SCM Building Telecommunication Empire?

The Anti-Monopoly Committee is reviewing SCM’s application for permission to buy Optima Telecom, the largest alternative fixed line operator in Ukraine. One month ago SCM acquired the third largest alternative telecom holding Farlep. According to the CEO of Ukrtelecom (UTEL: HOLD) Georgiy Dzekon, these activities suggest that SCM is targeting UTEL. Concorde Capital: No doubt the privatization of UTEL would generate synergies for SCM. However, SCM can hardly compete on equal footing with global telecommunication operators who could value UTEL much higher than SCM if the company obtains a G3 mobile license. In any case, the purchase of Optima Telecom will make SCM the most powerful alternative fixed line operator. In addition to fixed line providers, SCM has interests in the mobile operators Astelit and DCC.