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Transtelecom (TTK)

Company

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Owners:
Russian Railways - 99.55%

Content


7200 employees in 2017

Assets

Assets

+ Transtelecom (TTK)

The trademark is a TTK. The largest trunk telecom operator, providing services for telecom operators, Internet service providers and corporate clients.

TTK operates and services one of the largest in Russia a fiber-optical communication network more than 53,000 km long and capacity to 200 Gbps. The network is laid along the railroads of the country, has more than 1000 nodes of access in all regions of Russia and connects Europe and Asia. 17 regional enterprises created in the largest cities of Russia provide services to a TTK in all territory of the country.

TTK is included into the five of the chief alternative operators of fixed connection and provides 37% of lease of intercity channels, occupies 35% in a segment of the trunk Internet and 35% in the market of IP VPN.

TTK works at international market. The transcontinental route of EurasiaHighway, organized TTK, is an optimal telecommunication route between the European and Asian countries.

The TTK implemented large-scale telecommunication projects for the state organizations and large commercial corporations. Among clients of TransTeleCom - the Ministry of Emergency Situations, the Ministry of Internal Affairs, Regional customs authorities, RAS, Roskosmos, experimental design bureau Dry, KNAAPO, Sberbank, Alfa-Bank, Bank Russian Standard, Ingosstrakh, Uralsib, Norilsk Nickel, SUAL, PG MAIR, Evrazruda, EuroChem, VimpelCom, Megafon, MTS, VGTRK.

At the beginning of 2013 consolidation of stocks of the regional enterprises of group of the TTK which were earlier belonging to JSC Russian Railways is complete. The stocks of the regional enterprises of group of a TTK which were earlier belonging to the Russian Railway are transferred to Transtelecom Company Ltd to payment of additional issue of ordinary nominal uncertificated shares of the company which were placed on the closed subscription in December, 2012. The total amount of an additional issue was 1,069,365 pieces, with a nominal value of 1 thousand rubles everyone, for the total amount of 1,069,365,000 rub. The report on results of additional issue of securities of Transtelecom Company Ltd is registered by Federal Financial Markets Service.

Consolidation of stocks of the regional enterprises of group of a TTK is implemented within the plan of reorganization of Transtelecom Company Ltd for creation on its base of uniform vertically integrated company with a filial management structure. This process is going to be completed until the end of 2013.

Filial management structure

2016: directorates are reduced

The telecom operator of a TTK optimized a management structure, having reduced one of its levels – directorates that reduced a chain of decision making and increased the speed of business processes in the company, reported in the press release of a TTK.

The departments making defunct directorates were included into a zone of direct subordination of heads of departments and vice presidents. Heads of defunct directorates were partially transferred to positions in new structure, partially – left the company.

"The lack of excessive managerial levels will allow vice presidents to control even more effectively operating activities of the company and at the same time will raise degree of responsibility of linear employees. It will create a favorable environment for fast decision making and their exact execution", – the president of a TTK Artem Kudryavtsev reported.

Besides, the company management calculates that changes will serve as the tool of additional motivation of employees as powers and partially wage fund are redistributed between the most valuable specialists.

2014: it is complete formations of the uniform company with a filial management structure

In the fall of 2014 the TransTeleCom company announced completion of the procedure of formation of the uniform company with a filial management structure. Subsidiaries which 100% of stocks belonged to Transtelecom Company are reorganized in the form of accession to Transtelecom Company and on November 5, 2014 are excluded from the Unified State Register of Legal Entities.

Based on the existing earlier regional enterprises TransTeleCom macroregional branches are created: "Makroregion Severo-Zapad" (St. Petersburg), Makroregion Baykal (Irkutsk), "Makroregion Far East" (Khabarovsk), Makroregion Cheeta (Chita), "Makroregion Zapadnaya Sibir" (Novosibirsk), Makroregion Kaliningrad (Kaliningrad), Makroregion Centre (Moscow), Makroregion the Upper Volga (Nizhny Novgorod), Makroregion the Volga (Saratov), Makroregion the Middle Volga (Samara), Makroregion Sakhalin (Yuzhno-Sakhalinsk), Makroregion Sever (Yaroslavl), Makroregion Kavkaz (Rostov-on-Don), Makroregion Sibir (Krasnoyarsk), Makroregion Ural (Yekaterinburg), "Makroregion Yugo-Vostok" (Voronezh), "Makroregion Youzhny Ural" (Chelyabinsk). Also the companies purchased by Group of a TTK are transformed to separate regional branches.

Subscriber base of TransTeleCom company

2017: 1.66 million users

In the Internet from Transtelecom 1.66 million subscribers across all Russia use broadband access, the operator is included into the five of the largest providers. In comparison with indicators of 2016 the volume of a subscriber base of Transtelecom increased by 8.8% or 134 thousand subscribers. A TTK provides services of broadband access in the Internet in 250 localities on all territory of the country.

2016: 1.51 million users

In the Internet from Transtelecom 1.51 million subscribers across all Russia use broadband access. Since the beginning of 2016 the volume of a subscriber base of Transtelecom increased by 1.33%. The greatest gain of number of subscribers was recorded in the Volga region (+3.2%), in the Urals (+2.6%) and in the Far East (+1.2%). Average speed of connection for broadband access of subscribers in network of Transtelecom in a year grew almost by 20%. More than a third of new subscribers of a TTK select the tariff plans providing Internet access at a speed more than 50 Mbps today, it is one and a half times more, than the previous year.

