REORGANIZATION OF A TELECOMMUNICATIONS HOLDING COMPANY, CREATION OF A SINGLE MANAGEMENT AND PROFIT CENTER

REORGANIZATION OF A TELECOMMUNICATIONS HOLDING COMPANY, CREATION OF A SINGLE MANAGEMENT AND PROFIT CENTER

Background

  • LACK OF CENTRALIZED MANAGEMENT
    of a disparate network of 11 telecom operators in Moscow, Moscow region, Tver and St. Petersburg

  • LACK OF CONTROL over the financial flows of the Group of Companies

  • SELF-BUDGETING and spending of funds at the local level

    LACK OF AWARENESS and control on the part of shareholders

  • IRRATIONAL USE of production capacity

Task assigned

  • Building a holding structure with a single management and profit center
  • Increasing the company's capitalization with the aim of further selling to a profile investor
  • Increasing competitiveness

Methods of implementation

  • Consolidation of assets and cash flows
    Consolidation of assets and cash flows of subsidiaries into a single corporate entity.

  • Unification of fiber-optic lines
    Unification of fiber-optic lines of all telecom operators

  • Modernization of existing equipment
    Modernization of existing equipment in the fields and improvement of the quality of communication services by redistributing unutilized resources from various companies within the group.

  • Creation of a unified billing center.
    Creating the structure of payment for communication services through payment terminals.

  • Reducing the group's expenses by 5 times.
    Improving the profitability of core business.

  • Introduction of controlled bankruptcy procedures for group companies.

Outcome

Creation of a large telecommunications holding company operating under one brand, with a single reporting form and uniform standards for the provision of communication services in various regions of Russia and the sale of the assets to a profile investor.