OREANDA-NEWS. December 25, 2009. Sky Link will provide last mile service for Volga Telecom subscribers, a regional operator in the Kirov region. This service will support subscribers who lack access to the internet due to distance from fiber backbones, reported the press-centre of OTKRITIE Financial Corporation.

View: This is an excellent example of using Sky links CDMA technology to provide wireless last mile for regional telecom operators. We expect this to result in lower capex for RTOs and higher growth for both Sky link and regional telecoms. While the effects on the valuation of RTOs will be negligible, there will be a more visible impact on Sky Link, which is in the process of being sold to Svyazinvest by Sistema.

Action: We expect a mixture of positive and negative news regarding Svyazinvest to continue. Despite the slightly positive impact of this particular news, we are inclined to take profit in RTOs and switch to mobile operators, as they are likely to increase their market share. Meanwhile Svyzinvest will be busy with restructuring for the next two years.