Rostelecom plans to rebrand after becoming IT company - Oseyevsky
SOCHI. Oct 12 (Interfax) - Rostelecom will rebrand itself after transforming itself into a 'digital technology' company, Rostelecom CEO Mikhail Oseyevsky told journalists.
"We believe that rebranding needs to take place when the very essence and structure of the company has gone through significant changes. We therefore plan to carry it out, but not until we turn into a digital technology company,' he said.
Rostelecom is currently preparing an updated strategy of development for the next five years. The strategy calls for transforming the company from a telecom operator to a digital service provider. The company expects to introduce the strategy to the board of directors by the end of the year.
Oseyevsky said that the document is in the final stages of being prepared.
"We have prepared the financial model. We have prepared a model for each of our business areas. Therefore I am completely convinced that we will present it by the end of the year. Management is working on this," he said.
Oseyevsky added that the new strategy expects to set aside a certain amount of money toward investments which needs to be harmonized with the company's dividend policy. Rostelecom's current dividend policy is in place until 2018, calling for payments amounting to at least 75% of free cash flow.
The last time Rostelecom carried out a rebranding was at the end of 2011. The company allocated 12 million rubles in direct investment to develop a new brand concept for the company.