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Mastertel finalises purchase of a Connection Service Provider in Moscow


06/25/2007


Mastertel (Connection Service Provider of Moscow and Moscow region) has enlarged its presence in the Capital’s corporate connection market by finalising its acquisition of the ‘pocket’ connection service provider. It was established in 2003 and specialises in the provision of telephony and Internet access and is represented in a number of Moscow’s B-class business centres. Its client base boasts around 150 big clients. Expected profits for the end of 2007 are estimated at 40 million Roubles. As a result of this deal it is planned to modernise the entire network of connection services provided to its clients. New and more modern services will be offered, as well as introducing a more flexible pricing policy. The quality of services will also change to match Mastertel’s high standard. Clients’ base adaptation and full reconstruction is expected to be completed in the space of 1½ – 2 months. “We notice that since most ‘pocket’ connection service providers disappoint their investors after several years due to low liquidity and competitiveness, there is a strong tendency to ‘off-load’ non profitable assets by selling them to experienced players in the market”. “We regularly look at such offers and if such assets are not overvalued, we agree to acquire them with the intention of inclusion into the Mastertel structure. As a result of this the presence of our company in Moscow’s corporate market enlarges accordingly. New and existing clients will profit from this deal. New possibilities will arise for all clients,” - said Vitaly Ezopov, Executive Director of Mastertel.

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