22 January 2009, Moscow, Saint Petersburg. COMSTAR – United TeleSystems (COMSTAR-UTS OJSC, LSE: CMST), a major operator of integrated telecommunications services in Russia and the CIS, announces that the COMSTAR-UTS Saint Petersburg Branch has built and brought in commercial service a fixed-line zonal telephone communications network within Saint Petersburg.

COMSTAR-UTS obtained a license for operation of the intra-zonal communications node in Saint Petersburg from the Federal Supervision Service for Communications (FSSC) on 26 December 2008. As provided in the program for deployment of a next-generation multi-service telecommunications network (NGN) in Saint Petersburg, the operator laid more than 500 km of fiber optic communication lines (FOCL) during 2008, including installation of 7 submerged crossings across the river Neva, more than 35 access nodes in all districts of the city and POIs to the networks of major fixed-line communications operators in the North-West Region.

Investment in the project for establishment of the Branch’s Network totaled $ 7m in 2008.

 “Realization of the licenses for provision of intra-zonal communications services is an essential component of our regional strategy,” noted Viktor Koresh, Vice President for Regional Development, COMSTAR – United TeleSystems. The launch of a zonal communications network in Russia’s second-largest city will allow us to provide a comprehensive suite of fixed-line communications services, without engaging the outside operators. This will make it possible for COMSTAR-UTS to optimize the inter-operator inter-accounting costs and fortify its position on the wholesale traffic market, on the one hand, and offer our customers the unique bundled products in the field of telecommunications, including voice communications, broadband Internet access, data transmission, VPN, leased channels on attractive price terms, on the other hand.”   

“Commencement of the intra-zonal network operation has met in full the plans for growth of our Branch.  In the course of 2008, we built, as good as from ground up, a ramified transport/distribution network with a high coverage density, encompassing the entire city,” says Viktor Shmytinsky, Director, COMSTAR-UTS Saint Petersburg Branch. As a result of the launch of the intra-zonal communications network, COMSTAR-UTS has become a fixed-line operator in Saint Petersburg offering a comprehensive suite of local, zonal, DLD, and ILD telephony services. Achieving the leading positions in the capital of the North in terms of provision of Internet access and data services to telecom operators deserves a special mention. As to the corporate segment, we are focusing on large customers with a big volume of the telecom services in demand and the projects for implementation of integrated solutions for commercial real estate property.”