2015: 1.9 million users

The subscriber base of TransTeleCom Company, one of telecom operators in Russia, reached 1 million 900 thousand users. The gain of a subscriber base of a TTK since the beginning of 2015 made 6%. In five years, since the end of 2010, the cumulative retail subscriber base of a TTK increased by 9 times.

Since the beginning of implementation in 2011 of strategy for development of retail business by TransTeleCom Company networks in 250 cities of Russia with the general covering more than 6 million households were built. Transtelecom continues to develop actively in retail, occupying 5.6% of the regional market of broadband access in the Internet of Russia.

2014: 1.7 million users

The subscriber base of TransTeleCom company exceeded 1 million 700 thousand users in September, 2014. The gain since the beginning of 2014 made 13%. The TransTeleCom company develops in retail market of broadband access in the Internet in regions of Russia since 2011. At the end of 2013 the number of users of a TTK grew by 31%.

"About 20% of the population of Russia are residents of the small cities and localities. The TTK the first began to master actively this essential segment of the market, and continues to follow the selected strategy. Today a TTK provides Internet access already in 240 cities from most of which part – with the population less than 50 thousand inhabitants, and take the second place by the number of the cities of presence with service broadband access among all operators. A share of a TTK in the market of retail broadband access – 5%, – Svetlana Shamzon, the vice president of a TTK - the head of the Access block noted. – Since 2012 we also actively provide to our subscribers service of cable television, and today more than 260 thousand Russians use it".

2013: 1.5 million users

The subscriber base of a TTK reached 1.5 million users. In two and a half years the number of the people using high-speed Internet access from a TTK grew up by 10 times. The number of the cities entering a retail subscriber base of a TTK was 226. The technical scope of access networks of the company increased by 1.6 million - to 6 million households.

2012: 1.1 million users

In February the cumulative subscriber base of TransTeleCom company reached 1 million 100 thousand users. In plans of a TTK for 2013 – to continue active development of services of broadband access in the Internet and cable television to end users in regions of Russia.

2011: 433 thousand subscribers of broadband access

The subscriber base of the company on service of a shirokopolosnogodostup in the Internet increased in comparison with the end of 2010 by 134% and made 433 thousand subscribers.

Main competences

  • TTK - the supplier of enrollment of telecom services, engineering, construction, operation
  • TTK is a site for "incubation" of new digital products and services for the Russian Railway and also for open

foreign market – from the concept to the pilot and an exit to monetization

TransTeleCom services for the transport industry

Logistics from a cloud

  • Cloud management system for transport and logistic business
  • Polnyynabor of services from control of transport to advanced logistics

Services for the transport industry

  • Federal infrastructure services for the industry of automobile cargo transportation
  • Services on the basis of Internet of Things for management of road infrastructure

Cloud warehouse management systems and material flow of the enterprise

  • Process management of a warehouse
  • Security, including intellectual video surveillance
  • Management of material flows of the enterprise

EDI is integration as service

  • Safe EDI exchange of financial, business, logistic documentation in the form of the standard structured electronic document
  • Fast design of "turnkey" integrated solutions and their providing on XaaS-model

Telecommunication infrastructure

2019: Start of the channel between Tokyo and Amsterdam

On March 4, 2019 a TTK, one of the largest trunk operators in Russia, reported that he together with NTT Communication, the Japanese telecommunication company, started on the existing direction between Japan and Europe a communication channel capacity of 100 Gbps.

Cross-border telecommunication transition between Japan and Russia is performed through the joint underwater optical HSCS cable system (Hokkaido-Sakhalin Cable System) connecting networks of TransTeleCom and NTT Com companies on a route Nevelsk (Sakhalin) – Ishikari (Hokkaido). HSCS became available to commercial operation on July 3, 2008. Thanks to a combination of the underwater HSCS cable system and a transit land route of a TTK of Europe-Russia-Japan (ERJ), clients of TTK use a route between Japan and Europe with the minimum transfer lag of traffic. At the end of 2017 it became clear that the existing technical capabilities on capacity of a system cannot satisfy to requirements and modern requests of the market any more.

The upgrade of HSCS completed at the end of 2018 gave the chance of a TTK to start the channel capacity of 100 Gbps between Tokyo and Amsterdam. On underwater section of a telecommunication cable system the speed of channels is 200 Gbps with the general possibility of expansion of capacity of a system to 5.4 Tbit / c. It allows a TTK to start additional high-speed links which can be offered other operators for commercial use. Separately It should be noted that all works on upgrade of HSCS were performed without interruption services of the existing clients and in strict accordance with the diagram approved with the Japanese side. Works on the Russian section of network were performed together with the company -system integrator "ADV consulting". In the shortest possible time additional underwater communication channels to 200G were started.

2018: Start of cross-border network transition together with Kazakhstan Transtelecom

"Transtelecom company" (TransTeleCom), the telecom operator in Russia, and the Kazakhstan operator "Transtelecom" announced on October 23, 2018 implementation of the joint project on start of cross-border network transition. The joint in network infrastructures of operators is organized between the Aksarayskaya station from the Russian side and D. Nurpeisova's station in Kazakhstan. Read more here.

