Nextra moves into Russian internet market with take-over of leading ISP, Elvis Telecom
Fornebu
6 minute read
Nextra, the pan-European communications service provider (CSP) owned by Telenor, today announced the purchase of the majority share of the Russian ISP, Elvis Telecom, from VimpelCom and its founders. This purchase is the latest in a series of similar purchases of ISPs throughout Europe by Nextra.
The agreement will give Nextra a 51 per cent share in Moscow-based Elvis, while Elvis parent, VimpelCom, will continue to own the minority stake of 49 per cent.
Nextra has broadened its European presence with a move into Russia as it believes that the internet market in the country is set for major expansion in the coming 12-18 months due to the growing economy and a highly educated population. Elvis Telecoms own research has shown that there is a great demand for internet services by both businesses and residential users. As an early mover in the Russian internet services market Nextra, through Elvis Telecom, is well placed to attack both expanding sectors.
With the purchase of Elvis Telecom, Nextra is particularly pleased that is has captured over 50 staff with both market and technology knowledge, led by Irina Torgoud, CEO. The current management team of Elvis Telecom will also be retained, and strengthened according to areas of expertise within Nextra.
Nextra will continue to service the 10,000 customers that Elvis Telecom already has as a traditional ISP, serving both business and residential customers, whilst expanding into the Russian SME market.
The new company will draw from Nextras huge expertise in the provision of IP and VoIP (voice over IP) technologies to expand the provision of these services throughout Russia, starting with the Moscow area. Nextra will be able to draw upon the knowledge that its parent company, Telenor, has gained as one of the most dynamic overseas telecommunications operating in the Russian market. VimpelCom, which is also part-owned by Telenor, brings strong business and technology synergies to the Nextra relationship as it is already one of the countrys leading wireless operators.
Morten Lundal, CEO at Nextra, said: "Russia will be an increasingly important market for ISPs in the coming months and years and I believe that, through the acquisition of Elvis Telecom, Nextra has gained an important foothold. The knowledge we have gained from opening up other European markets, combined with the experience of the Elvis workforce will ensure that we can quickly roll out our extensive range of internet services to both businesses and residential users in Moscow and outward to other Russian cities."
About Nextra
The Nextra Group - owned by Telenor, the leading Norwegian telecommunications operator - is one of Europe's foremost Internet-based service providers for the international business community. The company is not only a traditional Internet Service Provider (ISP), but also belongs to the next generation of Internet companies - Communications Service Providers (CSPs).
About Elvis
Elvis Telecom, established by VimpelCom and three private individuals - is one of the major ISP's in Moscow, focusing on High Quality ISP services and IPtelephony. The company was founded in 1996, and has around 10 000 customers + 15% of the IPtelephony market in Moscow.
About VimpelCom
VimpelCom is a leading wireless telecommunications service company in Russia, operating under the "Bee Line" family of brand names, which are among the most recognized brand names in Russia. VimpelCom's license portfolio covers approximately 70% of Russia's population (100 million people), including the City of Moscow and the Moscow Region, which is the Company's primary market. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange ("NYSE").
Nextra has broadened its European presence with a move into Russia as it believes that the internet market in the country is set for major expansion in the coming 12-18 months due to the growing economy and a highly educated population. Elvis Telecoms own research has shown that there is a great demand for internet services by both businesses and residential users. As an early mover in the Russian internet services market Nextra, through Elvis Telecom, is well placed to attack both expanding sectors.
With the purchase of Elvis Telecom, Nextra is particularly pleased that is has captured over 50 staff with both market and technology knowledge, led by Irina Torgoud, CEO. The current management team of Elvis Telecom will also be retained, and strengthened according to areas of expertise within Nextra.
Nextra will continue to service the 10,000 customers that Elvis Telecom already has as a traditional ISP, serving both business and residential customers, whilst expanding into the Russian SME market.
The new company will draw from Nextras huge expertise in the provision of IP and VoIP (voice over IP) technologies to expand the provision of these services throughout Russia, starting with the Moscow area. Nextra will be able to draw upon the knowledge that its parent company, Telenor, has gained as one of the most dynamic overseas telecommunications operating in the Russian market. VimpelCom, which is also part-owned by Telenor, brings strong business and technology synergies to the Nextra relationship as it is already one of the countrys leading wireless operators.
Morten Lundal, CEO at Nextra, said: "Russia will be an increasingly important market for ISPs in the coming months and years and I believe that, through the acquisition of Elvis Telecom, Nextra has gained an important foothold. The knowledge we have gained from opening up other European markets, combined with the experience of the Elvis workforce will ensure that we can quickly roll out our extensive range of internet services to both businesses and residential users in Moscow and outward to other Russian cities."
About Nextra
The Nextra Group - owned by Telenor, the leading Norwegian telecommunications operator - is one of Europe's foremost Internet-based service providers for the international business community. The company is not only a traditional Internet Service Provider (ISP), but also belongs to the next generation of Internet companies - Communications Service Providers (CSPs).
About Elvis
Elvis Telecom, established by VimpelCom and three private individuals - is one of the major ISP's in Moscow, focusing on High Quality ISP services and IPtelephony. The company was founded in 1996, and has around 10 000 customers + 15% of the IPtelephony market in Moscow.
About VimpelCom
VimpelCom is a leading wireless telecommunications service company in Russia, operating under the "Bee Line" family of brand names, which are among the most recognized brand names in Russia. VimpelCom's license portfolio covers approximately 70% of Russia's population (100 million people), including the City of Moscow and the Moscow Region, which is the Company's primary market. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange ("NYSE").