Rostelecom is the base on which the state plans to consolidate its various interests in the Russian telecom sector. The new company will be created through a merger of Rostelecom, seven regional fixed line operators and other small telecom companies. New Rostelecom will be the size of other major telecom blue chip stocks (MTS and VimpelCom Ltd) and it will join these companies and MegaFon as one of the four centers of consolidation in the Russian telecom industry.

By virtue of the merger with regional fixed line operators also operate in the mobile and broadband segments, Rostelecom will shift from being a purely long distance company to one of the largest integrated services providers in Russia.