FAS approves Sistema's Kosmos-TV deal

    MOSCOW, August 12 (Itar-Tass) -- Russia's Federal Anti-Monopoly
Service /FAS/ approved AFK Sistema's plans to consolidate 100 percent
shares of Russia's oldest satellite television operator - Kosmos-TV, the
authority's site reports.
    Presently, the holding owns 50 percent of shares, while Russia's
Television and Radio Broadcasting Network /RTRS/owns the other 50 percent.
    RTRS confirmed that they are negotiating with AFK Sistema an option to
sell the sates.
    "Now, all the documents are being verified at the property and media
authorities," RTSR told Itar-Tass-Telecom, adding that Kosmos-TV is not
profitable and requires additional investments, thus the asset "has become
a burden for RTSR."
    AFK Sistema has confirmed its interest in the shares of Kosmos-TV.
    "AS yet, it is too premature to speak about any details," AFK Sistema'
s head of press service Yulia Belous said.
    Kosmos TV was launched in 1991 and as of the first quarter of the past
year it was known to have only around 35,000 subscribers. Today the
company broadcasts more than 70 world leading channels in twelve
languages, including Russian terrestrial TV channels in the digital format.
    With Kosmos TV, Russian customers obtained an opportunity to watch
eight world-known TV channels in analog format, including the USA's major
news channel CNN.
    In 2000 the company began transition to more technologically-advanced and higher-quality digital broadcasting, with regards to its own content
as well.