CenterTelecom

CenterTelecom was a Russian telecommunications operator focused on fixed-line voice services and Internet access. It was formed within the consolidation of Russia's regional telecommunications industry and became one of the country's largest fixed-line operators before being absorbed into Rostelecom in 2011. The company's institutional roots extended back to the late nineteenth century, when organized postal and telegraph administration was established in the Moscow area. During the Soviet period, the relevant communication offices were reorganized several times. Between 1922 and 1926, the Post and Telegraph Offices Division under the Moscow Soviet was transformed into the Communication Department of the Moscow District. These historical structures formed part of the predecessor network from which the later regional telecommunications organizations developed. The corporate entity most directly associated with CenterTelecom was established on 20 June 1994 as the open joint-stock company Elektrosvyaz of the Moscow region. In 2001, that company adopted the CenterTelecom name. The business was subsequently enlarged in 2002 through the consolidation of Elektrosvyaz of Moscow Oblast with a large group of regional operators and telephone-network companies. The combination included organizations associated with Voronezh, Yaroslavl, Tula, Tver, Belgorod, Vladimir, Kaluga, Lipetsk, Tambov, Smolensk, Bryansk, Ryazan, Ivanovo, Kursk, Oryol and Kostroma, as well as the Vladimir City Telephone Network. This consolidation gave CenterTelecom a broad regional footprint across central Russia. Its principal activities were traditional fixed-line telecommunications and Internet service provision. The operator was ranked fifth among Russian telecommunications companies in the period described by the reference material, behind Rostelecom, MTS, Vympelcom and MegaFon. Unlike a nationwide mobile-focused operator, CenterTelecom's position rested primarily on inherited fixed-line infrastructure, regional access networks and local telephone operations. CenterTelecom was also part of the Russian telecommunications privatization and holding-company structure. Svyazinvest held 50.69% of its voting stock, and the company traded on both the MICEX and RTS under the symbol ESMO. The listing made CenterTelecom one of the publicly traded regional communications assets associated with the Svyazinvest portfolio. The company ceased to exist as an independent operator on 1 April 2011, when it merged with Rostelecom. The merger was part of a wider effort to consolidate Svyazinvest-related regional telecommunications assets under a larger national operator. CenterTelecom therefore survives mainly as a historical corporate and regional-network predecessor within Rostelecom rather than as an active standalone brand.

CenterTelecom developed from the long-running state and regional communications infrastructure of the Moscow area. The institutional history of that infrastructure reached back to the late nineteenth century, when the Moscow postal and telegraph district was established. In the early Soviet period, administrative responsibility was reorganized. From 1922 to 1926, the Post and Telegraph Offices Division under the Moscow Soviet was replaced by the Communication Department of the Moscow District. These reorganizations provided the historical foundation for the regional telephone and telegraph organizations that later became corporate telecommunications operators. The modern corporate predecessor was incorporated on 20 June 1994 as the open joint-stock company Elektrosvyaz of the Moscow region. This formation took place during the restructuring and corporatization of Russia's telecommunications sector following the dissolution of the Soviet Union. In 2001, the company adopted the name OJSC CenterTelecom, reflecting its intended role as a major communications operator for Moscow Oblast and the wider central region. A decisive stage came in 2002, when CenterTelecom was created or substantially enlarged through the merger of Elektrosvyaz of Moscow Oblast with numerous regional telecommunications entities. The participating organizations included Voronezhsvyazinform, Yartelekom, Tulatelekom, Elektrosvyaz of Tver Oblast, Belsvyaz, Elektrosvyaz of Vladimir Oblast, Elektrosvyaz of Kaluga Oblast, Lipetskelektrosvyaz, Tambov Elektrosvyaz, Smolensksvyazinform, Bryansksvyazinform, Elektrosvyaz of Ryazan Oblast, Ivtelekom, Elektrsvyaz of Kursk Oblast, Elektrosvyaz of Oryol Oblast, Elektrosvyaz of Kostroma Oblast and the Vladimir City Telephone Network. The Moscow City Telephone Network and Mostelecom were specifically not included in this combination. The merger created a substantial central Russian fixed-line operator with a geographically distributed network. CenterTelecom's business centered on fixed-line voice communications and Internet access. Its assets and customer base were primarily inherited from the regional companies brought together during the 2002 consolidation. In the Russian market ranking cited by the reference material, CenterTelecom stood fifth among telecommunications companies, after Rostelecom, MTS, Vympelcom and MegaFon. Ownership and capital-market status were important parts of the company's identity. Svyazinvest Holding Company controlled 50.69% of CenterTelecom's voting stock. The company was listed on the MICEX and RTS stock exchanges under the ticker ESMO, making it a publicly traded regional telecommunications asset within the Svyazinvest structure. The final stage of CenterTelecom's history was its absorption into Rostelecom. On 1 April 2011, CenterTelecom merged with Rostelecom. This transaction ended CenterTelecom's status as a separate corporate operator and folded its regional fixed-line and Internet activities into Rostelecom's national network. The brand is consequently defunct as an independent business, although its predecessor networks and operations became part of the acquiring telecommunications group.

