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MegaFon buys Web Plus for $14 million


Leading Russian mobile operator MegaFon announced on June 15 that it has acquired St. Petersburg Internet provider Web Plus. The deal price has yet to be disclosed, but, according to experts, the value of this transaction is approximately $14 million. The seller is Telecominvest Holding.

Web Plus was founded in 1996. A few years ago, Web Plus was the largest broadband Internet access provider in St. Petersburg. However, since 2007 the company’s market shares has fallen ten times – to 1.5%, and its revenues has decreased twice. These days, the company services about 20,000 recipients, most of who are connected to outdated ADSL technology.

In June 2010, MegaFon acquired Synterra, a company with a large terrestrial and satellite telecommunications infrastructure.

Also in June 2011 MegaFon paid $270 million to acquire wide-band Internet provider NetByNet.

NetByNet provides fixed broadband, digital TV and IP telephony services in Moscow city and region, as well as in the Belgorod, Voronezh, Kursk, Lipetsk and Oryol regions. NetByNet plans to reach 680,000 subscribers and $92 million in revenues this year.

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