Quoting several unnamed managers from both companies, Vedomosti and AKTR report that the discussions are still at an early stage.
They add that many of ER Telecom’s transactions have not paid off and the company is now looking for new finding sources.
ER Telecom had revenues of R22.2 billion (€300 million) in 2015, while its net debt stood at R14.4 billion.
However, officially Megafon has said that it is not looking to buy ER Telecom but rather enter into a long term partnership.
Although ER Telecom does not have a presence in Moscow, it is the second leading broadband provider in Russia after Rostelecom, offering services to 2.84 million households as of the end of Q2.
Its overall shares of the broadband and cable TV markets in Russia are 12% and 13% respectively.
Meanwhile, Megafon’s only real presence in the fixed-line market is through its daugher company NetbyNet.