Quick View: UCom-Beeline Merger Poses Expansion Possibilities For Rostelecom

摘要

The Latest: Russia-based VEON has confirmed that it is negotiating the sale of its Armenian wireline and mobile subsidiary to localrival U-Com. The move has implications for minor wireline player GNC-Alfa, which could seek to acquire the merged entity'ssurplus spectrum and other assets.Implications: At present, VEON Armenia (which operates under the Beeline brand) accounts for 25.3% of Armenia's 3.82mnmobile subscriber base; U-Com's 16.6% share would take its total to just under 42%. On that basis, there is no reason for Armenia'sPublic Services Regulatory Commission (PSRC) to object to the deal on the basis of mobile market concentration. VEON's Armenianwireline unit - the former state-owned incumbent - accounts for 99% of fixed voice customers and 86% of fixed broadband services,and this will not change as a result of a deal.