June 3, 2014

Internet Service Provider (ISP) from Dnepropetrovsk "Fregat" claims to have national status and has announced the buying-up of ISPs throughout Ukraine, said "UkrRudProm".

"Fregat" started 7 years ago in Dnepropetrovsk with the network size of 3 thousand subscribers. In 2013, with a customer base of more than 100 thousand and coverage of major cities of Dnepropetrovsk region, the company has entered into new regions, in particular Krivoy Rog and Zaporozhye.

At the end of May 2014 "Fregat" closed the deal on buying the operator "Mega Link" (about 60 thousand subscribers), after which its own subscriber base comprised about 200 thousand subscribers. In total, there were about 15 M&A transactions concluded, and at the moment, "Fregat" is present in 11 cities with a total population of more than 4 million people.

According to Vyacheslav Mishalov, one of the founders of "Fregat", new purchases are planned this year and negotiations are underway with approximately 10 operators working in Kiev, Odessa, Poltava, Zhytomir, and western Ukraine. The cost of acquisitions, as a rule, is estimated at one to two annual turnovers. The current goal of "Fregat" is to get 250 thousand of customers and become the top-5 ISP in Ukraine.

Anatoliy Frolenkov, the partner of the E&C Consulting Group believes that "Fregat" can enter the top-5 in the first half of the year ahead of "Datagroup" of Alexandr Kardakov. According to E&C estimates, by the end of the first quarter 2014 "Datagroup" served 190 thousand subscribers, and Vega (belongs to SCM) – 158 thousand subscribers.

According to a Unified State Register the owners of "Fregat" are: Grigoriy Gurtovoi (former head of the bankrupt "Aerosvit") – 33%, "Optima Cable" – 30% and other 6 minorities, including Vyacheslav Mishalov (son of Dnepropetrovsk businessman Dmitriy Mishalov).

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