Translated by

Rostelecom Northwest



Rostelecom - 100%




+ Rostelecom Northwest

The macroregional branch "Severo-Zapad" of PJSC Rostelecom ("Rostelecom the Northwest") is the structural division of PJSC Rostelecom operating in the territory of the Northwestern Federal District as a result of accession of JSC North-West Telecom to Rostelecom company in April, 2011. In functional and administrative subordination "Rostelecom the Northwest" there are regional branches servicing about 3 million subscribers of telephony, over 1.52 million Internet users and more than 580 thousand subscribers of Interactive TV and more than 1.1 million subscribers of cable television.

In the territory of the Northwestern Federal District the Rostelecom company is represented by macroregional branch "Severo-Zapad" of JSC Rostelecom and eight regional branches:

History and performance indicators


JSC North-West Telecom - the largest operator of fixed connection in the telecommunication market of the Northwestern Federal District of Russia. The Northwestern Federal District is one of the most developed both in economic, and in the telecommunication relation of the federal districts of Russia: population - 13.6 million people, at the same time 82% of the population live in the cities - it is the highest rate of an urbanization among federal districts. Level of penetration of telecommunication services in is much higher than average Russian: broadband access penetration - 34%, and telephone density – 39 OTA on 100 inhabitants.

JSC North-West Telecom provides a wide choice of telecommunication services, including local and intra-zone telephone communication, data services, Internet access, lease of channels, IP-TV, TsOV, etc., provides the accessibility to services of intercity and international telephone communication of longhaul operators in all license territory. At the end of 2009 in the telecommunication market of the Northwestern Federal District JSC SZT occupies 74% of the market in a segment of local communication, 90% of the market in a segment of intra-zone communication and about 47% of the market (taking into account subsidiary companies) in a segment broadband dostupa*.

JSC North-West Telecom services more than 4.5 million subscribers of fixed connection, more than 900 thousand users of services of broadband Internet access and also the payphone network covering all most remote and sparsely populated points of the Northwest. Digitalization of local network approaches 70%. The company has the powerful transport infrastructure integrating all regions of the Northwest in a single network: total length of telephone lines of JSC SZT exceeds 200 thousand km from which nearly 30 thousand km are modern, communication fiber lines.

In March, 2011 it is announced that the number of users of services in PON technology (it is provided in mass market under the Megaavangard brand) in St. Petersburg exceeded 100 thousand. Let's note also that today communication services are provided on the specified technology by the operator and in the territory of some other cities of presence in the Northwestern Federal District, and the near future provision of services based on PON technology will begin in a number of branches of the company. In March, 2011 the number of subscribers of SZT using communication services on PON technology in St. Petersburg exceeded 100 thousand. More than 35 thousand selected the package offers including several services from their number: "Avangard Duet +" ("New telephony" + Megaavangard), "Avangard of the Trio +" ("New telephony" + Megaavangard + Avangard TV). According to the operator of SZT, the company considers PON technology as an optimal solution for satisfaction of the growing customer needs in modern high-speed telecommunication services and also as economically reasonable method of systematic upgrade of own communication network created based on copper infrastructure. In addition to St. Petersburg, development of network of the operator in PON technology happens as well in the territory of so-called next suburbs and some localities of the Leningrad Region. In particular, "point" connection to network on PON technology of a row in the Vsevolozhsk district, Zelenogorsk, Kolpino, the Communard, Kronstadt, Lomonosov, Pavlovsk, Pushkin, Sestroretsk, Gorelovo, Krasnoye Selo, Shushary and so on is performed today. End in February, 2011 of the first stage of construction of telecommunication infrastructure based on PON technology in the residential complex New Okkervil became one of recently implemented projects (this residential array is under construction in Kudrovo). New settlers of the residential object "The house at Berezovaya Avenue" consisting of three body (1 thousand apartments and 30 commercial premises) and put into operation at the end of December, 2010 had an opportunity to use services from SZT in PON technology.


According to IFRS sales proceeds in 9 months 2010 grew by 7.2% in comparison with indicators in 9 months 2009 and reached 21,065 million rubles. At the same time operating expenses in 9 months 2010 grew only by 2.3% in comparison with the same period of last year and made 18,838 million rubles. Thus, JSC SZT according to the results of 9 months 2010 achieved more than triple exceeding of growth rates of income over growth rates of expenses.

Profit on operating activities in 9 months 2010 was 5,775 million rubles that is 32.5% higher, than for the same period of last year. Growth of revenue, first of all, happened due to increase in level of income from data services and telematic services (Internet) and local communication which grew in comparison with indicators in 9 months 2009 by 15.4% and 6.2% respectively. In absolute expression income from data services and telematic services (Internet) was 4,644 million rubles, from services of local communication – 10,617 million rubles.

  • More than 50% of total revenues of Society are the share of income from the population.
  • The indicator of EBITDA * according to the results of 9 months 2010 was 10,807 million rubles that is 22% higher than an indicator for the corresponding period of 2009, EBITDA margin at the same time grew by 6.2 items up to 51.3%.
  • OIBDA indicator ** according to the results of 9 months 2010 was 10,830 million rubles that is 15.1% higher than a similar indicator in 9 months 2009, at this OIBDA margin increased by 3.5 items to 51.4%.
  • The net profit of JSC SZT in 9 months 2010 was 4,037 million rubles, having increased by 82.3% in comparison with the same period of last year. At the same time the margin on net profit grew by 7.9 items and made 19.2%.
    • Measure calculation of EBITDA is made on a formula: "Profit (loss) before taxation from the continuing activity for the reporting period" + "wear and depreciation" + "financial expenses" - "income on percent on financial assets" - "income on percent on pension plan assets".
    • Measure calculation of OIBDA is made on a formula: "Profit on operating activities" + "wear and depreciation".