The Russian and international experience shows that traditional fixed-line telephony development has been exhausted. In particular, traffic growth has been decelerating recently, so too has subscriber base growth. Clients need additional opportunities, such as high-speed access to the Internet, videoconferencing, multimedia applications and fixed-mobile convergence.
We assume that in some segments (rural communications) and regional markets (remote districts) we remain monopolists. But there are markets where competition with mobile and alternative fixed-line operators is very high. And these are firstly major Russian cities.
Our companies have monopoly status, which does not let them implement flexible tariff policy. And eventually it will affect their business efficiency.
We hope that the system will not only allow us to minimize losses, but will be a major factor in the investment attractiveness of regional operators, and will create beneficial conditions to access world capital markets.
Our main task is to strengthen our position on the market through investment in the development of new services.
I think that in general the company showed good results, and some financial figures (net profit, sales profit) even exceeded our targets.
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