2017

  • Backbone network of 76,000 km
  • Redundant ring structures> 85%
  • Independent cable infrastructure
  • Own linear operation
  • More than 1000 points of presence of a backbone network
  • International presence in Europe, Asia, America
  • Boundary joints with operators of all neighboring countries
  • Local communication networks more, than in 240 cities
  • > 400 partner operators in all regions of the Russian Federation

Interactive television

In 2017 Transtelecom implemented services and services to provide to subscribers a range of telecommunication services. In the spring the service Interactive television which opens for subscribers access to TV channels in high quality with functions of a pause and rewind of air, archive of programs up to three days, the interactive program schedule and the Video hire shop service was started (a subscription on videkontent). The service is available already in 128 cities of Russia. In June, 2017 the TTK started OTT-SERVICE "TV without borders" which allows to watch television from a TTK on networks of any providers of the Internet across all territory of Russia. In September the company offered subscribers mobile application of TTC TV, and now to prepare adaptation of a product of TTC TV under the SMART TV platforms.

Platform of telematic services

Corporate network TransTeleCom by the principle of "single window"

Target status of corporate network (Network 2.0) [1]

  • Transition from purchase of channels and technologies of communication to acquisition of availability and reliability of objects of business
  • The organization of pro-active monitoring of objects of network (The operator begins to solve a problem when the Client does not know about it yet)
  • The system of online statistics with the integrated information on the reasons of incidents, areas of responsibility, numbers TT on each object of monitoring
  • The automated calculation of penalties
  • SLA for terms of the organization of connections with the minimum requirements ("Fast start")
  • Sales opportunity of the principles of XaaS ("All as service")
  • The guaranteed economy of current expenses

Step 0. What is "The fast start"

  • No more than 5 working days from a request before inclusion in any point
  • L2/L3 channel with capacity not less 2mbit/with
  • Availability Quotient (AQ) not less than 0.99
  • Packet loss no more than 3%
  • RTD no more than 200 ms
  • Jitter no more than 80 ms

Step 1. Joint clustering of objects

Step 2. Pilot zone

  • Transfer on service of 20-30 objects of different types (together with current contracts)
  • Preserving of payment at the current level
  • Setup of a system of pro-active monitoring
  • Reduction of objects to the set parameters of quality (SLA) within 1.5 months (without penalties)
  • Inclusion of 5-10 objects according to the scheme "Fast Start"

Step 3. Transition to the uniform operator of Network 2.0

  • Adjustment of requirements to objects according to the results of the Pilot zone, determination of target value of a discount
  • Signing of the contract on the organization of Network 2.0
  • Transfer of all current contracts with service providers of data transmission
  • Reduction of network in a target status of parameters of quality (SLA) within 2-3 months (without additional penalties)
  • "Inclusion" of the SLA parameters and the approved discount

Step 4. Own control of transport, creation of a multiservice communication network (MCC)

  • Creation of the reference nodes (quantity is defined from features of infrastructure of the Client) integrated by trunk channels (are geographically distributed and technology (SDH+MPLS)), their transfer under management of the Client
  • On each node – accessions to networks of local providers (are used for the organization of connection of the main channels MCC)
  • Connection of redundant channels to the main points of management of business of the Client (generally – the fiber-optic communication line + RRL)
  • Connection of redundant channels to remote objects of the Client (a basis – VOLS/RRL, a reserve - channels based on APN in 3G/4G networks)
  • The system of pro-active network monitoring detects accidents without addresses of the Client, automatically creates a TT, notifies the Client and contractors, starts "counter" of penalties
  • Reduction of the current network to MCC – 6-8 months

Reference node MCC

  • Nodes will be organized in the cities of presence of the Client and are provided according to the scheme "CAPEX as a Service" (are organized at the expense of a TTK and are leased under management of the Client)
  • The budget – within 3 million rubles on a node (taking into account reservation of the EDS)
  • KG of reference network in 8 months of operation – 100%

Transfer of the international trunk traffic to Long Haul (DWDM)

At the beginning of a year Transtelecom completed transfer process of all international trunk traffic on Long Haul DWDM network. Network of Transtelecom [2] provides safe transfer of traffic on thousands of kilometers with small quantity of points [3] and minimum signal delay. The company already occupies about 20% of the world market of data transmission between China and Europe that makes a half of the market of transit of traffic through the territory of Russia.

Transtelecom reduced a traffic route to Europe

On February 20, 2017 the press service announced Transtelecom agreement signature about mutual connection of networks with the Finnish company Cinia Group. As a result of cooperation the route of transfer of traffic between the European and Asian countries is created.

Within the agreement the backbone network of Transtelecom is connected to the Northern digital trunk (Northern Digital Highway) of Cinia company which provides a route for data transmission from large nodes of exchange of traffic in Central Europe to border between Finland and Russia.

Feature of the Northern digital trunk of Cinia in the direct submarine cable Finland-Germany, Cinia S-Lion put into operation in 2016. S-Lion 144 Tbit / provide capacity with and it is directly connected to the main European network points, including to DE-CIX in Frankfurt, the largest point of exchange of traffic in the world.

