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TransitTelecom to invest $60 mln in long-distance communications

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MOSCOW, February 1 (RIA Novosti) - Russian communications firm Interregional TransitTelecom (ITT) plans to invest $50-60 million in its network to gain a foothold in the long-distance communications market, the company said Wednesday.

ITT last year obtained a license to provide international and intercity communications. Under the license terms, each company seeking to provide long-distance communications must have its own network covering the entire territory of Russia.

The company's chief executive Konstantin Solodukhin said ITT had already started to provide long-distance communications in St. Petersburg, in Tver in European Russia, and in Moscow. The company was therefore already establishing itself as a competitor in the long-distance communications market, Solodukhin said.

ITT is expected to start providing long-distance communications across the whole of Russia from March 1. It planned to take a share of around 15% in the long-distance market, Solodukhin said.

With the emergence of new operators on the long-distance communications market, tariffs on communications services were likely to fall by 15-20%, he said.

A total of 15 companies, including Russia's leading telecoms firms such as Golden Telecom, Telecom, VimpelCom and others have received licenses to provide long-distance communications.

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