ER-Telecom plans to become the leading cable operator in Russia by 2014, according to its CEO Andrei Senerikov.
In a wide-ranging interview with RBC Daily, he said 2009 was the first year the company broke even, with a net margin of 25%, though its growth was lower than in previous years. At present ER-Telecom claims a 7% share of the broadband segment and 8% of the cable TV market in Russia.
Focussing on expanding into 90 cities with a population of over 200,000, it aims to raise its market share to 20% by 2014, achieving a capitalisation of up to $5 billion (€3.58 billion) and claiming 10 million subscribers.
ER-Telecom currently has a presence in 17 towns and cities and is the market leader in 12, with shares of between 35-60%. Investment for its expansion will be from its own resources and outside investment, in the latter instance raising up to $500 million.
Western investment companies are understood to be interested in ER-Telecom, which may look to secure the $500 million in stages rather than all at once. ER-Telecom is also looking into the possibility of holding an IPO.