«
Successful performance of the increasing number of the companies depends on a fast and reliable communication, and each new agreement on mutual connection of networks does borders of the world one step closer. Communication between Europe and Asia is a key factor of our strategy, and we are glad to an opportunity together with Transtelecom company to start a fast, direct route.

Jaana Räty, director of Cinia Group partnership
»

«
The TransTeleCom company provides data services on the direction Europe-Russia for many national operators and transit of traffic Europe-Asia for chief operators of the Pacific Rim, Central Asia and Transcaucasia. Connection of TransTeleCom-Cinia networks adds to the existing cross-border routes of a TTK a new independent optical way with the minimum delay time to the center of Europe that increases attractiveness of services of a TTK and also opens Cinia infrastructure of transit ways of a TTK to Asia. Along a new route IP traffic of clients of North-West Region of Russia is already directed that reduced round-trip time Frankfurt-St. Petersburg by 40%, to 24 ms.

Sergey Yakovlev, the Head of Department on work with telecom operators of Transtelecom Company
»

The internetwork joint of a TTK - Cinia allows Transtelecom to diversify the operating data transmission routes to Western Europe. Cinia, in turn, expands the international infrastructure of long-haul data transmission to provide business interaction of Europe and Asia in real time, to give the chance to data processing centers to benefit at their placement in cool climate of the Scandinavian countries with stringent laws of confidentiality and the low prices of the electric power. It fixes positions of Finland as the main data transfer gateway between the East and the West.

2016

The Transtelecom company performs operation of telecommunication infrastructure of JSC "Russian Railways", servicing one of the fiber lines of communication more than 76000 km long, largest in Russia. Transtelecom uses own operation and management system, including own command centers and more than 500 own linear crews providing recovery of any cable ruptures at any time in time no more than 6 hours. In addition to own cable of JSC "Russian Railways" of a TTK operates cables and other operators with the same high level of quality.

Transtelecom significantly strengthened positions in the market of Azerbaijan where the share of the company grew from 15% to 40%, and became the first Russian operator who sold the channel with a capacity of 100 Gbps to the Caucasus. Also the company continued to develop the international network joints, including started a joint with the Finnish operator Cinia, a new optimal route of IP traffic from Frankfurt to Moscow through Belarus and a new joint with the Chinese operator China Telecom.

Transtelecom occupies about 20% of the world market of data transmission between China and Europe that makes a half of the market of transit of traffic through the territory of Russia. Two of three largest Chinese operators enter in top-5 consumers of trunks of a TTK. At the same time in 2016 the company increased the monetary volume of the concluded long-term bargains with the Chinese operators more than by 70% in comparison with 2015.

The shortest route of transit of Internet traffic to Europe

In August, 2016 Transtelecom together with the largest telecom operator in Republic of Belarus RUP "Beltelekom" started a new optimal route of IP traffic from Frankfurt to Moscow.

Within interoperator interaction the Transtelecom company opened a new trunk route capacity of 240 Gbps for transfer of the international traffic from Germany to Russia. Its shortest geographical extent allows to reduce a signal delay time to 34 ms. The Belarusian operator "Beltelekom" provided 24 communication channels to the largest point of exchange of traffic in Frankfurt for project implementation.

The route organized by Transtelecom will become an alternative for two already existing. Together with it in international market are used the Northern route from St. Petersburg to Stockholm and Youzhny passing in the direction Moscow-Frankfurt through Ukraine. Expansion of foreign network segment allows a TTK to increase the possible volume of services and to provide reliable reservation of channels of access.

2013

The TransTeleCom company develops in retail market of broadband access in the Internet in regions of Russia since 2011 TransTeleCom offers the subscribers service broadband access in more than 200 cities of Russia, at the same time the main market for a TTK are the small cities and localities with the population less than 100 thousand people, nearly 40% of all connections fall to their share. A TTK provides services of broadband access in the Internet and cable television, using modern technologies of access: FTTB, FTTH, GPON. An opportunity to connect the home Internet with a speed of 1 Gbps on Gigabit Ethernet technology is also available to subscribers of a TTK.

Performance Indicators

2016

At the end of year the TTK saved an essential share in the market of transit of the international traffic — about 32%, and in the market of in-Russian transit — about 30%. Revenue of the company in an operator segment grew more than by 650 million rubles in comparison with 2015.

2013

Revenue of the company in 2013 reached 27.4 billion rubles, having increased by 1% (27.1 billion rubles in 2012). Net profit, as well as last year, decreased, having been 0.1 billion rubles (0.4 billion rubles in 2012).

