Board of Directors of the alternative Moscow carrier “Gars Telecom” accepted company development strategy up to 2010 year. Carrier plans to occupy up to 20 per cent in the capital business centers telecommunication market, to go outwards and rise company capitalization to hold an IPO in the future.
“Aggressive increase of the office segment during nearest several years gives specialized telecom-company opportunities for business development. As long as Gars Telecom jointly with ComStar and Golden Telecom is in ‘The Big Three’ of commercial real estate telecom-companies, we have to use these opportunities maximum effectively that is reflected in the new strategy,” — tells P. Gorenkov, Gars Telecom CEO.
Within the bounds of the new strategy known as “Maximum speed-up strategy” significant growth of investments and gain is planned for nearest three years. As it is supposed by the company, it will help company to occupy not less than 20 per cent in the capital business centers telecommunication market, just as now they evaluate company position on 5-6 per cent level.
The next strategy point is to increase company capitalization up to 60+ MUSD. “In the last April we made corporate appraisal. ‘Gars Telecom’ was evaluated over 17 MUSD, according to that it can be evaluated almost in 20 MUSD nowadays,” — noted M. Sergeev, “Gars Telecom” PR Director while conversation with ComNews reporter.
On the company value enhancement will influence territory occupation as well. Company decided to go outwards the Moscow area and to occupy the cities with million populations. Company does not announce what cities it wants to choose but in month or more it will be clear. “In the cities with million populations commercial real estate market begins to found. And well-timed markets enter is very important. Furthermore, ‘Gars Telecom’ is the only company that realizes in the development market special solution known as ‘Local Telecommunication Carrier’ that fits international BLEC standard,” — comments P. Gorenkov. According to his opinion, international standard telecom-solutions are the additional contest advantages for real estate units. “Moreover, international standard telecom-system availability at presence days is one out of key conditions why tenants such as multinational companies choose telecom-provider. According to the ‘Gars Telecom’ Analytical Department, premium office centers in particular begin to build in cities with million populations,” — continues P. Gorenkov.
Within several years company also plans to activate in the market of mergers connected the range of medium-sized corporate telecommunication market players. In 2003 and 2005 years “Gars Telecom” acquired two medium-sized companies with the 1 MUSD turnovers. “Nowadays we try to activate this process and are going to acquire about three or four companies that fits our business”, — explains M. Sergeev. One deal will be in Moscow and others in million population cities. Company is in negotiations with three companies at the moment.
“Such a strategy will create a base for further effective company development, investors engaging and holding an IPO as well in 2010-2011 years,” — concerns in the company.
“Our company is a medium-sized anyway. So we have risks and it is easier for bigger companies to exclude it out of the market. We prefer to have timing advance. Upon the market consolidation risk exists that medium-sized companies will loose its market shares,” — summarizes M. Sergeev, “Gars Telecom” PR Director.
“In my opinion, chosen strategy is the only possible. ‘Gars Telecom’ takes its lead from ‘Comstar’ and ‘Golden Telecom’ repeating the same but scaled-down model. The problem is that ‘Comstar’ and ‘Golden Telecom’ entered the market earlier. And ‘Gars Telecom’ is among overtaking companies. The competition among such companies is so high that additional investments are not enough but additional advantages are necessary. ‘Gars Telecom’ has such competitive advantages that help to be closer to leaders. But it is not impossible that ‘Gars Telecom’ can be merged,” — tells E. Solomatin, “Cominfo Consulting” Development Director.
“Gars Telecom” profile: telecommunication management, integration projects realization and telecommunication services rendering. Company is oriented to cooperate with big-sized corporate clients and telecom-carriers. Along with tradition telecom-services company renders services in telecom-consulting, outsourcing of the communication services and telecom-infrastructure, and also telecom-budget management. “Gars Telecom” exclusively realizes in Russia specialized telecom-solutions for commercial real estate market that fit international BLEC standard (Building Local Exchange Carrier), and develop telecom-consulting practice in Russian development market. Till 2003 “Gars Telecom” has become Russian Virtual Mobile Network Operator for corporate sector. The host provider is Megafon. Upon the 2006 year second quarter aggregative APRU is $181, 27 projects were realized with the total billing over 42 million rubles. Turnover in 2006 year was 249 941 thousand rubles that was 35 per cent higher than in 2005.