Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Jack & Suzy Welch
Frederick Kempe
Christopher Papagianis
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Britain warns Argentina over Falklands "aggression"
14 Jun 2012
Greek health system crumbles under weight of crisis
14 Jun 2012
Voyager space probe reaches edge of solar system
10:55am EDT
WRAPUP 2-Central banks prepare for turmoil after Greek vote
9:37am EDT
In Wisconsin and Minnesota, lessons for Romney
8:30am EDT
Discussed
116
Obama: U.S. economy ”not doing fine”, action needed
105
China could impound European planes in carbon row
105
Analysis: Obama gambles by asking for more time to fix economy
Watched
U.S. Morning Call: Greek stocks soar; Nokia job cuts
Thu, Jun 14 2012
Bodies found after Peru avalanche
Thu, Jun 14 2012
New NASA telescope a black hole hunter with X-ray eyes
Wed, Jun 13 2012
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more
The Afghan front
On the frontlines of the war in Afghhanistan. Slideshow
Child laborers
A look at children who work to contribute to their family's income. Slideshow
Analysis: Rostelecom mobile push may stir Russian price war
Tweet
Share this
Email
Print
Related News
Verizon hikes data fees in pricing revamp
Tue, Jun 12 2012
Facebook shares plumb new depths, valuation questioned
Tue, May 29 2012
Opera seen a Facebook fit but no "For Sale" sign
Tue, May 29 2012
Analysis: Facebook can't take Asian growth for granted
Thu, May 17 2012
Analysis & Opinion
Nokia retains the power to shock
Related Topics
Tech »
By Maria Kiselyova
MOSCOW |
Fri Jun 15, 2012 6:50am EDT
MOSCOW (Reuters) - State-controlled Russian telecoms group Rostelecom may enter the lucrative Moscow mobile market with discounts of up to 20 percent, likely starting a price war that will hit the three big established operators' profit margins.
The former long-distance monopoly, transformed last year into a multi-service provider by merging with seven regional operators, wants to boost its share of mobile, broadband and pay-TV markets to offset a fall in its core fixed-line business.
While the company has not said what share of the market it was targeting, management told an analysts' briefing last week it planned to take up to 10 percent of the Moscow mobile market by 2015 and launch a 3G mobile network there by early next year.
That means challenging the big three telecoms operators - MTS, MegaFon and Vimpelcom - in a market which, by some estimates, accounted for up to a third of their combined Russian mobile revenues of $20 billion last year.
Analysts cited management as saying Rostelecom could offer a 20 percent discount to win Moscow subscribers.
"It will be negative for the market, for other operators (who) will likely have to take countermeasures to retain subscribers, which will reduce profitability," Otkritie analyst Alexander Vengranovich said.
"There have always been fears that Rostelecom will enter new markets as a discounter. But in the case of Moscow, where it has to invest heavily in network rollout and marketing, Rostelecom will itself suffer most," he said.
Mobile number portability, being considered by the telecoms regulator, would allow subscribers to keep their mobile phone number while changing carrier. That would support Rostelecom's plan, analysts said.
Rostelecom chief executive Alexander Provotorov would not comment on pricing on Thursday, saying it would offer mobile products in a package with pay-TV, fixed broadband and intrazone telephony where it has a stronger position.
"By combining these products we are planning to compete with existing operators," Provotorov told a news conference following the company's annual meeting.
UNEASY ROADMAP
Rostelecom, along with the other top three operators, is expected to be awarded a 4G license at an ongoing tender which would help secure it future cash flows from mobile broadband as growth in voice revenues is limited by high mobile penetration.
Analysts said many questions in Rostelecom's mobile strategy remain, including whether the company will be able to ensure comparable quality of its network and whether it will be successful marketing its products.
"It is a question whether it will be quality subscribers or users who often switch operators," said Anna Lepetukhina at Troika Dialog.
"If Rostelecom wins over those disloyal users, it does not yet mean that other operators will necessarily respond with price cuts - unless it poses a serious threat and wins over quality subscribers," she said.
Rating agency Fitch, which last month rated Rostelecom 'BBB-' with a stable outlook, said the company was only a niche player in the mobile market and its plans entailed "significant execution risks".
"Although the company has a reasonably large spectrum portfolio, the currently available and expected frequencies do not provide it with an easy roadmap to nationwide mobile coverage. Organic development is likely to be costly, and does not necessarily ensure a desired market share," Fitch said.
Low pricing may win the day.
New French mobile operator Iliad said on May 15 it had signed up 2.6 million customers to take 3.7 percent of the market since launching low-cost offers in mid-January.
The buzz around Iliad's 'Free Mobile' also allowed the group to recruit 191,000 broadband customers, 50 percent of all new additions in the sector in the first quarter.
Rostelecom also aims to grow its share of Russia's broadband market to 50 percent by 2015 from just under 40 percent, and is targeting 30 percent of the pay-TV market and 22 percent of the wireless broadband market in subscriber terms, up from 25 percent and 9 percent respectively.
(Editing by Douglas Busvine and Dan Lalor)
Tech
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.