COMSTAR – United TeleSystems (COMSTAR-UTS) was incorporated in May 2004 through the merge of COMSTAR, MTU-Inform and Telmos as a result of reorganization of AFK Sistema telecommunication assets. COMSTAR brand has been present on the domestic telecom market for 20 years already.
In 2004, COMSTAR-UTS approached the Moscow market of broadband Internet for private users (STREAM brand) having thus become on of the pioneers of ADSL and having ensured its leading positions in this fast-growing segment. At the same time, COMSTAR Wi-Fi project was launched to create the network of public Wi-Fi access points.
2005. Leadership in Moscow and approach to RF regions
- COMSTAR-UTS gained control over Moscow City Telephone Network (MGTS) and MTU-Intel (now COMSTAR-Direct) having thus become the largest multi-service telecom operator with more than 90% of Moscow subscribers.
- STREAM IPTV service was commercially launched.
- Aggressive expansion into regions of Russia began. Telecommunication assets were acquired in the Moscow region (Yunitel and Kontrast Telecom), Saint Petersburg (Metrocom), Tyumen (Tyumenneftegazsvyaz) and Saratov (Konversiya Svyaz and TK Overta).
2006. IPO, expansion of the regional network and consolidation of assets acquired
- In February, COMSTAR-UTS made IPO and raised 1 billion and 60 million US dollars on the stock-exchange market. Such result of the initial public offering is a record among telecommunication companies both in Russia and the CIS, and the second largest result throughout the history of offerings made by Russian companies at the London Stock Exchange at that time (after AFK Sistema).
- Integration of NGN networks of MGTS and COMSTAR began in Moscow.
- The first single regional customer service center was opened.
- Astelit, an alternative provider of communication services in Moscow and Saint Petersburg, was acquired.
- Acquisition of telecommunication operators in Ukraine and Armenia – approaching CIS markets.
- On December 13, COMSTAR-UTS acquired a blocking minority ownership of Svyazinvest as a part of discharge of its investment community obligations related to efficient utilization of the means raised by IPO.
2007. New stage of development – gaining leadership on the Russian telecommunication market
- Sergey Pridantsev was appointed president of COMSTAR-UTS. The Board was incorporated to consolidate management functions on the Group level.
- Five Attack Angles long-term development strategy was elaborated and approved (broadband access, regions, MGTS, structure, Svyazinvest) that enables gaining of undisputable leadership on the broadband Internet and fixed communication market in Moscow and significant strengthening of positions in the regions.
- MGTS set upon promotion of the broadband services on the mass market under its own brand name.
- Implementation of the complex program to upgrade infrastructure in Moscow began – increase in capacity of backbone networks up to 40 Gbps.
- First intraoffice Wi-Fi networks were built.
- New large-scale acquisitions in regions: Sochitelekomservis (leading alternative telephone operator in Sochi), YUG Digital Telephone Networks (Rostov region and Krasnodarsky Kray), Regional Technical Center (Khanti-Mansi autonomous region, Orenburg region).
- A strategic partnership agreement was concluded with Intel Corporation, world’s leading manufacturer of semiconductor components, to develop wireless broadband networks based on WiMAX. A decision was made to deploy mobile WiMAX network in Moscow.
2008. Intensive growth in Moscow and revolutionary break-through to regions
- Large-scale upgrade of the access network began (the last mile in Moscow based on the Fiber-to-the-Cabinet (FTTC) technology; a decision was made to digitize MGTS according to IMS (Integrated Multimedia Subsystem) pattern.
- COMSTAR-UTS built its own long-distance communication network, got operator selection codes (23, 28) and launched long-distance and international voice services in Moscow and regions of the country.
- The Company entered into a partnership agreement with FON Wireless Ltd (Spain) to develop an international wireless Internet access network in Russia powered by WiFi (COMSTAR-FON).
- In Armenia, the world’s first nation-wide wireless WiMAX network was launched.
- Acquisition of leaders of the alternative communication market in regions – Interlink Group (Ryazan) and Ural Telephone Company (Yekaterinburg and Sverdlovsk region).
- Decision was made to build up-to-date NGN network in Ukraine.
- Consolidation of COMSTAR-Direct paved the way for migration to the two-brand system – COMSTAR and MGTS – on the Moscow market.
- COMSTAR-UTS obtained operating control and then acquired STREAM-TV group who provides pay-TV and broadband services in 40 cities of Russia. Integration of all regional assets began based on COMSTAR-Regions, 100% affiliate of COMSTAR-UTS.
- The first social report of COMSTAR-UTS was published.
- COMSTAR was recognized as "Brand of the Year/EFFIE".
2009. Incorporation of the universal national operator on the Russian fixed communication market
- Trial operation of WiMAX network begun in Moscow.
- COMSTAR-UTS become a leader of the Moscow Internet access market both in terms of the number of subscribers (793 thousand) and customer satisfaction (research by Direct Info, Romir).
- Launch of IPTV on the mass market (MGTS)…
Today, COMSTAR – United TeleSystems is the largest multi-service operator providing telecom services to private and corporate customers. It operates in the Moscow region and 69 Russian cities, as well as in Ukraine and Armenia.
Striving for leadership, innovative technological approach, consistency in implementation of plans claimed – these are basic principles of COMSTAR-UTS business.