Comstar UTS Manages Newly

Comstar-UTS , the telecommunications asset of Sistema, has begun restructuring, Kommersant reports. According to the company's CEO Eric Franke, a new management structure has been approved, which provides for the division into a corporate center solving strategic tasks and four business units engaged in operating activities. Comstar-Moscow will operate in the corporate segment of the capital, Comstar-Regions will operate in the same segment, but outside of Moscow. MGTS, as before, will provide telephony services in the market of private users, and MTU-Intel will focus on the development of broadband access and double play technology (Internet + TV).



State redundancy is inevitable. In Comstar-Moscow, out of 1.5 thousand people, 1.2 thousand will remain. In MGTS, where 16.2 thousand people are employed, there is a separate staff reduction program, and every year 10% of employees are laid off. Comstar-Regions and MTU-Intel do not have such programs.



According to Franke, the process of management restructuring will be completed by January 1, 2007.