2012: Growth help out also reduction of profit

Revenue at the end of 2012 made 27.1 billion rubles, having increased by 9% in comparison with 2011. Revenue at the end of 2011 made 24.9 billion rubles

The indicator of OIBDA grew by 10% in comparison with 2011 and made 4.8 billion rubles. OIBDA indicator at the end of 2011 was 4.3 billion rubles

Profitability according to OIBDA increased to 17.7% against 17.5% in 2011

Net profit at the end of 2012 was 0.7 billion rubles against 1.0 billion rubles in 2011

Investments made 8.6 billion rubles (32% of revenue)

The debt as of December 31, 2012 made 11.9 billion rubles. The debt ratio to an indicator of EBITDA made 2.47

Main operational results of 2012:

  • The retail subscriber base of TransTeleCom Company increased in comparison with the end of 2011 by 144% and made 1.05 million subscribers
  • The trunk fiber line of communication Tynda-Yakutsk, the first the fiber-optic communication line in the Sakha (Yakutia) Republic is constructed and put into operation
  • The project of cable television across all Russia is started, the subscriber base on service by the end of the year made about 100 thousand users
  • The entertainment portal OKNO.ru is started

2011: Return to plus at the end of year

Net profit at the end of 2011 was 1.0 billion rubles against a loss in 2010. The indicator of OIBDA grew by 31% in comparison with 2010 and made 4.3 billion rubles. Profitability according to OIBDA increased to 17.5% against 12.7% in 2010. Revenue made 24.8 billion rubles, having reduced by 5% in comparison with 2010.

Investments made 6.2 billion rubles (25% of revenue). The net debt as of December 31, 2011 made 7.0 billion rubles. The ratio of a net debt to an indicator of OIBDA made 1.6.

2010: The first loss in the history of the company

The analysis of open information on results of activity of a TTK shows that the company for the first time in history sustains losses according to the results of activity in a year. So, consolidated net income of a TTK in 2006 was 2.172 billion rubles, in 2007 - 2.539 billion rubles, in 2008 - 1.9 billion rubles, and in 2009 - 936 million rubles.

ComNews source in Russian Railways which possess 99.95% of stocks of Transtelecom Company Ltd, reported that committee meeting on audit at Board of Directors of the Russian Railway is appointed to May 17, 2011 and, perhaps, the question of losses of the telecommunication daughter will be considered also there.

"The matter is that a TTK is included into the list of strategic subsidiaries in the system of the Russian Railway, and financial results of this company are consolidated in the reporting of Russian Railways. In this regard the net profit of transport monopoly will be corrected on the value of losses of a TTK", - says a source.

The PricewaterhouseCoopers company (PwC) was an auditor of a TTK in 2010. From the source familiar with its audit report and financial statements of the operator, the reporter of ComNews learned that based on the first half of the year 2010 the net profit of a TTK was 231 million rub, and based on the first nine months - 177 million rubles.

"It turns out that the loss was created in the IV quarter 2010", - summarized a source. At the same time he added that in the budget of a TTK approved for 2010 at the end of year net profit at the level of 151 million rubles was planned.

The senior vice president on economy and finance of a TTK Vyacheslav Sotnik so commented on results of 2010:

"The loss at the end of 2010 is connected with revaluation of the financial investments, write-off of illiquid assets in connection with a conservative position of the new company auditor (PwC) and also with tax claims (charges) for previous years. In total amount influence of these indicators on a financial result of the company for 2010 was 837 million rubles. Without these non-operating expenses and accounting entries the company would complete year with profit". Also Vyacheslav Sotnik added: "At the moment the company shows positive dynamics of financial performance, and already only in the I vartal of 2011 the net profit of a TTK was 364 million rubles".
"Initially Transtelecom was created for the purpose of ensuring the Eurasian transit of traffic, however revenue from this direction making about $60 million hardly covers even operating costs, - the CEO of the analytical agency "Rustelekom" Yury Bryukvin says. - At this conjuncture Transtelecom is guided by national transit, but in connection with development of "the big three" of mobile operators of own trunk channels this direction is also represented unpromising".

A few years ago Transtelecom began expansion on the market of broadband access to the Internet, but also there are no still impressive results, Bryukvin adds: for example, in St. Petersburg Transtelecom services 10 thousand subscribers – less than 1% of the market. The Russian Railway already employed consultants from McKinsey for creation of the new development strategy of Transtelecom and also announced plans to carry out the IPO of the operator or to sell 50% minus one share to the strategic investor. Bryukvin connects with weak results of activity of Transtelecom also resignation in June, 2010 of Sergey Lipatov's team.

History

2019: Mikhail Ivanovich Beskhmelnitsyn is elected the chairman of the board of directors. Its structure is updated

On August 6, 2019 the Transtelecom company announced changes in the structure of Board of Directors of the enterprise. In July, 2019 Mikhail Ivanovich Beskhmelnitsyn, the chief of Control and analytical service of the CEO - the chairman of the board of JSC RZD is elected the Chairman of the board of directors. Evgeny Igorevich Charkin who was earlier heading Board of Directors of a TTK held a post of the Vice-chairman of Board of Directors.

Also the Board of JSC Transtelecom Company was joined by Sergey Vasilyevich Burkov, the member of the committee on audit and risks of Board of Directors of JSC "Russian Railways", and Lyubov Romanovna Nisenboym, the head of department of ANO Russian Government Analytical Centre.

2017

Connection of North Korea to the Internet

At the beginning of October, 2017 it became known of the second source of connection of North Korea to the Internet. Russia became it.

According to Reuters with reference to these companies Dyn Research which specializes in monitoring of Internet connections at 6 a.m. Moscow time on October 1, 2017 Russian Transtelecom began to render services of routing of web traffic from the DPRK. Read more here.

