Gars Telecom is to enter the St. Petersburg market. This move is in step with the company’s new strategy of expanding into major cities. In addition, Gars Telecom’s plans include gaining control of more than 20% of the market for telecoms services for business centres in Moscow and tripling its capitalisation.
In St. Petersburg the company will focus mainly on providing services to A+ to B class business centres. Gars will start offering operator services no sooner than 2008 after the finishing touches have been put to its own network infrastructure in the city.
The company is targeting business centres which are currently being built in the city and is going to offer comprehensive services under its own “local building operator” brand name. These include a range of activities — from creating telecoms infrastructure in office buildings to managing and supporting this infrastructure and connecting third party operators. In addition, Gars provides other services required by developers or lessors.
Gars plans to gain control of 10% of the market in St. Petersburg and the Leningrad Area within eighteen months. To facilitate the launch of operator activities Gars is considering the acquisition of small operators in the city. It is reported that it has already struck a deal with two local companies but will not disclose their names until the deal has been finalised. The next city in which Gars intends to establish a presence is Rostov-on-Don, and it also plans to enter five more regions by the end of the year.