Rostelecom OJSC: Rostelecom Launches Its 3G Plus Network in St Petersburg UK Regulatory Announcement MOSCOW ROSTELECOM LAUNCHES ITS 3G+ NETWORK IN ST PETERSBURG Moscow, Russia – August 6, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that it has commercially launched the first segment of its 3G+ mobile network in St Petersburg. Rostelecom’s new mobile network complements the services that the Company already offers in St Petersburg, which currently are fixed telephony, broadband and interactive TV. In light of the growing demand for mobile data transfer services, Rostelecom’s 3G+ network was installed using the modern HSPA+ technology. This technology provides data transfer speeds of up to 21MB/s, compared to speeds of just 3.6MB/s provided by the first 3G networks. Rostelecom’s customers in St Petersburg now benefit from new mobile internet speeds, and have access to modern, interactive services via smartphones, tablets and USB-modems. The Company plans to upgrade its network to reach the maximum speed of up to 42MB/s in the future. Rostelecom is steadily growing the number of base stations the Group has in St Petersburg over the coming years, which will eventually allow the Company to achieve a high level of penetration in the region. It is important to note that the construction of Rostelecom’s mobile network is based on its powerful, high-capacity fibre-optic network, which allows the Company to fully unlock the capabilities of HSPA+ technology. Larisa Tkachuk, Senior Vice President and Commercial Director of Rostelecom, commented: “Launching a 3G+ network in St Petersburg, the birthplace of Russian mobile communications, is a significant event for Rostelecom. These are of course only the first steps, but we plan to dramatically improve coverage in the northern capital in the future. We look forward to receiving feedback from our first subscribers to help us to improve the network’s performance. We have placed a strong emphasis on data services when developing Rostelecom’s mobile business, since the majority of modern services are connected to the internet, including online shopping. Millions of St Petersburg residents actively use Rostelecom’s various household services, and we are now showcasing Rostelecom as a mobile phone operator.” As of August 2013, Rostelecom has already built and tested 3G networks in 22 regions. The Company plans to establish more than 8,000 base stations across the country. 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 to 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 9.5 million fixed-line broadband subscribers and over 6.8 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 77.1 billion of consolidated revenues, RUB 28.8 billion of OIBDA (37.4% of revenues) and RUB 6.4 billion of net income for the first three months ended March 31, 2013. * * * 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 Its 3G Plus Network in St Petersburg
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