Fitch was confirmed by the rating of Transtelecom

The international agency Fitch Ratings confirmed long-term issuer default ratings of JSC Transtelecom Company in foreign and national currency at the level of "B+". The forecast for ratings is Stable.

Fitch Ratings notes that Transtelecom operates and services one of the largest backbone networks in Russia, and this resource still has potential for business development, both in trunk, and in a mass segment. Also the company is going to enter the new markets, among the perspective directions of development of Fitch Ratings company selects development and providing services for the Russian Railway.

Specialists of the agency see the potential for further increase in rating in stable financial results of the company in a mass segment, including due to new services. Transtelecom is included into the five of the largest operators of broadband access in the Internet from market shares in 5%. In March, 2017 the TTK started a single platform of interactive television for the subscribers, and will begin to provide mobile services on the MVNO model under the TTK Mobile brand in the summer.

Among factors of growth of rating the positive free cash flow directed to decrease in a debt load and high liquidity also appear.

2016

Development of the development strategy for five years

TransTeleCom announced in the fall competition on development of the development strategy of the company for five years. According to the results of purchase by the winner PwC which suggested to perform works for 22.5 million rubles was recognized.

The company should estimate flowing a status of business of a TTK and competitors, to develop the directions of development in the operating and new segments of the market. Among them providing infrastructure, digital services, complex integratorsky projects for 2017-2021 is specified. Final materials should be approved with the customer and Russian Railway until the end of January, 2017.

The structure of the document should contain three sections: the TTK flowing bidnes, services for Russian Railway and new services in foreign market.

Except PwC, Constanta Capital which suggested to develop strategy for 23.8 million rubles applied for participation in tender. A choice of the supplier of service was made on the basis of the price, experience of the company, including in this type of activity, and qualification of personnel.

Transtelecom is included into a new stage of the development. We carried out the complex analysis of the existing business of the company, estimated its efficiency and accurately we understand in what directions we will work further. If till 2011 Transtelecom was mainly trunk operator, from 2011 to 2015 there was "a five-years period of broadband access", then now we are aimed to strengthen considerably work with corporate and state customers", - RIA Novosti of the president of a TTK Roman Kravtsov quotes.

TransTeleCom changed a name

On March 30, 2016 it became known of change of a trade name of TransTeleCom company. The private company became[4].

According to the change registered on March 25, 2016 to the charter, the full trade name of the company in Russian looks as: Transtelecom Company joint-stock company. The reduced trade name in Russian: JSC Transtelecom Company; a full trade name in English - Joint Stock Company TransTeleCom. The reduced trade name in English - JSC TransTeleCom.

Changes in the name of a TTK are caused by need to bring constituent documents into accord with regulations of Chapter 4 of the Civil Code of the Russian Federation (in edition of the Federal law of 5/5/2014 No. 99-FZ).

Renewal of the current agreements and powers of attorney issued on behalf of JSC Transtelecom Company in connection with change of the name, is not required. Number TIN, BIC and the correspondent account of the company did not change. Change of a trade name, in relation to customer service, will not cause changes - all obligations of the company to clients and partners save the force.

2015: Search of ways of monetization of a TTK

On March 12, 2015 it became known of the meeting of the Board of Directors of the Russian Railway which is coming in May, 2015 where as expected, options of monetization of the telecom operator Transtelecom (TTK) will be considered[5].

Earlier it was announced plans of board of the Russian Railway - to define the most effective option of monetization of a TTK to the middle of 2015.

The Russian Railway works on updating of the strategy of development for a TTK adopted in 2011. Main points of this document:

  • development of retail sales of services of broadband access in the Internet
  • services of a pay TV in Russian regions.

The measures for achievement of effective objectives stated in strategy should lead to the fact that for the end of 2015 the subscriber base of the company will make 2.3 million users in 200 cities of the Russian Federation.

In addition to development of retail sales, increase in TransTeleCom base should be promoted by transactions of merge and absorption. The Russian Railway was going to invest about 4 billion rubles in them. Council was going to select 20 billion more rub for development of broadband access in regions and 16 billion rub - on construction of these networks.

2014: The staff of Transtelecom was suspected of corruption communication with Cisco

The Transtelecom operator as one of the Russian customers of Cisco company could participate in corruption schemes. According to the results of own investigation the famous journalist Aram Roston who published article on the website Buzzfeed.com[6] reported about it[7].

Roston is the author of Newsweek, New York Times, Guardian, Observer, Nation and other editions. Working in CNN, he directed department of investigations. In 2010 Roston was awarded with a professional prize of Daniel Pearl Award for article in the Nation magazine "As the USA finances Taliban ("How the US Funds the Taliban"). Besides, the journalist has two awards of Emmy and an award for reportorial investigation.

The Russian office Cisco (Cisco Systems LLC) drew attention of the journalist after the beginning of a political crisis around Ukraine - as one of the leading suppliers of telecommunication equipment in Russia. Besides, the Russian representative office of Cisco is interesting in connection with investigation which is made around it by head company Cisco at the request of the American Securities Commission (SEC) and the U.S. Department of Justice.

At the end of July, 2014 TransTeleCom announced the following indicators of development:

  • total length of broadband access networks of the company exceeded 15 thousand km
  • total number of households with access to services broadband access from a TTK exceeded 6.3 million,
  • from the operator 1.7 million households can use service of cable television.

