of fourth generation (4G). Signatures under the agreement were appended by the president of Rostelecom Alexander Provotorov and the director of Yota Denis Sverdlov[18].

Within the signed agreement Yota grants to Rostelecom the right to use wireless links of the network and to render to clients communication services using the MVNO mechanism (Mobile Virtual Network Operator – the virtual cellular operator) and also to use the platforms which are available for Yota for placement of telecommunication equipment and wire channels of communication to these platforms.

Rostelecom, in turn, grants to Yota the right on use of wire channels of communication to platforms of placement of telecommunication equipment, channels of accession to the Internet, trunk communication channels between the cities which are available for Rostelecom of platforms for placement of telecommunication equipment and the data processing centers.

According to the president of Rostelecom Alexander Provotorov, "joint development and use of infrastructure will allow the companies to reduce considerably terms of construction of 4G networks, to lower at the same time capital costs and also it is essential to reduce operating costs. All this will make possible not only in the shortest possible time to begin provision of services of 4G networks, but also to increase the number of residents of Russia who will be able to use them".

Accession seven MRK of Svyazinvest

JSC Rostelecom (RTS and MICEX: RTKM, RTKMP; OTCQX: ROSYY) announced that on April 1, 2011 JSC CenterTelecom, JSC Sibirtelecom, JSC Dalsvyaz, JSC Uralsvyazinform, JSC VolgaTelecom, JSC SZT, JSC YuTK and JSC Dagsvyazyinform (further – "the attached companies") were excluded from the Unified State Register of Legal Entities in connection with accession to JSC Rostelecom which became the legal successor by all rights and obligations of these companies. Thus, from the legal point of view, process of creation based on JSC Rostelecom of the united company is complete.

Its transformation in the universal telecom operator capable to compete with operators of "the big three" was the purpose of consolidation of MRK and Rostelecom. The first VimpelCom thought of creation of the federal universal operator — in 2008 he purchased the alternative fixed Golden Telecom operator and Corbina Telecom Internet service provider. Followed its example MTS which in 2009 redeemed from maternal AFK "Sistema" a controlling stake "Comstar-OTS", and "Megafon" in 2010 purchased the trunk operator "Synterra" (together with the St. Petersburg fixed operator "[[Implementation Microsoft Dynamics AX in \"the PeterStar \"]]").

In accordance with the legislation of the Russian Federation securities of the attached companies should be converted into the corresponding securities of JSC Rostelecom which are specially issued for this purpose (further – "securities of new releases"). Trading in securities of the attached companies on marketplaces were suspended since March 28, 2011 up to date of reorganization then biddings will be stopped finally. The decision on creation based on JSC Rostelecom of the united company by accession of JSC CenterTelecom, JSC Sibirtelecom, JSC Dalsvyaz, JSC Uralsvyazinform, JSC VolgaTelecom, JSC SZT, JSC YuTK and JSC Dagsvyazyinform was accepted at Annual general shareholder meeting JSC Rostelecom on June 26, 2010.

Shareholders of JSC VolgaTelecom made the decision on reorganization of the company in the form of accession to JSC Rostelecom on annual meeting of shareholders on June 21, 2010. Since April 1, 2011 after accession to JSC Rostelecom JSC VolgaTelecom will continue the work as macroregional branch "Rostelecom — Volga" of the united company.

The DIA looks for options of sale of 7.4% of stocks of Rostelecom

The DIA owning 7.4% of stocks of Rostelecom began to consider different options of sale of the packet. At the same time possible sale of shares to third-party investors would not correspond to the interests of the state aiming to retain control over Rostelecom. After consolidation with MRK the share of Svyazinvest in Rostelecom decreased from 51% to 43% of voting shares, and the state retains control over the operator only thanks to shares of VEB and DIA. As a result found a way out supervising activity of the Ministry of Finance agency, having suggested DIA to transfer actually non-paid these stocks to the state.

In August, 2011 it became known that the Ministry of Finance drafted the bill of making changes in 2008 adopted after crisis. Law "About Additional Measures for Strengthening of Banking System Stability during the Period till December 31, 2011". The document assumes an opportunity for the Deposit Insurance Agency state corporation (DIA) to transfer to the state property which the agency received during process of improvement of banks.

