Announcing its third-quarter results late last week, Comstar, which provides voice and data services in Moscow and scores of other Russian cities, stated:
- We are reprioritizing our capital expenditure plans in light of the current market conditions and postponing less urgent projects to later in 2009 and beyond. We have already reduced our projected 2008 capital expenditure to approximately $360 million, which is well below the level originally anticipated, and we will also not exceed this level in 2009. As before, we expect to finance these investments from our existing funds and facilities.
And it's not just Comstar and Vimpelcom examining their outgoings in Russia: Mobile TeleSystems OJSC (MTS) (NYSE: MBT), which is in the midst of its 3G rollout, recently reduced its capex plans for the full year 2008 from $2.5 billion to $2.0 billion, a 20 percent cut achieved "through currency factors, engagement with suppliers to extract favorable payment terms, and delays in launching HSPA-enabled networks in Moscow." (See MTS Deploys Ericsson HSPA.)
— Ray Le Maistre, International News Editor, Light Reading