Rostelecom and Korea's GS Home Shopping Inc. create teleshopping channel

Rostelecom PJSC, Russia’s national telecommunications operator, announces that Rostelecom’s President Sergey Kalugin and GS Home Shopping Inc’s CEO Huh Tae Soo today signed agreements to create Big Universal Mall Channel, a new teleshopping channel for the Russian market. Rostelecom’s Board of Directors approved the key elements of the deal at a meeting held on June 30, 2015.

Both companies are expected to invest a total of USD 20 million, with Rostelecom funding USD 12 million of this amount. Rostelecom will have a 60% share in the operating company that will handle the channel’s sales (Big Universal Mall LLC), and an 80% share in the broadcasting company (Big Universal Mall Channel LLC).

Big Universal Mall Channel is a new concept in Russia with a focus on live broadcasting and interaction with the audience. The channel will go on air at the beginning of 2016. Rostelecom will broadcast the channel on its own cable TV and IPTV networks and will review the possibility of cooperating with other pay-TV providers. The teleshopping channel can draw on Rostelecom retail chain to both promote and deliver goods, and the Company’s call

Sergey Kalugin, President of Rostelecom, commented: “A key element of Rostelecom’s strategy is to build its media business by exploiting the Company’s leading position in cable TV, IPTV and high-speed broadband services, so we are delighted to announce our cooperation with GS Home Shopping on the creation of Big Universal Mall Channel. The channel has all the elements needed to quickly become one of Russia’s leading shopping channels, and with the expertise and resources of both Rostelecom and GS Home Shopping, we are confident the channel will be a success. The channel is expected to contribute to the further diversification of Rostelecom’s business and support its topline.”

Huh Tae Soo, CEO of GS Home Shopping, added: “Entering the Russian market by partnering with Rostelecom is a landmark event for us. Having already worked in eight countries, we look forward to adapting our new teleshopping concept for the Russian market.”