Which is better TELE2 or Rostelecom: help in choosing is just around the corner

• First, Mobitel (a subsidiary of Rostelecom) and Tele2 Russia Holding AB will enter into an agreement to exchange 10% of the ordinary shares of Rostelecom held on the balance sheet of Mobitel for 10% in T2 RTK Holding. The transaction will be carried out through a specially created operating room. Oseevsky did not explain in what proportion the current shareholders of Tele2 Russia Holding AB will divide the shares received as part of the exchange. Severstal representative Alexey Mordashov refused to comment on what share in Rostelecom the company expects. A representative of Rossiya Bank did not answer RBC's question.
• On December 18, the meeting of Rostelecom shareholders will consider the issue of conducting an additional issue of shares of the operator at a price of 93.21 rubles. a piece. The main buyer within its framework should be VTB Bank. It is planned that he will buy securities for a total amount of 66 billion rubles. With these funds, Rostelecom will purchase 27.5% of T2 RTK Holding from VTB. As an RBC source familiar with the terms of the deal previously said, VTB will buy 705.08 million shares of Rostelecom.
• The remaining 17.5% of the Rostelecom holding will be bought for 42 billion rubles, this will mainly be borrowed funds, Oseevsky noted.

Are Rostelecom and Tele2 the same thing?

It is not entirely correct to say that these are the same company, since the providers have their own histories of origin and development before the merger procedure. In addition, the difference can be seen in the services provided. Working together improves the competitiveness of both organizations. Therefore, Tele2 and Rostelecom are combining cellular networks and developing joint projects.

The provider emerged in 1992 as the main supplier of wired Internet networks, landline telephone, long-distance and international communications. The company's branches are located in most populated areas to this day. It has significantly expanded the list of options and quality of service.

Tele2 is a classic mobile operator and provides users with a full range of cellular connection capabilities. The development and implementation of LTE allowed the organization to become one of the leaders in the country. Tele2 belongs to the group of companies providing the most budget cellular and Internet communications.

Rostelecom will become the sole owner of Tele2

The Board of Directors of Rostelecom approved an increase to 100% of the company's share in the mobile operator Tele2 (legal entity - T2 RTK Holding), and the company disclosed the parameters of this transaction. According to Rostelecom, the transaction amount for the purchase of a 55% stake in T2 RTK Holding will amount to 132 billion rubles.

Now Rostelecom owns 45% of the shares of T2 RTK Holding. The remaining 55% belongs to the consortium Tele2 Russia Holding, in which 50% of the shares are owned by VTB, 40% by the structures of the owner of Severstal Alexey Mordashov , 10% by Rossiya Bank.

Merger of Rostelecom and Tele2

The process of a full merger was completed after Rostelecom bought Tele2, receiving a full stake in the operator in 2014-2015. Known facts about the procedure and its consequences for clients:

1. Tele2 continues to operate under its original name.
2. Mobile communications are provided in 2G, 3G and LTE. 2G is being discontinued and does not work in a number of regions, including the Moscow region.
3. 16% of consumers use the services of this operator throughout the country.

The decision to buy back shares was due to the need to increase the competitiveness and sales of providers. They now provide a wider selection of tariffs and also improve the quality of options.

How the deal will change the shareholder structure of Rostelecom

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According to Rostelecom materials, after the transaction, the share of the Federal Property Management Agency in the company will be from 33.2 to 38.2%, VTB Bank - from 18.8 to 21.5%, VEB - from 2.9 to 3.4%, Telecom Investments - from 6.8 to 7.8%, Mobitel - from 0.3 to 0.4%, free float - from 37.9 to 28.6%.

FAS approved Rostelecom's petition to consolidate Tele2 Technologies and media

The exact distribution of shares will depend on how many Rostelecom shareholders will take part in the additional issue. As Mikhail Oseevsky explained, if all existing paper holders exercise their right to participate in it, the size of the additional issue will reach 1.2 billion shares. However, he doubts that shareholders will express such a desire.

The government has agreed on a deal to consolidate Rostelecom into Tele2 Economy

Approving the additional issue in October of this year, Russian President Vladimir Putin instructed to maintain the state's share in Rostelecom's capital at a level of at least 33.2%, together with the VTB and VEB.RF stakes it should exceed 50% of ordinary shares. As a representative of Rostelecom explained, VTB will enter into a shareholder agreement with the Federal Property Management Agency for part of the stake (13.9–8.4%) in order to represent the interests of the state.

Which is better: Tele2 or Rostelecom

Each of the presented organizations offers its own selection of tariff plans and options. The first allows you to select SIM cards for mobile phones and USB modems, and offers communication services in the Russian Federation and abroad. The second is a major supplier of unlimited wireless Internet and telephone communications, and also allows you to purchase classic SIM cards for cell phones.

The programs offered for consumers differ, so comparison of Rostelecom and Tele2 tariffs is incorrect. But after the merger of the companies, tariff plans became more affordable.

My conversation

The tariff plan includes free, “International and long-distance access”, “Roaming within

Russia”, “Roaming Abroad”, “Call Forwarding”, “Call Waiting/Hold”, “SMS”, “USSD”, “Packet data services”, “I’m online”, “Informer”, “Voice” mail”, “Automatic Caller ID”, “Access to content” is additionally connected for a fee (to disable the service, dial *155*330#) Internet in addition to the package is provided using the “More” option (to disable, dial *155*310#)

Mobile Internet:

Traffic is rounded up with an accuracy of up to 150 KB.

Internet traffic for the Zvooq mobile application is free only in the Tele2 network when the subscriber is in his home region. In long-distance roaming, the application will consume the total Internet traffic package.

