Larger and hopefully more efficient companies will be more attractive to domestic and foreign investors. The new regional company will be centered around the Electrosvyaz Moscow Region and will unite 18 Svyazinvest-controlled companies from Bryansk, Vladimir, Tver, Ivanovo, Kaluga, Kostroma, Ryazan, Smolensk, Tula, Yaroslavl,Oryol, Belgorod, Voronezh, Kursk, Lipetsk, and Tambov. Svyazinvest-controlled Central Telegraph, another major player in the Moscow market, will not become a part of the consolidated company. Industry experts believe that Svyazinvest does not want to dilute the Central Telegraph value by including it in the consolidated company. If neither MGTS nor Central Telegraph join, the new company's ability to provide telecommunications services in the city of Moscow will be limited and thus its attractiveness to investors significantly reduced.
Many regional governors oppose the restructuring plans as they expect a loss in tax revenue.
Most taxes will be paid according to the place of a company's headquarters. For example, some taxes that are currently paid to the regional budgets of Kamchatka and Sakhalin under the new scenario will be transferred to Vladivostok. General Director Yashin is trying to find a compromise decision that would bring regional governors to his side. Regional operators interviewed for this report also expressed concern about resource allocation. They anticipate more resources to stay in the headquarters at the expense of telecommunications network development in other regions.