January 04, 2010 |
|The Comstar brand will cease to exist on the Russian telecommunications market in 2010, although the legal entity of the same name will remain, Comstar UTS President Sergei Pridantsev said in mid-October. In his words, the new integrated operator will use two brands - MTS and MGTS, or Moscow City Telephone Network.|
On October 12, 2009, Mobile TeleSystems (MTS) bought 50.91 percent of Comstar UTS from its parent company, Sistema Corporation, for RUB 39.15bn (approx. USD 1.3bn). In late January, MTS increased its share in Comstar to 61.97 percent, and it is not ruled out that MTS will consolidate Comstar entirely. Sistema estimates the synergistic effect from the consolidation at USD 300m. Comstar will function as a separate business unit at MTS.