AO Vologda Elektrosvyaz (merged with North-West Telecom)

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Vologda Elektrosvyaz is the sole telecommunications provider to most of the Vologodskaya Oblast, an industrialized region in Northern Russia. The company is an open joint-stock company with actively traded shares. It employed around 3,200 employees and operated 127,500 access lines by 1997. The company was valued at US$104 million (or $11.9 per common share) by 1997. The company's service area extends through the Oblast, except for the Cherepovets region and the surrounding areas (in which Cheropovetselekrosvyaz is the regional operator) with a population of 1.35 million. Vologda's principle lines of business include telephone and telegraph service, and cable radio broadcasting. Together with Rostelecom, the company provides connection to long distance and international access lines. The company was privatized in 1995, following the creation of Svyazinvest, during which the government's stake was transferred to this new holding (50.7%). The remaining stakes were traded actively, and most of the stakeholders are the employees of the company (29.6%) by 1997. Remaining stock holders were East Investment Company (4.7%), Italtel (7.6%), CS First Boston (4.4%) and Bonarco Ltd (35%). The company is operated by Svyazinvest. Over the next five years, the company planned to invest around US$10 million, financed by its profits. The company also holds 60% stake in Vologda Cellular Communications (a joint venture with Moscow Cellular Communications). Became a branch of JSC North-West Telecom in November 2002.