Rostelecom OJSC: ROSTELECOM LAUNCHES 3G+ NETWORK IN FIVE REGIONS OF THE URALS FEDERAL DISTRICT UK Regulatory Announcement MOSCOW ROSTELECOM LAUNCHES 3G+ NETWORK IN FIVE REGIONS OF THE URALS FEDERAL DISTRICT Moscow, Russia – May 14, 2013 – Rostelecom OJSC (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY) (“the Company”), Russia’s national telecommunications operator, announces the launch of 3G+ networks in the Sverdlovsk, Kurgan and Chelyabinsk regions, in the south of the Tyumen region and in the Yamalo-Nenets Autonomous Area. This latest launch follows the recent introduction of 3G+ services in Perm Krai. Rostelecom subscribers will be able to use their smartphones and tablets to access internet services and experience faster data transfer speeds. Rostelecom’s 3G+ network was installed using HSPA+ technology, providing data transfer speeds of up to 21MB/s, with the possibility of upgrading the network to reach speeds of up to 42MB/s if demand requires. The 3G+ network is LTE-ready, so that only minor modifications will be required before the Company can roll out its 4G (LTE) network in the future. Thus, a modern, sustainable, efficient and multi-standard mobile phone network will be created, which will realise the advantages of all standards, resulting in high quality voice services and data transfer. At the first stage of the network’s development in the Urals, 1,020 new generation base stations were installed in five Ural regions, while almost 400 were built in Perm Krai. 3G+ network services are therefore available in all major populated areas of the five Ural regions and in Perm Krai. Ilya Vasketsov, Commercial Director of Rostelecom-Ural commented: “Following the launch of the 3G+ network, new possibilities and mobile data transfer speeds have been made available to Rostelecom subscribers. An important characteristic of our 3G+ network is the high usage of modern optical lines that run to the base stations themselves, which has been made possible due to our strong fixed communications network in all the Ural regions.” Rostelecom is constructing 3G mobile networks in 27 Russian regions. In total, the Company is planning to establish more than 8,000 base stations. Ericsson and Huawei are providing technical equipment and solutions for the project. 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 13.6 million subscribers. * * * 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 9.2 million fixed-line broadband subscribers and over 6.6 million pay-TV subscribers. As Rostelecom develops its mobile data networks, its position as a major mobile operator is growing with over 13.5 million currently subscribed to Rostelecom’s mobile voice services. 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 321.3 billion of consolidated revenues, RUB 118.6 billion of OIBDA (36.9% of revenues) and RUB 35.2 billion of net income for the twelve months ended December 31, 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: ROSTELECOM LAUNCHES 3G+ NETWORK IN FIVE REGIONS OF THE URALS FEDERAL DISTRICT
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