A little more detail:
Metromedia International Group Moves toBecome the Largest Paging Operator in Eastern Europe and the FormerSoviet Union
March 12, 1998 09:08 AM
EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--March 12, 1998--Metromedia International Group, Inc. through its wholly owned subsidiary, Metromedia International Telecommunications, Inc. ("MITI") announced today that its Radio Paging Group has signed an agreement to acquire a 50% interest in Mobile Telecom ZAO, the largest paging operator in Russia. The acquisition makes MITI's Radio Paging Group the largest affiliated group of paging operators in Eastern Europe and the former Soviet Union.
Mobile Telecom ZAO operates in Moscow, St. Petersburg and many other cities in Russia, and has obtained frequency and operating authority for more than an additional 90 other of the largest cities in Russia. Mobile Telecom ZAO utilizes the same frequency in all areas of Russia that it serves. Upon completion of the transaction, Metromedia affiliated companies within its Radio Paging Group will serve over 100,000 subscribers in Eastern Europe and the former Soviet Union.
The acquisition will close following the receipt of all necessary regulatory approvals and satisfactory completion of other conditions precedent. The agreement also provides that current management will remain in place for a period of not less than two years.
Stuart Subotnick, President and Chief Executive Officer of Metromedia International Group, Inc. observed: "The acquisition of Mobile Telecom ZAO is comparable to the efforts we undertook in the early 1980's in the United States, creating efficiencies in our paging operations by consolidation and addition of experienced management. Mobile Telecom provides a service area that connects our other areas throughout the CIS, providing broad based coverage."
"This acquisition brings two paging operators together that have similar traits. Each of them serves a subscriber base with very high alphanumeric content exceeding 90% of their respective bases, providing higher subscriber fees and increasing purchasing power with pager vendors. Moreover, each utilizes web pages on the World Wide Web to offer access to their subscribers over the Internet, a key feature for CIS paging", according to Richard Sherwin, Co-President of MITI.
Metromedia International Group, Inc. is a global communications and media company. Through its wholly owned subsidiary, Metromedia International Telecommunications, Inc., the company operates communications and media businesses in Eastern Europe, the former Soviet Union and other emerging markets, including cable television stations; AM and FM radio stations; radio paging operations; an international toll calling service; Trunked Mobile Radio systems, and GSM cellular operations that now serve a population of 8.2 million. Through its 57% ownership of Metromedia Asia Corp., MITI operates ventures supporting Public Switched Telephone Networks and Wireless Local Loop systems in China. |
