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MegaFon, Scartel deal in jeopardy

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RBC, 28.05.2012, Moscow. The Federal Anti-monopoly Service (FAS) could turn down the bid filed by Big 3 mobile operator MegaFon and 4G LTE Internet provider Scartel to establish a telecommunications holding company, if MegaFon is awarded an LTE license on its own, RBC Daily reported today.

The two companies filed documents concerning the deal in late April 2012, but the antitrust authority has postponed the hearing until July 25. However, on July 12 tender results for the right to deploy LTE networks will be announced, and MegaFon is expected to be among its winners along with Rostelecom, MTS, and VimpelCom.

"If MegaFon wins the tender, the odds are high that FAS would rule against the establishment of a telecommunications holding," a source close to the antitrust watchdog told RBC Daily. Otherwise, MegaFon would control two LTE frequency ranges.

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