March 31, 2009, Moscow, Tyumen. COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announces that Regional Technical Center (RTC), the leading alternative telecom operator in Tyumen Region, a member of COMSTAR-UTS, has completed the multi-service fiber optic network in Tobolsk.

A subsidiary of COMSTAR-UTS opened its office in Tobolsk and started its own data communication network roll-out in Autumn 2008 using FTTH-based (Fiber-to-the-Home) NGN solutions (see link). The operator has started to connect its first corporate customers in Tobolsk. In the nearest future RTC also plans to enter the residential market. The residents of micro regions No. 7 and 9 of the city will be the first to enjoy COMSTAR-UTS services.

Thus, COMSTAR-UTS was the first to provide alternative state-of-the-art telecom services for Tobolsk users. The operator will propose a complete package of its telecom services for both individual and corporate customers: local, intra-zonal, inter-city and international voice communication, broadband Internet, virtual private networks (VPN), leased lines, design and building of engineering networks and communication facilities. At the first stage the customers will be able to enjoy digital telephony and broadband Internet. As the network expands, it will become possible to provide value-added services, such as HDTV (High Definition Television) as well as to increase Internet speed up to 10 Gbps.

Vladimir Alaev, General Director of RTC, gave the following comments regarding the situation: “It is not by chance that we chose Tobolsk, the ancient capital of Siberia, to develop our telecom network. First, up to now no competition was virtually available here in the market of fixed communications and Internet access. Second, thanks to the policy of local authorities and support of Tyumen Region Administration, the city sees active civil engineering process (with the houses of higher class), many social projects are being implemented, industrial facilities are being updated and enlarged. For example, a number of civil engineering companies in Tobolsk participating in the program aimed at relocation of the Tyumen Region residents from older and deteriorated houses, are now working at an increased rate to commission the facilities ahead of schedule. Within the framework of state-level program, an individual dwelling construction has been gathering its momentum. Tobolsk Heat Power Plant and Tobolsk-Polymer plant are being built to become the largest enterprise to produce polymers in Russia and in the world. That is why, apparently, in Tobolsk it is possible to successfully implement our capacity in the provision of hi-tech and competitive telecom services for both enterprises and residents. We are now present in only two dormitory residential regions, however, active development of the economics of the city opens perspectives of significant expansion for the subscriber base due to the growing demand of both individual and corporate customers for quality and up-to-date telecom services.”

Aleksey Kataev, TCO of RTC, pointed out the following: “FTTõ technology used by us to set up a metro access network is beneficial for both the client, and the operator. Virtually unlimited throughput capacity of optic fiber cable solves the problem of subscriber access to information recourses for many years to come. We bring optic cable to every customer, and we install active equipment right at the user’s premises. This allows to quickly increase both the scope of traffic consumed, and the range of services depending on the user demand and with no extra cost for update. The subscribers will have access to a large number of TV channels in superb digital quality and virtually any Internet access rate, video telephony and a great number of other services.”