October 23, 2006 at 16:57Missing Sky Link could cost Sistema $ 200 million
If Sky Link does not connect another 100,000 subscribers by the end of the year, the company can only have one owner. According to Vedomosti , AFK Sistema will be forced to spend $ 200 million on the repurchase of a 50% stake in Sky Link, now owned by Carmarthen. This payment is considered as compensation for the losses of the foreign partner, however, as was said, it can be avoided if the mobile operator nevertheless fulfills its business plan.
According to the agreement between Sistema and Carmarthen, another compensation option is possible. If Sky Link does not achieve “certain quantitative goals” by the first half of 2007, instead of buying out 50% of the shares, Sistema can pay a partner a percentage of the amount of $ 200 million - such that it corresponds to the degree of deviation of the achieved indicators from those that were scheduled. Note that the share of Carmarthen in the enterprise will remain. According to Jeffrey Galmond, the head of this company, the results will be verified against the planned shareholders in February-March 2007.
So far it is known that over the 10 months of this year, Sky Link managed to connect about 90,000 new subscribers, and two and a half months before the end of the period, it is necessary to “reach” another 100,000. The task is set, according to the director of public relations of the operator Olga Pesterova included a doubling of the number of subscribers by the end of 2006, while maintaining the average account per client / ARPU / at a level not lower than $ 50 per month. Now the average ARPU of the company is $ 58 dollars, and in Moscow - $ 62 per month. It is reported that last year the operator served 304,566 subscribers.
But, nevertheless, Sky Link expects to fulfill the plan. According to experts, connecting 100,000 subscribers before the end of the year is a very difficult task, but feasible. “In the fourth quarter, mobile operators usually manage to sell significantly more contracts than in the previous ones,” Pesterova adds. She also drew attention to the good sales dynamics of the recently launched Turbo tariff, aimed at active Internet users. In addition, the company entered the regions, and before the end of the year promises to open several more networks.
According to the agreement between Sistema and Carmarthen, another compensation option is possible. If Sky Link does not achieve “certain quantitative goals” by the first half of 2007, instead of buying out 50% of the shares, Sistema can pay a partner a percentage of the amount of $ 200 million - such that it corresponds to the degree of deviation of the achieved indicators from those that were scheduled. Note that the share of Carmarthen in the enterprise will remain. According to Jeffrey Galmond, the head of this company, the results will be verified against the planned shareholders in February-March 2007.
So far it is known that over the 10 months of this year, Sky Link managed to connect about 90,000 new subscribers, and two and a half months before the end of the period, it is necessary to “reach” another 100,000. The task is set, according to the director of public relations of the operator Olga Pesterova included a doubling of the number of subscribers by the end of 2006, while maintaining the average account per client / ARPU / at a level not lower than $ 50 per month. Now the average ARPU of the company is $ 58 dollars, and in Moscow - $ 62 per month. It is reported that last year the operator served 304,566 subscribers.
But, nevertheless, Sky Link expects to fulfill the plan. According to experts, connecting 100,000 subscribers before the end of the year is a very difficult task, but feasible. “In the fourth quarter, mobile operators usually manage to sell significantly more contracts than in the previous ones,” Pesterova adds. She also drew attention to the good sales dynamics of the recently launched Turbo tariff, aimed at active Internet users. In addition, the company entered the regions, and before the end of the year promises to open several more networks.