Russian national operator Rostelecom outlined a strategy to focus on wireless and wireless broadband services as well as pay TV. Its management approved a strategy document for the period 2011-15, which targets "stable top-line growth" and an improved OIBDA margin through unspecified efficiency measures. Rostelecom targets an increase in its wireline broadband market share to up to 50 percent of subscribers in Russia during the period, while the target for wireless broadband is 22 percent and pay-TV at 30 percent. The company said it will streamline its sales activities, make selective investments in the most promising wireline and wireless broadband business segments and expand its backbone capacity to offer an increased range of services. Capital expenditure is projected at an average 20 percent of sales over the five-year period, led by spending in 2011-12. During implementation of the strategy, the company put a cap on net debt of 2 times OIBDA. The project will also see the build-out of national mobile services, based on the Sky Link assets, expansion in Moscow with the integration of NTK, the development of pay-TV content, and the unification of brands under the Rostelecom name. As part of the project, Rostelecom is planning a major cost-cutting campaign, with a target of reducing expenses by RUB 25 billion by 2015, reports Rbcdaily.ru. According to the strategy document seen by the news service, the operator will optimise its procurement system, streamline administrative and commercial functions, and improve property management. The operator has already established the procurement unit.