Internet traffic for the Tele2 TV mobile application is free only in the Tele2 network when the subscriber is in his home region. In long-distance roaming, the application will consume the total Internet traffic package.

If you do not use the SIM card for more than four months in a row, the funds may be written off and the number may be blocked. Keep an eye on this.

If the Subscriber fails to perform actions that entail the debiting of funds for services provided, for a consecutive period of 120 days, without a break that interrupts the specified period, and funds are not credited to the Subscriber’s personal account within the specified period, the daily subscription fee begins to be debited from the Subscriber’s personal account in the amount of 3 rubles, including VAT.

The debiting of the subscription fee ceases from the next day after the Subscriber’s personal account reaches a zero balance or funds are credited to the Subscriber’s personal account.

If the balance of the Subscriber's personal account is equal to or below zero for 180 (one hundred and eighty) consecutive calendar days, the Agreement for the provision of communication services is considered terminated at the initiative of the Subscriber.

Rules for charging subscription fees:

The subscription fee is charged in full when switching to a tariff plan, then a month after the previous charge, provided that the balance is sufficient. Unused balances of the main packages included in the subscription fee in the current billing period are transferred free of charge and can be used until the end of the next billing period, provided that the subscription fee is paid on time. If at the time the subscription fee is charged there are insufficient funds in the account, then until the account is replenished and the fee is charged, Internet access is suspended and the basic terms of the tariff apply.

With phones operating in 3G and 4G standards on the Tele2 network, you can use the entire range of services that the company provides to its subscribers at a high level of quality. High-speed Internet and other usual services will be fully available. Voice communication is available in the 3G standard.

In Moscow and the Moscow region, the operation of a SIM card in the second generation communication standards (2G) in the Tele2 network is not provided, therefore, in devices operating only in this standard, connection to the Tele2 network will not occur.

Review of tariffs

The merger gave rise to new tariff plans for mobile Internet for smartphones and tablet computers. Now in sales offices it is possible to purchase and connect any current programs presented in the table.

It is also possible to additionally purchase from Tele2:

• Internet package (5 GB, 150 rub.);
• Briefcase (10 GB, 350 rub.);
• Suitcase (20 GB, 450 rubles).

For old programs of the “Black” line, these additional services do not apply.

How Rostelecom will pay Tele2 shareholders

The deal will consist of three parts. As part of the first of them, Rostelecom will issue an additional share issue of its own in favor of VTB at a price of 93.21 rubles. for one share. The total volume will be 66 billion rubles.

These funds will be used to pay for a 27.5% stake in T2 RTK Holding. That is, in essence, VTB will exchange its stake in T2 RTK Holding for a stake in Rostelecom.

Rostelecom buys Tele2 for 132 billion rubles

Also, 10% of the shares of T2 RTK Holding will be exchanged for 10% of quasi-treasury shares of Rostelecom, which the company owns through its subsidiary Mobitel. In monetary terms, this part of the transaction will be the equivalent of 24 billion rubles.

The owner of this package will be the new . According to the Kommersant newspaper, it was created by VTB. A source familiar with the details of the deal told CNews that the shareholder structure of Telecom-Assets will mirror the shareholder structure of the consortium selling Tele2 shares.

Finally, another 17.5% stake in T2 RTK Holding will cost Rostelecom 42 billion rubles. This is the only part of the deal that Rostelecom will pay for in cash. It is not reported how the current shareholders of Tele2 will divide the funds from the deal with Rostelecom.

History of the companies before the merger

Before the merger, both companies had their own history of development, which should be addressed to understand what led to the joint cooperation between Rostelecom and Tele2.

Tele 2

The Tele2 enterprise was part of the Swedish concern, which provides cellular operator services in Europe. The telecommunications company decided to expand its borders and enter the Russian market, which was attractive due to its size and, accordingly, future income. In 2003, a campaign was launched in Russia to introduce a new operator; a dumping method was used, which involved providing services for calls and SMS at lower prices than those offered by the largest enterprises. At the same time, Tele2 was actively purchasing regional companies providing cellular communications to the population. This was the fastest and most affordable way to expand our customer base throughout the country.

After just a year of operation in Russia, the company acquired more than 1 million subscribers. In 2011, a license was acquired to provide cellular communication services in 42 regions, which brought Tele2 to a new level, since in record time, the number of subscriber users increased to 20 million. Despite the fact that for a long time they could not obtain a license to use 3G, in 2014, the company, which was simultaneously working on the implementation of 4G technology, received a license, which allowed it to take a leading position in the market in Russia.

Rostelecom

Officially, Rostelecom, as an independent enterprise, began its work in 1993. The main activity of the enterprise was the provision of high-quality cellular communications of the GSM standard. With development, Rostelecom has expanded its borders and is one of the major providers providing users with fast access to the Internet and cable television. The legal office from Moscow was moved to St. Petersburg in 2006.

Consequence for old Tele2 subscribers

Despite all the hardships of the reorganization, old Tele2 subscribers practically did not feel the unification. Connection to the new unified network occurred automatically without additional re-registration and the conclusion of new contracts. Users now have a new operator icon on their gadget screens. Tariffs and phone numbers remained the same, but there were some nuances. In order to fully use the services of the updated telecom operator, subscribers were advised to consider all the new tariffs offered and choose the most optimal one for their tasks. Subscribers of the united network can find out detailed information on the company’s official website.

The updated Tele2 asks all its users to carefully study the new rules and tariffs in order to avoid problems and interruptions in mobile communications.