Megafon to buy 4G service provider Scartel for $1.2 billion

Russian telecoms Megafon will buy 4G service provider Scartel, which operates under the name Yota, for $1.2 billion.

Megafon already provides mobile broadband services using Scartel’s network and the acquisition of Russia’s only functioning 4G operator will further reinforce its position in the fast-growing segment of the telecoms market.

The company obtained clearance from the country’s competition watchdog to buy Scartel last month.

Meanwhile, TeliaSonera, which owns 25.2 percent of the shares in MegaFon, said it believes that the acquisition is value enhancing for MegaFon’s shareholders as it will strengthen MegaFon’s mobile data leadership in Russia and bring significant cost synergies.


Scartel and Yota own a nationwide 4G/LTE spectrum consisting of 2×30 MHz in the 2.5-2.6 GHz frequency band. It also owns a 4G/LTE network covering approximately 27 percent of the Russian population and provides 4G services to more than 600,000 subscribers.

Scartel and Yota are controlled by Garsdale which also owns 50 percent of MegaFon.

“TeliaSonera has done a thorough review, analyzing the merits and potential risks of this transaction during the past few months. The fact that the seller is also MegaFon’s largest shareholder has made it even more important to look at it from the perspective of all shareholders,” said Per-Arne Blomquist, president and CEO of TeliaSonera.

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