Cession of property should be performed at the purchase price on account of reduction of a property contribution of the state to the capital of DIA. According to the explanatory note to the bill, the purpose of the document is to give an opportunity to DIA to transfer to the state the stocks of Rostelecom owned by it that should provide observance of interests of the state during reform of holding of Svyazinvest.

The director of Institute of national strategy Stanislav Belkovsky explains the aspiration of the Ministry of Finance to resolve this problem communications of the former shareholders of KIT Finance with the head of the ministry Alexey Kudrin. "In 2008-09 Kudrin's task was to save KIT Finance from bankruptcy at the expense of the state therefore the DIA concluded the unprofitable transaction on purchase of shares of Rostelecom, - Belkovsky says. - Now Kudrin needs to output this transaction from under criticism".

The bill which is created specially under one transaction can not pass, the CEO of the analytical agency of Rustelekom Yury Bryukvin warns. "It is obvious that if for one transaction the exception of the legislation becomes, there will be a great number of persons interested to achieve the same exceptions", - the analyst assumes.


On September 14, 2011 it became known that teasers with a blue-orange logo appeared on streets of St. Petersburg and other large cities, numerous entries in blogs demonstrate and in Facebook[19]. Their authors are convinced that teasers were placed by Rostelecom which promised to provide the other day the new corporate style. Stylized "р" causes in authors of blogs of association with an ear or a worm.

It is a new logo of Rostelecom, confirmed to Vedomosti a source among shareholders of the company and people, close to Board of Directors of Rostelecom. To the staff of Rostelecom two weeks as business cards of an old sample prohibited to order, adds one of them. Brands of seven branches of Rostelecom (the former interregional companies "North-West Telecom", "CenterTelecom", the Southern telecommunication company, VolgaTelecom, Uralsvyazinform, Sibirtelecom and Dalsvyaz) will be replaced until the end of 2011, tells a source in Rostelecom.

The new platform of a brand was developed by TNC.Brands.Ads entering into the Leo Burnett group, the representative of group Yulia Manko says. And Leo Burnett prepared an advertizing campaign on promotion of a new brand. The project budget of Manko does not open. These are the "reasonable means" long ago included in the budget of Rostelecom for 2011, tells the source close to its Board of Directors.

Rostelecom was guided by the expense level which is not exceeding costs for rebranding of MTS and VimpelCom explains a source in the company. And VimpelCom in 2005, and MTS in 2006 used services of the Wolff Ollins agency. Cost VimpelCom of service of this company (replacement of a bee by black-yellow bands) $2 million, to telecommunication companies of AFK "Sistema" (MTS, Comstar and others passed to an end-to-end "egg" brand) — approximately $4 million. In addition to services of the creative agency "Rostelecom" will pay also a marketing campaign, but these expenses will be even less, than at Euroset (since March, 2011 began to recolour salons and to change plates with writing of the company name), tells a source in Rostelecom. Can spend up to 4 billion rubles for restyling of a little more than 4000 Euroset cellular shops, told a source, close to the retailer. At Rostelecom, according to its own data, now more than 2500 offices of service.

In St. Petersburg, according to preliminary data "Espar-analitik", Rostelecom became in September, 2011 one of leaders of outdoor advertizing, having placed 100-200 parties on boards (part of them 3 × 6 m in size, a part — smaller "city format"). In general this advertizing campaign can be estimated at 3 million rubles, the representative of "Espar-analitik" considers. According to the top manager of one of operators of outdoor advertizing, the board in the center of St. Petersburg can cost up to $3000, and on the outskirts — $1000.

Federal advertizing campaign lasting two months costs about $2 million — it shows experience of the big corporations which are carrying out rebranding, the representative of one of the Russian advertizing agencies says. The budget of Rostelecom on outdoor advertizing in 2010 made about 40 million rubles, the director of business development of Aegis Media Dmitry Orchenko estimates. This year the operator theoretically could keep within 30-40 million rubles, he believes.

Rostelecom will spend several million dollars only for stages of placement of teasers, the CEO of consulting company "Dymshits and Partners" Mikhail Dymshits considers. These investments of big effect, according to him, will not bring — not because teasers are ineffective but because in many regions Rostelecom the monopolist in many segments of the market and change of image will not change the attitude of consumers towards him.