1. 2011Merger with Rostelecom

   CenterTelecom merged with Rostelecom on 1 April 2011 and ceased operating as an independent company.

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2. 2002Regional telecommunications consolidation

   CenterTelecom was formed through the consolidation of Elektrosvyaz of Moscow Oblast with numerous regional telecommunications operators and the Vladimir City Telephone Network.

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3. 2001Company adopts the CenterTelecom name

   The Moscow-region Elektrosvyaz company changed its name to OJSC CenterTelecom.

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4. 1994Elektrosvyaz of the Moscow region incorporated

   The open joint-stock company Elektrosvyaz of the Moscow region was established on 20 June 1994.

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5. 1926Moscow District communication reorganization completed

   The reorganization of the relevant Moscow postal and telegraph administration was completed, forming part of the institutional lineage of the later regional operator.

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6. 1922Communication administration reorganized

   The Post and Telegraph Offices Division under the Moscow Soviet began being reorganized into the Communication Department of the Moscow District.

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7. 1890Moscow postal and telegraph administration established

   The institutional roots of the later CenterTelecom network are traced to the creation of the Moscow postal and telegraph district in the late nineteenth century.

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A large regional fixed-line telecommunications and Internet operator serving central Russia, positioned as a consolidated successor to multiple oblast-level communications companies.

• Fixed-line telephone servicesTelecommunications

  CenterTelecom's core business was the provision of fixed-line voice telecommunications over regional telephone networks inherited from its predecessor companies. These services supported residential, institutional and business communications across Moscow Oblast and other central Russian regions. The fixed-line base was the principal infrastructure foundation of the company before its integration into Rostelecom.

• Internet accessInternet services

  CenterTelecom operated as an Internet service provider in addition to its traditional fixed-line business. Internet access was delivered through the company's regional telecommunications infrastructure and complemented its voice-network operations. The reference material identifies Internet service provision as one of the company's principal business activities, but does not provide a detailed breakdown of access technologies or individual plans.

• 2011Merger into RostelecomM&A

  CenterTelecom was one of the regional telecommunications assets associated with the Svyazinvest structure, while Rostelecom was the larger national operator.

  What changed. CenterTelecom merged with Rostelecom on 1 April 2011.

  Aftermath. CenterTelecom ceased to exist as an independent company, and its telecommunications activities became part of Rostelecom's broader national network.

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• 2002Consolidation of central Russian regional operatorsM&A

  Russia's telecommunications sector was consolidating regional fixed-line companies into larger operating groups. CenterTelecom was created on the basis of Elektrosvyaz of Moscow Oblast and a large set of oblast-level communications companies.

  What changed. The company combined with regional entities including operators associated with Voronezh, Yaroslavl, Tula, Tver, Belgorod, Vladimir, Kaluga, Lipetsk, Tambov, Smolensk, Bryansk, Ryazan, Ivanovo, Kursk, Oryol and Kostroma, along with the Vladimir City Telephone Network.

  Aftermath. The transaction produced a major central Russian fixed-line operator and expanded CenterTelecom's regional footprint. Moscow City Telephone Network and Mostelecom were not part of the consolidation.

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• 2011CenterTelecom merges with Rostelecom

  CenterTelecom was merged into Rostelecom on 1 April 2011, ending its existence as an independent telecommunications company.

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1. CenterTelecom