Rostelecom OJSC: ROSTELECOM TEST LAUNCHES ITS 3G+ NETWORK IN KRASNOYARSK
UK Regulatory Announcement
Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY),
Russia’s national telecommunications operator, announces that EniseyTelecom
(“ETC”), a wholly-owned subsidiary of Rostelecom, successfully completed a
test launch of its first 3G+ network in Krasnoyarsk in December. From early
next year, ETC customers in this region will be able to take full advantage of
a mobile internet service, which supports transmission speed up to 21 MB/s.
Rostelecom is building 3G networks in 27 Russian regions and expects to
install over 8,000 base stations. Eriksson and Huawei have been selected as
the network’s equipment suppliers and solutions providers.
In-line with the Group’s installation schedule, ETC is installing 3G+ base
stations and laying fibre-optic telecom cables to connect base stations, so
that the quickest available data transmission speeds are ensured. The service
provider is also commissioning equipment and upgrading switching systems and
software. The 3G network equipment being installed in Krasnoyarsk Krai will
support the HSPA+ advanced technology, which can maintain transmission speeds
of up to 21 MB/s, with a possible increase of speed of up to 42 MB/s. By
providing subscribers with high-speed data transmission, the Group will be
able to offer its customers mobile TV, broadband internet access, audio and
video streaming services.
The Group’s 3G+ network in Krasnoyarsk Krai is being built to be LTE-ready, so
that the Company can deploy its 4G (LTE) network after making minor
modifications to its existing 3G+ network. Rostelecom obtained a federal
licence to build its LTE-network in June 2012.
Testing of the 3G+ network in Krasnoyarsk will continue until February 2013
and the Company will test voice and data services so that the network
infrastructure is sufficiently set-up and prepared to meet future demands.
Rostelecom expects to launch its commercial 3G network in Krasnoyarsk Krai in
Dmitry Levin, CEO of ETC, commented: "We glad to report that over 80% of the
Krasnoyarsk Krai will receive 3G+ network coverage immediately at the time of
the network’s launch. The 3G+ network will be launched in all the major cities
of the Krasnoyarsk Krai as part of first stage of the network’s development.
This will see Krasnoyarsk, Norilsk, as well as Achinsk, Kansk, Minusinsk,
Zelenogorsk, Zheleznogorsk, Lesosibirsk, Yeniseysk, Sosnovoborsk, Divnogorsk
and Sharypovo all receive 3G+ coverage early next year.”
Rostelecom and its subsidiaries, NCC CJSC, BWC CJSC, ETC 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
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For more information please visit www.rostelecom.ru or contact:
Investor Relations Department
Tel. +7 (499) 995 97 80
* * *
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
*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
*the Company’s plans with respect to improving its corporate governance
*the Company’s expectations as to its position in the telecommunications
market and the development of the market segments within which the Company
*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
*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
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.
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