Associations of citizens in connection with new of a log of Rostelecom appeared on the Internet

Nashchekin's plan for sales of cloud services for 50 billion rub in 2015

Rostelecom is going to increase in 2015 income from providing new and cloud services to 25% in the general structure of revenue, it in September, 2012 was declared by the vice president of the company for the innovative development of Rostelecom Alexey Nashchekin.

"In 2011 this direction did not bring any income, in 2012 several percent. And in 2015 should reach 25%. In absolute digits - about 50 billion rubles", - Alexey Nashchekin told the correspondent of TAdviser. "Now we observe global convergence: telecom operators create content and service providing is engaged, and the Internet companies build communication networks. In this regard Rostelecom transformiroutsya together with the whole world from the operator of MG/MN in the company providing services".

According to him, the company puts to itself a task by 2015 to become global provider of new services. "In addition to new services we will provide the whole complexes of services", - Alexey Nashchekin concluded.


Approval of the transaction on NVision group purchase

In April, 2010 the Board of Directors of Rostelecom approved the transaction on acquisition of a share in NVision group (NVision brand) by participation in increase in authorized capital "Management company of the NVision group.

As a result of completion of the transaction the share of Rostelecom in authorized capital "Management company of the NVision group made 25%. Exact transaction amount will be determined later, but it will not exceed $50 million. The received means will be aimed at the development of perspective projects of the NVision and Rostelecom group.

Under the terms of the transaction depending on future results of activity of the NVision group Rostelecom acquires the right further how to increase the equity interest of the company to 100%, and to sell the purchased share to current owners of the NVision group.

Provotorov is a CEO

On July 13 Alexander Provotorov is appointed the CEO. On July 15, the Minister of Telecom and Mass Communications Igor Shchegolev provided in Rostelecom and two new first deputies of Provotorov - Anton Kolpakov and Alexey Nechiporenko.

Malofeyev becomes the largest minority shareholder

In September, 2010 it became known that Konstantin Malofeyev, the owner of Marshall Capital Partners fund and the board member of Svyazinvest can be the largest minority shareholder of joint Rostelecom.

According to the Kommersant newspaper, Marshall Capital conducts negotiations with Gazprombank on purchase of the share block of "subsidiaries" of state holding belonging to it which will provide to fund 7% of the new united company. For stocks of the companies of Svyazinvest Marshall Capital it is ready to spend $700 million, but in joint Rostelecom this packet will cost $809-958 million.

Transaction amount can be $700 million that is comparable to the current market value of this packet proceeding from the quotations of subsidiary companies of Svyazinvest. The interlocutor of the newspaper specifies that the transaction will be paid including at the expense of borrowed funds.

Earlier two participants of the telecommunication market told the edition that Gazprombank acquires shares of "subsidiaries" of Svyazinvest for the benefit of Marshall Capital. They claim that in joint Rostelecom Marshall will receive 10.9%. The source of the newspaper said that such packet was redeemed from a number of funds within the last year, i.e. still until when coefficients of share exchange of "subsidiaries" of Svyazinvest on papers of joint Rostelecom were approved. Konstantin Malofeyev claims that it is not true.

Victory in "tender" of FSO of Russia

In September, 2010 the division [[FSO of Russia|Federal Guard Service of the Russian Federation]] announced results of an open competition at the choice of the telecom operator for providing in use of communication channels, trunk lines and services of a virtual private network on MPLS network for the state needs.

According to the protocol to participate in biddings only one organization – the Russian telecommunication operator "Rostelecom" who requested 60 million rubles for accomplishment of the government contract showed willingness – the customer specified the same amount in the notification on tender as the initial cost of the contract. According to the results of consideration of the submitted request by unified commission the operator was allowed to the tender.

At existence only of one request participating in biddings, an open competition it was announced by cancelled. As the competitive offer of Rostelecom conformed to requirements of the customer, the draft of the government contract, according to Paragraph 5 of Article 27 of the federal law of 7/21/2005 No. 94-FZ "About placing orders for the supply of goods, works and services for state and municipal needs", was transferred to the operator.

