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Rostelecom eyes mobile merger with Tele2 Russia - Kommersant

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Russian group Rostelecom is in talks with Sweden's Tele2 about a possible merger of their Russian mobile businesses, Kommersant newspaper said on Thursday.

The partnership could see predominantly fixed-line operator Rostelecom exchange its mobile operator Sky Link and a cash payment for a stake in Tele2's Russian unit, the business daily said, citing unnamed sources.

Another possibility being looked at is the creation of a new entity combining all the mobile assets of Rostelecom and Tele2 Russia, including fourth-generation licences, in which each company would get a 50 percent stake, the paper said.

Spokesmen for Tele2 Russia and Rostelecom both declined to comment.

Tele2 is currently Russia's fourth-largest mobile operator with 21.6 million subscribers, while Rostelecom is the fifth biggest with 12.9 million users, according to research group AC&M.

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