2012

Purchase Electro-lump (Spark)

The Transtelecom company (TransTeleCom) purchased 100% of authorized capital in Elektro-kom Ltd company (Spark trademark). According to a TTK, as a result of the transaction the number of subscribers of broadband access at a TTK increased by one and a half times, and the transaction is for Transtelecom of the largest for all the time of existence. Acquisition of assets of Spark operator is implemented within the strategy of development for a TTK till 2015. Due to this purchase of a TTK strengthened the positions in a mass segment of the market of services broadband access and also broadened the territory of a scope in the Central and Southern regions of Russia.

Elektro-kom Ltd (Spark brand) the independent telecom operator created in 2003 in Moscow.
The company provides services of broadband Internet access to private and corporate clients and constructions of corporate networks for legal entities. In due time Spark began to work at the market of services broadband access in a number of regions of Russia and to provide Internet access, using as "the last mile" including PLC technology (the so-called "Internet from the socket"). A few years ago Spark sold the Moscow part of the business of the company "2 KOhm" and focused on development of network in the regional markets.

According to a TTK, at the time of purchase the cumulative subscriber base of Elektro-kom Ltd makes more than 200 thousand subscribers, including 4 thousand subscribers legal entities. The technical scope of the networks of Elektro-kom Ltd built on FTTB technology (a fiber optic cable to the building), makes about 700 thousand households in the cities of presence of the company. Total length of city fiber-optical networks of the operator – more than 920 kilometers. A TTK calculate that due to the subsequent organic growth the subscriber base of a TTK on Elektro-kom Ltd network by 2015 will make about 255 thousand subscribers.

2011

Trial operation of MVNO in the Nizhny Novgorod Region

In August, 2011 Transtelecom (TTK) began trial operation of the project of the virtual mobile operator (MVNO) in the Nizhny Novgorod Region. Services are provided based on GSM network of "The Nizhny Novgorod cellular communication" (NSS, "subsidiary" of Rostelecom), but manages parameters of services of a TTK itself using own billing. Participates in the project and MTS, the press secretary Valeria Kuzmenko says it: it provides to subscribers 3G-Internet access. Nizhny Novgorod "subsidiary" of a TTK — the corporate client of MTS, but agreements on the MVNO project with it is not present, Semyonova says.

The TTK since the beginning of 2011 discussed the MVNO projects with the cellular companies. First of all the operator was going to provide mobile services to the biggest corporate client and the owner of the Russian Railway (it has 99.55% of a TTK). But NSS works only in seven regions of the Volga region therefore a TTK continues negotiations on MVNO with "the big three" of the federal cellular companies though is not going to interrupt cooperation with NSS anyway, notices Semyonov. MTS considers the possibility of expansion of partnership from a TTK to all Volga region, not excepting cooperation and in other regions, Kuzmenko says.

So far from a TTK the staff of the operator uses mobile communication. Subscribers of MVNO can not only call, but also create the corporate working groups, call on short extensions thanks to technology of consolidation of the mobile and fixed FMC networks, Semyonova says.

But for a commercial project startup of a TTK phone numbers are necessary. According to Semyonova, the company already submitted the application for one federal DEF code containing 10 million numbers and waits for the answer from the regulator. The order on selection of codes for MVNO is not signed yet, and until then applications of virtual operators are not considered, the representative of the Ministry of Telecom and Mass Communications reported.

Plan of start of virtual mobile operator

On February 17, 2011 it became known that Transtelecom wants to become also virtual mobile operator. The potential customer base of a TTK — nearly 1 million subscribers. A TTK conducts negotiations with MTS, MegaFon and VimpelCom on creation of virtual mobile operator (Mobile Virtual Network Operator, MVNO), the vice president for strategic development of a TTK Shukhrat Ibragimov[8] told Vedomosti[8].

The new service will be offered first of all the biggest corporate client and the owner of a TTK — "Russian Railways" (RR), Ibragimov says. Requests for obtaining licenses and selection of number capacity of a TTK will give after agrees with the cellular companies, he notes. Mobile communication is logical addition to a service package for corporate clients, and within limited access to frequencies of MVNO it is the only model, it specifies. TransTeleCom is going to use the backbone network for the admission of mobile traffic, to receive from mobile operators of a discount and, therefore, to offer preferential terms to clients, Ibragimov specifies.

Now "corporate" mobile operator Russian Railway — MTS. Creation of MVNO would give access to a backbone network of a TTK and would allow to improve communication quality along the railroads and to organize it where there is no covering now, the representative of MTS Irina Osadchaya says. If other operators join the project, then similar cooperation can theoretically reduce costs for development of networks, she adds.

As of October 1, 2010 in the Russian Railway (without the subsidiary and dependent companies) 980,300 employees worked. If all of them become clients of a TTK, then the company will turn into the largest virtual operator in Russia. A TTK locates a backbone network and a billing system therefore its investments into the new project will not exceed $10 million, the marketing director of "One plus" company (specializes in creation of infrastructure for MVNO) Maxim Romashkevich considers. By its estimates, the average account of the subscriber (ARPU) MVNO can make about 300 rub a month. Thus, revenue in a year can exceed $100 million. From 40 to 70% of this amount can remain with TransTeleCom. Everything will depend on that, how deeply infrastructure of mobile operator is involved in the project, Romashkevich notes.

