Russian mobile operator Rostelecom is reportedly keen to acquire Megafon, according to reports in the country.

CNews writes that the potential deal is being discussed at government level.

State-owned Rostelecom already owns another Russian mobile operator in Tele2, and is the company's sole shareholder. Originally founded in 1993 and now owned by Alisher Usmanov's holdings (USM), Megafon is one of the largest telecom operators in Russia.

According to the report, the potential acquisition of Megafon could cost Rostelecom 616 billion rubles ($8.7 billion), with the article citing Finam analyst Leonid Delitsyn.

According to USM, Rostelecom has shown an interest in buying the company in the past, while CNews says that Rostelecom received approval from the authorities at the end of last year to buy Megafon.

However, the valuation of a potential deal may be impacted by Veon's plans to sell its Russian VimpelCom business. The Russian government recently opposed this deal, with it sent back for revisions.

Veon's plans to sell VimpelCom are thought to provide a spanner in the works as Delitsyn notes that the time is currently good for buying an operator since the unavailability of telecoms equipment reduces the cost of the asset.

Last year, Rostelecom launched an Arctic data center in Murmansk, Russia, in what the company said was its first facility built in the Arctic zone of Russia; located in Murmansk Oblast, in the far northwest part of the country close to Finland.