ROSTELECOM PJSC (RKMD)
ROSTELECOM PJSC: Rostelecom launches the next generation Transit Europe -
Asia project
17-Jun-2020 / 10:01 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Rostelecom launches the next generation Transit Europe - Asia project
Moscow, Russia - June 17, 2020 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX:
ROSYY), the largest integrated digital service provider in Russia, today
announces that it has launched, a project to construct a new generation
fiber-optic communication line connecting Russian western and eastern
borders under a working title TEA NEXT.
In 2023-2024 Rostelecom plans to launch a brand-new set of services, based
on the transit communication line between Europe and Asia TEA NEXT which is
a next step of the TEA project evolution. TEA NEXT will provide clients with
an opportunity to utilize the dark fiber[1] infrastructure and locate its
own equipment along the new fiber-optic communications line.
TEA NEXT fiber-optic communication line is unique because it is designed to
encompass facilities that no other existing terrestrial system provides, but
which are widely used in sub water intercontinental communications models.
Moreover, it will be available for use by all major Russian operators.
The project is developed by Rostelecom's newly founded company Atlas which
will be supported by financial and strategic partners, including one of the
Russian banks and a number of international investors and communications
operators. Total investment will amount to US$500 million within several
years.
TEA NEXT project capacity will reach 96 dark fiber lines available to
international operators and global OTT companies as a transit communications
means connecting Asia and Europe, and to national operators in Russia.
The first level of the infrastructure - dark fiber lines with platforms for
own active DWDM equipment[2] available along the new line, will be provided
to clients for long-term use of up to 20-25 years. This will allow them to
utilise dark fiber at their own discretion and with their own equipment
during the entire guarantee period of up to 2045. The active DWDM equipment
can be easily replaced or modernised at any time during the period of use
which will increase efficiency of the capacity they acquire.
The TEA NEXT line will be constructed based on the cutting edge Ultra Low
Loss optical fibre which allow for use of all advanced long-distance DWDM
equipment. The mainline will pass along the shortest route from West to East
of the country with stations in largest cities[3]. Round Trip Delay will not
surpass 85 m/s from Moscow to Vladivostok, and 55 m/s from Moscow to Khyagt.
Natalia Kryuchkova, Vice-President for Carrier Business and Sales of
Rostelecom, commented: "TEA's West-East infrastructure for Russian operators
was built in 1990s and 2000s and, the next 5-10 years will see its
replacement or significant modernisation. By the end of TEA NEXT
construction, Rostelecom's fibre optic infrastructure will not only be used
by Rostelecom, but a substantial number of other Russian operators will also
benefit from its technically advanced features allowing for better and more
flexible planning of owned communications network. From the commercial point
of view, it will provide a much more cost-effective model for long term
investments in backbone network infrastructure".
Further information is available at
https://www.company.rt.ru/en/ir/news_calendar/ [1].
* * *
Rostelecom [2] is the largest integrated digital services and products
provider, operating in all segments of the telecommunications market in
Russia. The Company serves millions of households, state and private
enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed
Internet access and pay-TV. The total number of broadband users stands at
over 13.2 mln users, it has more than 10.5 mln pay-TV customers, over 5.7
mln of which are subscribed to Rostelecom's IPTV services. Tele2 Russia, a
Rostelecom subsidiary , is a major player in the mobile market with over 44
mln subscribers and the industry-leading NPS, a customer satisfaction
benchmark.
In the first quarter of 2020, the Group generated RUB 121.6 bln of revenues,
RUB 47.1 bln of OIBDA (38.7% of revenue) and RUB 7.7 bln of net income.
The Group is the leading provider of telecommunications services to
government bodies and corporates of all levels.
Rostelecom is a key strategic innovator that provides solutions in the
following fields: E-Government, cybersecurity, data-centers and cloud
computing, biometry, healthcare, education and housing & utility services.
The Group's stable financial position is confirmed by its credit ratings.
Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings
by Fitch Ratings and Standard & Poor's respectively, and AA(RU) by ACRA.
* * *
Certain statements in this press release are forward-looking statements
within the meaning of the U.S. federal securities laws and intended to be
covered by the safe harbours created thereby.
Those forward-looking statements include, but are not limited to:
? Assessment of PAO Rostelecom's (the Company) future operating and
financial results as well as forecasts of the present value of future cash
flows and related factors;
? The Company's plans to take ownership stakes in other organisations;
? the Company's anticipated capital expenditures and plans to construct
and modernize its network;
? the Company's expectations as to the growth in demand for its services,
plans relating to the expansion of the range of its services and their
pricing;
? the Company's plans with respect to improving its corporate governance
practices;
? the Company's expectations as to its position in the telecommunications
market and forecasts on the development of the market segments within
which the Company operates;
? economic outlook and industry trends;
? the Company's expectations as to the regulation of the Russian
telecommunications industry and assessment of impact of regulatory
initiatives on the Company's activity;
? other statements regarding matters that are not historical facts.
Such forward-looking statements are subject to risks, uncertainties and
other factors, which could cause actual results to differ materially from
those expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:
? risks relating to changes in political, economic and social conditions
in Russia as well as changes in global economic conditions;
? risks relating to Russian legislation, regulation and taxation,
including laws, regulations, decrees and decisions governing the Russian
telecommunications industry, securities industry as well as currency and
exchange controls relating to Russian entities and their official
interpretation by regulatory bodies;
? risks relating to the Company, including the achievement of the
anticipated results, levels of profitability and growth, ability to create
and meet demand for the Company's services including their promotions, and
the ability of the Company to remain competitive in a liberalized
telecommunications market;
? technological risks associated with the functioning and development of
the telecommunications infrastructure, technological innovations as well
as the convergence of technologies;
? other risks and uncertainties. For a more detailed discussion of these
and other factors, see the Company's Annual Report and the Company's other
public filings.
Many of these factors are beyond the Company's ability to control or
predict. Given these and other uncertainties, readers are cautioned not to
place undue reliance on any of the forward-looking statements contained
herein or otherwise. The Company does not undertake any obligation to
release publicly any revisions to these forward-looking statements (which
are made as of the date hereof) to reflect events or circumstances upon the
annual report publication or to reflect the occurrence of unanticipated
events, except as may be required under applicable laws.
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[1] Dark Fiber is an unused optical fibre, available for use in fibre-optic
communication or the potential network capacity of telecommunication
infrastructure.
[2] DWDM or Dense Wavelength-Division Multiplexing is an optical
multiplexing technology used to increase bandwidth over existing fiber
networks. DWDM works by combining and transmitting multiple signals
simultaneously at different wavelengths on the same fiber.
[3] Saint Petersburg, Tver (Rostelecom's data center in Udomlya), Moscow,
Nizhny Novgorod, Kazan, Yekaterinburg, Tyumen, Novosibirsk, Krasnoyarsk,
Irkutsk, Ulan-Ude, Chita, Khabarovsk and Vladivostok.
ISIN: US7785291078
Category Code: MSCL
TIDM: RKMD
LEI Code: 2534001D752JPNM0H170
Sequence No.: 70236
EQS News ID: 1071767
End of Announcement EQS News Service
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