2010

Sales plans of a share in the company

Though a TTK — "golden goose", will be resolved an issue of sale of a share in the company in the nearest future, Lipatov Sergey, the chairman of the board of directors of a TTK reported. He estimates all TransTeleCom at $1.5-2 billion according to Lipatov, different options of involvement of the third-party investor are considered. In March, 2010 the Russian Railway addressed for council in investment banks as it is better to dispose of a share in a TTK: save all 100%, carry out private placement or the IPO. 50% minus 1 stock of TransTeleCom are going to sell the Russian Railway in 2010-2012, the senior vice president of the Russian Railway Valery Reshetnikov told afterwards journalists. He added that the Russian Railway already has offers, but did not tell the names of potential buyers.

It will be very difficult to do without sale of a TTK of the Russian Railway. The annual investment program of the company is planned at the level of 535 billion rubles. Partially money will be attracted also at the expense of an asset sale. In three years of the Russian Railway she intends to sell shares in 30 "daughters". What sum the company is going to realize at the same time, the representative of the Russian Railway does not speak.

On July 20, 2010 it became known that the Russian Railway does not intend to transfer a backbone digital network of communication to 100% "subsidiary" — Transtelecom (TTK). "Today it is impossible" — he reported. A communication network — "a part of technology traffic of the Russian Railway, security and efficiency of railway communication depend on it". The simplest and effective way out is, according to Lipatov, long-term lease of network. Now the fiber optic network, the second in value in Russia after Rostelecom, a TTK rents at the Russian Railway. The guaranteed lease payments of a TTK make $150 million.

But other operators are not ready to buy a TTK without network. TransTeleCom as an asset does not interest MegaFon, and without network — especially, tells the source close to the company. MTS continues to consider the possibility of purchase of a share in a TTK, the representative of operator, but a backbone network — his most attractive asset told.

Sergey Lipatov's leaving

Since July 1, 2010 Transtelecom is left by the president Sergey Lipatov, reported CNews in the company, having added that Lipatov brought up this question within a year. The president of Transtelecom says in the statement that worked in the company 8 years and it intends to focus on own strategic development. According to the Interfax agency, the company will be headed by the senior vice president on economy and finance Vyacheslav Sotnik, and Lipatov can become the chairman of the board of directors of the company. Transtelecom noted that this question is in competence of the only shareholder of operator – the Russian Railway.

Lipatov's leaving – not the only staff change in the company for the last several months. In May the 2010th it was abandoned by the senior vice president on a business activity Andrey Semyonov-Vladov and the Head of Department of economy and finance Alexander Mazharov (remained as the adviser), in April – the head of department of international sales Valery Rostokin (headed the Nvision Group system integrator purchased by Rostelecom). Besides, Transtelecom was left also by the vice president for public relations Arkady Matkovsky: according to a source of CNews close to the company, it after Rostokin passes to work into NVision.

However, assure of Transtelecom that Lipatov's deputies left for other reason, than their chief. In the company there were structural changes – three commercial departments (international sales, wholesales in the national market and voice services) are united in one under the leadership of the new manager - Vitaly Kotov, explained in Transtelecom.

2008: Rebranding and new strategy till 2015

In May, 2008 the TTK carried out rebranding and started implementation of new strategy till 2015. Its main directions - development of mass broadband access in the Internet in regions, local, international and intercity communication for end users and telecom operators, other services of retail market of communication. By 2015 revenue growth more than by 2.5 times is provided.

The consolidated income of TransTeleCom group in 2008 was 27.5 billion rubles, net profit for 2008 was 1.9 billion rubles.

2002: Co-founders of the company Ratnikov and Sparkman leave the company. Lipatov is the head of the company

In 2002 the company was left by its president Victor Ratnikov and the senior vice president for a business activity Li Sparkman who were founders and minority shareholders of the operator. Disagreements with the Minsvyaz which refused to grant to Transtelecom the license for telecommunication and supporting at that moment preserving of monopoly of Rostelecom became the reason of their resignation (the license after all was provided to Transtelecom in 2007 during demonopolization of the longhaul market). Ratnikov was succeeded by the vice-mayor of Sochi Sergey Lipatov.

Notes

  1. Of the presentation Gudenko Ilya the Head of Department of marketing and support of sales "Corporate network by the principle of "single window" - the guaranteed growth of controllability and reliability in the conditions of budget optimization" at a conference of TAdviser on September 7, 2017 Optimization of IT infrastructure of 2017
  2. the regeneratsiitochka of regeneration of traffic
  3. - it is a node of network on which there is optoelectric conversion of DWDM channels. Regeneration of traffic is a transformation of an optical signal into electric and back.
  4. TransTeleCom joint-stock company changed a trade name according to the legislation
  5. the Russian Railway is going to consider options of monetization of Transtelecom in May
  6. [http://www.cnews.ru/news/top/index.shtml?2014/03/31/566240 of Staff of Transtelecom
  7. suspected of corruption communication with Cisco]
  8. 8,0 8,1 [http://www.vedomosti.ru/newspaper/article/255224/pervyj_virtualnyj#ixzz1EIJikjQ5