Rostelecom at a glance

Rostelecom is one of the largest national telecommunications operators in Russia and Europe. The Group operates in all segments of the telecommunications market. The Company`s history began more than 130 years ago when the first telephone communication in Moscow and St-Petersburg was launched in 1882. Since that time the Company has been changed dramatically and passed several technological and organizational phases becoming a national provider capable of delivering a wide range of brand-new digital ICT solutions.

The Company focuses on providing services in Russia. Rostelecom is an undisputable leader of the broadband and pay-TV markets in Russia with over 11.2 million fixed-line broadband subscribers and over 8.0 million pay-TV subscribers, 2.7 million of which are subscribed to Rostelecom’s unique IPTV services available at the national level. The Company also participates in developing mobile sector in Russia through holding a 45% stake in the joint venture with Tele2 Russia which has a significant potential for further growth and incremental value creation.

The Group is the market leader in providing telecommunications services to government bodies and corporates of all levels. It is also a recognized innovator in solutions in the field of health care, E-Government, cloud computing, education, security and housing & utility services.

The Group generated RUB 310.9 billion of consolidated revenues, RUB 105.4 billion of OIBDA and RUB 37.8 billion of net income in 2014.

Rostelecom was assigned ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and Standard & Poor’s respectively.

Description of client segments and delivered services

Segment Description Main services Revenues
B2C The Company operates at retail segment and provides telecom solutions to residential clients High speed broadband Internet, IPTV, Video on demand,
local telephony, DLD, ILD, intrazonal and other services.
The Company also delivered mobile services till August 2014[1].
RUB 146.7 billion for 2014
B2B The Company delivers solutions to corporates, SMB and SoHo Apart from the services available for households, the Company
delivers B2B clients a range of specific solutions such as VPN,
data storage and processing, cloud services and others.
RUB 73.4 billion for 2014
B2G The Company is the major supplier of telecommunications services to the government Apart from the services available for B2B clients, the Company
provides to the state a comprehensive services for E-government,
video surveillance during important events nationwide (elections, unified state exams),clouds solutions in education, health care, housing
and utilities, safe city, etc. Besides, as part of a 10-year state RUB 168 billion contract with the Company implements the project to bridge the digital divide across the country.
RUB 48.9 billion for 2014
B2O The Company delivers services to other operators In this segment the Company provides services to other
operators including interconnect and traffic transit
through its network, telecommunication channels and infrastructure rentout.
RUB 41.9 billion for 2014

Strong Subscriber Base & Market Share

Shareholder Structure [2]

Revenue Mix by Segments 2014

[1] In early August 2014 the second and final phase of the deal to establish the JV with Tele2 Russia was completed. The JV with Tele2 Russia delivers mobile services currently.
[2] Ordinary share capital structure as of February 28, 2015

My Annual Report

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