Rostelecom is Russia’s national telecommunications operator, Svyazinvest’s sole provider of long distance services. The company owns and operates one of the country’s most extensive and technologically advanced nationwide backbone networks, providing voice, data and IP services to business and residential customers. Faced with rising competition following the liberalization of the long distance market in 2006, Rostelecom has seen its market share declining in traditional voice telecom services. To combat this, it is actively diversifying its business via developing innovative services. According to recently adopted strategic objectives for 2009-13, Rostelecom has begun shifting toward becoming a single-source provider of comprehensive telecom and info-communication services to customers and operators throughout Russia and beyond.
The company’s majority shareholder is Svyazinvest, which owns 50.67% of common (voting) shares. In 2006-07, about 40% of Rostelecom’s common shares were accumulated by a group of investors, which has caused the share price to quadruple and stabilize without material fluctuation in the course of global financial crisis.