Vertical

Vertical is an independent telecommunications infrastructure operator that provides design and construction solutions for the deployment of telecommunications networks and equipment as part of urban development plans. It provides operation of more than 3,500 tower facilities and dual-use supports in Moscow and in the Russian Federation.

2021: Based on an independent federal player in the Russian tower infrastructure market

On October 27, 2021, MegaFon informed TAdviser that they had agreed with Kismet Capital Group on a deal that would create an independent federal player in the Russian tower infrastructure market. The company will be created on the basis of the assets of the First Tower Company - as of October 2021, 17 thousand towers and supporting structures - and the Vertical operator - more than 5 thousand objects. More details here.

2019: Purchase of a stake in the company by the ex-head of MegaFon

On December 16, 2019, it became known that Ivan Taurin acquired a stake in the Vertical tower company from Baring Vostok. The latter as a result of the transaction completely withdrew from the number of shareholders of the second largest independent operator of mobile towers in Russia.

As specified to Kommersant in Baring Vostok, it was sold to the structures of Ivan Tavrin and Georgy Chumburidze (founder of Vertica). The representative of Tavrin said that after the transaction, the company is equally controlled by the structures of Tavrin and Chumburidze. The deal was closed on December 12th.

It became known about the acquisition by Ivan Taurin of a stake in the tower company "Vertical" from Baring Vostok

We believe in the potential of consolidating the passive telecom infrastructure market, due to the fact that it is a non-core asset for operators, and we believe that Vertical could potentially become a platform for such consolidation, "said the representative of Tavrin.

Russian Towers President Alexander Chub agrees that favorable conditions have come for consolidation. The sale by telecom operators of their tower assets to professional companies will serve as an impetus for the development of the entire market, he is sure.

Managing partner of AC&M Consulting Mikhail Alekseev estimated the entire Vertical in the range of 10-12 billion rubles. He agrees that the tower infrastructure market in Russia has good prospects for consolidation and that it would be logical for the combined operator to enter the stock market.

According to the forecast of AC&M Consulting, according to the results of 2019, the number of towers, masts and poles for placing communications infrastructure in Russia will reach about 79 thousand, and the market for services to provide seats on them - 6 billion rubles.

By December 2019, Vertical has 3.5 thousand cell towers against 5.1 thousand at Russian Towers. At MTS and MegaFon, this figure is 17 thousand objects, at VimpelCom - 14 thousand, at Tele2 - 12 thousand objects.^[1]

2018

Investments in infrastructure for the entire period of operation with 2013 exceeded 5 billion rubles, the company's revenue for 2018 year amounted to 1.4 billion rubles.

2017: Baring Vostok became a shareholder

As part of the transaction, Vertical received from the funds a company for investments that will go to the development of its own antenna-mast infrastructure and possible M&A transactions. It is planned that in 2017 alone the company will invest about 1 billion rubles in the construction of new structures, the press service of the enterprise said.

"Operators are still actively investing in the development of networks. So, 4G it will require thousands more new base stations in the country, and the standard 5G will require huge investments in construction. At the same time, operators are extremely rarely ready to agree on the sharing of costs for maintaining and maintaining cell towers. That is why large international operators are phasing out their own capital infrastructure in favor of independent infrastructure companies that help optimize costs, while maintaining high network capacity and good coverage. Russia will follow the same path, and today there is an increase in the share of private companies in the mobile infrastructure market. Therefore, Baring Vostok funds invest in Vertical, a company that actively participates in the formation of the telecom infrastructure market, "said Russia Baring Vostok partner. Uzberg Vadim