Rostelecom acquires one of the leading Internet and pay-TV providers in the Primorsky region

Moscow, Russia – August 5, 2019 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that its subsidiary Bashinformsvyaz (“Bashtel”) has signed an agreement to acquire a 100% stake in three companies to secure full control over the Alliance Telecom Group. Alliance Telecom has been providing Internet access and TV services across the Primorsky region since 2007, servicing individual clients and business in the cities of Vladivostok, Ussuriysk, Nakhodka and Artyom.

As for the household segment, which accounts for 80% of Alliance Telecom’s revenue, the operator is an undisputable leader in Vladivostok and one of the leading providers in the Primorsky region overall with a subscriber base of 110,000 families. The company also serves more than 6,000 B2B clients which are predominantly consuming a mono- broadband service.

In 2018, Alliance Telecom’s turnover amounted to over RUB 900 million.

The deal is in line with Rostelecom’s strategic priority to develop its digital ecosystem and client services offering.

Anna Shumeyko, Senior Vice President and Chief of Staff of the Presidential executive office of Rostelecom:

“The acquisition will strengthen Rostelecom’s position in the broadband internet market in the Primorsky region. We are seeing a lot of opportunities to realise the synergy effects from operational cost optimization as well as from upselling the Alliance Telecom subscriber base with an expanded set of services, currently available to Rostelecom’s clients.”