The telecom operator will have to provide to the customer communication channels, digital with the analog termination, with capacity of 64 Kbps (availability quotient of communication channels not lower than 0.998), digital channels with capacity in the range from 64 to 2048 Kbps (the availability quotient of communication channels is not lower than 0.993) and also services of a virtual private network on MPLS network (capacity of 2048 Kbps; coefficient of availability of service not lower than 0.995; the percent of the lost packets is not higher than 0.2%; transfer lag of packets no more than 75 ms; the recovery time of access to service after accident no more than 3 hours). In detail it is possible to get acquainted with competitive conditions here.

2009: The plan of accession of MRK of Svyazinvest to Rostelecom is approved

On October 20, 2009 the Board of Directors of JSC Svyazinvest unanimously approved the plan of reorganization of holding in the form of accession to Rostelecom of seven interregional companies of communication (MRK):

Events for reorganization are going to be held during 2010-2011, Svyazinvest will stop a management and methodical activity in 2011.

The Moscow assets of Rostelecom (Zebra Telecom Ltd, MTs NTT Ltd), JSC CenterTelecom (JSC RTS) and JSC Central Telegraph (Tsentel Ltd) are going to be integrated at first in the regional company providing services in Moscow. After that according to the plan of reorganization of Svyazinvest the new company is integrated into Rostelecom.

Cellular business of interregional companies of communication is going to be consolidated based on Sky Link Ltd which, in turn, will pass under control of Rostelecom.

As a result of consolidation Rostelecom should become large telecommunication company which will provide services of Internet access, mobile and fixed connection. Considering that according to the Advanced Communications & Media agency six of seven interregional companies of communication enter ten the largest Russian operators of broadband Internet access (broadband access) on number of subscribers - individuals, the joint Rostelecom can become the leader among operators of broadband access. The operational synergy from merger of companies based on Rostelecom can be 30 billion rubles (about $1.02 billion).

  • Capitalization of the company in RTS (August, 2009) – $4.14 billion.
  • Revenue (IFRS, 2009) – 65.5 billion rubles.
  • Net profit – 3.5 billion rubles.

The outbound intercity and international traffic of Rostelecom for the first half of the year 2009 was reduced in comparison with the same period of 2008 by 5% and 7.9% respectively, net profit fell more than twice up to 2.36 billion rubles, and revenue remained at the previous level — 30.55 billion rubles.


The agreement with Japanese on construction of the line Nakhodka — Naoyettsu

In December, 2006 "Rostelecom" and Japan KDDI telecommunication company within Europe Asia the Transit — project signed the agreement on construction of the line Nakhodka — Naoyettsu with the general capacity in 640 Gbps instead of former 560 Mbps.

On October 18, 2006 Rostelecom received the quality certificate of the IP-MPLS of network and became trunk Internet service provider.

Company takeover of Zebra Telecom

In June, 2006 Rostelecom purchased VoIP operator of Zebra Telecom at the Starford Investment company registered in Cyprus.

The logo of the company used till September, 2011.
The logo of the company used till September, 2011.

1994: Inclusion in the structure of Svyazinvest

In 1994 Rostelecom obtained the license for provision of services of an intercity and international telecommunication. Same year Rostelecom is included in the structure of Svyazinvest holding.

1993: Conversion to the joint-stock company

On August 27, 1993 the state telecommunications agency Rostelecom was transformed to public joint stock company of intercity and international electric communication Rostelecom. Society is registered on September 23, 1993.

1992: Creation of Rostelecom

On December 30, 1992 the order of the State Property Committee of Russia creates the state enterprise "Rostelecom" which part 20 state enterprises of an intercity and international telecommunication and also a communication equipment of Intertelecom were.

1991: Creation of Intertelecom based on Sovtelekom

On December 17, 1991 the foundation agreement about creation based on Sovtelekom of the international joint-stock company "Intertelecom" was signed.

1990: Creation of Sovtelekom

Till 1990 responsibility for communication services provision lay on the Ministry of Communications of the USSR. On June 26, 1990 the Ministry of Communications of the USSR created the state joint-stock company "Sovtelekom" to which the rights to operation of network of telecommunication of the USSR were assigned.