In total there are about 1500 cable TV players in Russia. The largest four: National Telecommunications (owned by Rostelecom), MTS, Akado, and ER-Telecom account for two thirds of total subscribers. MTS has been very active on the acquisition market since it bought another large cable TV player, Multiregion, in July 2010 (paying $123.5m, excluding debts). During the last 12 months, the company bought a few smaller cable TV players, including Inteleca (operating in the Altay region for Ru545.8m - €13m); Infocentre in Kurgan (for Ru435m, about €10.3m); and Tula-based Altair for over Ru680m (some €16m).

Consolidation of the cable TV market is also progressing thanks to incumbent telco, Rostelecom, which, after acquiring National Telecommunications at the beginning of 2011 is planning to integrate all of its cable TV operations under one brand. ER-Telecom, which prefers to roll-out its own networks than to make acquisitions, has recently found a new investor - private group Baring Vostok bought 10 per cent of the operator's shares for $80 million earlier this year. The last of the big four, Akado, providing services in Moscow, St. Petersburg and Yekaterinburg, may soon be sold. After Rostelecom's negotiations regarding the company's buy-out ended without an agreement, a telco, Telia Sonera-backed Megafon, started talks with Akado's owners and is now reported to be close to signing a deal. The acquisition of Akado would not only allow Megafon to considerably increase its pay TV subscriber basis, but also would strengthen its position in the Internet market in Moscow, where it recently bought an ISP, Net By Net. Russian cable TV is growing well in terms of subscribers, however, the penetration of digital TV services is still relatively low, reaching only about 8 per cent of total cable TV homes by mid 2011. The demand for digital TV and additional TV services is relatively low, as price remains the major driver of market growth.