Russian long-distance operator Rostelecom plans to acquire 75 percent minus one share of GNC-Alfa firm, Armenia's largest independent long-distance operator, for $22.5 million, Kommersant business daily reported on Friday quoting a source close to Rostelecom's board of directors.
"Internet traffic which transits through Iranian networks to Europe is a very promising trend. Part of (this transit channel) will be in Armenia and the purchase of the local long-distance operator should strengthen Rostelecom's positions (in the region)," the source told Kommersant.
The source added that GNC-Alfa's facilities gave opportunities to further the company's development of the rapidly growing broadband market of Armenia, which was estimated at nearly $40 million in 2011.
GNC-Alfa may be the first foreign asset for Rostelecom.
Rostelecom's source also did not rule out that the company might buy Ucom company, Armenia's largest independent internet provider, which would raise Rostelecom's share to about 13 percent on the Armenian broadband market.
