Rostelecom OJSC: Statement re ROSTELECOM LAUNCHES ITS FIRST COMMERCIAL 3G NETWORK UK Regulatory Announcement MOSCOW ROSTELECOM LAUNCHES ITS FIRST COMMERCIAL 3G NETWORK Moscow, Russia – November 22, 2012 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that the Group has fully launched its first commercial 3G+ network in the Irkutsk region, through the Group’s subsidiary, Baikalwestcom CJS (BWC). Rostelecom is planning to launch 3G networks in 26 Russian regions in 2013. Pavel Zaitsev, Senior Vice President of Rostelecom, commented: "Our subsidiary, Baikalwestcom, has historically been a regional mobile market leader, and the launch of this next-generation network will further strengthen its position. All of our mobile subscribers in the Irkutsk region will now benefit from a significantly enhanced user experience using our 3G+ infrastructure and our high-speed Internet access when surfing the web, browsing social networks, and viewing video content. Customers can now access these services anywhere using their smartphones, tablets or USB modems on their laptops. Since the network’s test launch mobile data traffic has almost doubled and we are confident that demand for mobile Internet will continue growing rapidly thanks to our competitive tariff plans for this service.” The HSPA+ technology that we used to build our first network in the Irkutsk region, supports transmission speeds of up to 21 MB/s. The network is therefore 3G+, as the first 3G networks in Russia only supported transmission speeds of up to 3.6 MB/s. The Group has completed the installation of over 300 base stations. Rostelecom’s 3G+ network is now available across several of the Irkutsk region’s cities and towns, providing access to 70% of the region’s population. The network will be further expanded in the first quarter of 2013. Prior to the network’s launch, Rostelecom prepared special rates and Internet traffic packages to attract new subscribers to join the network and to reward existing customers. Konstantin Motlyakh, CEO of BWC, added: “Over 500,000 of BWC’s subscribers use mobile Internet via our 2G GSM network. With the launch of our 3G+ network, subscribers will be able to explore new possibilities using faster mobile data transmission. The quality of the network, its capacity and transmission speed will most definitely increase our subscriber numbers and mobile data traffic.” Rostelecom and its subsidiaries, NCC CJSC, BWC CJSC, ETK CJSC, Sky Link CJSC, Volgograd-GSM CJSC, AKOS CJSC and Wireless Information Technologies LLC, provide mobile services in 59 Russian regions to over 13.5 million subscribers. * * * For more information please visit www.rostelecom.ru or contact: Investor Relations Department Tel. +7 (499) 995 97 80 email@example.com * * * Rostelecom (www.rostelecom.ru) is Russia’s largest national telecommunications operator with presence in all Russian regions. The Group is a universal operator and undisputable leader of broadband and pay-TV markets in Russia with over 9 million fixed-line broadband subscribers and over 6 million pay-TV subscribers. As Rostelecom develops its mobile data networks, its position as a major mobile operator is growing with over 13 million currently subscribed to Rostelecom’s mobile voice services. The Company currently has approximately 28 million local fixed-line voice subscribers and it is the leader in the corporate and government services segment. The Group is also an important innovator that provides solutions in the field of medicine, E-Government, cloud computing and education. Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and Standard & Poor’s respectively, both with a ‘Stable’ outlook. The Group generated RUB 238.7 billion of consolidated revenues, RUB 94.0 billion of OIBDA (39.4% of revenues) and RUB 30.6 billion of net income for the nine months ended September 30, 2012. * * * Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and are intended to be covered by the safe harbors created thereby. Those forward-looking statements include, but are not limited to: *Management’s assessment of the Company’s future operating and financial results as well as forecasts of the present value of future cash flows and related factors; *the Company’s anticipated capital expenditures and plans to construct and modernize its network; *the Company’s expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing; *the Company’s plans with respect to improving its corporate governance practices; *the Company’s expectations as to its position in the telecommunications market and the development of the market segments within which the Company operates; *economic outlook and industry trends; *the Company’s expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives on the Company’s activity; *other statements regarding matters that are not historical facts. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include: *risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions; *risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies; *risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company’s services including their promotions, and the ability of the Company to remain competitive in a liberalized telecommunications market; *technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies; *other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company’s Annual Report and the Company’s other public filings. Many of these factors are beyond the Company’s ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws. Contact: Rostelecom OJSC
Rostelecom OJSC: Statement re ROSTELECOM LAUNCHES ITS FIRST COMMERCIAL 3G NETWORK
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