On April 8th, 2002 the Ministry of Antitrust Policy and Business Support of the Russian Federation (MATP of Russia) decided to grant the requests of affiliation with OJSC North-West Telecom of eight traditional operators of the North-West:
1. JSC Artelecom, Archangel Oblast
2. JSC Elektrosviaz, Kaliningrad Oblast
3. JSC Murmanelektrosviaz
4. JSC Elektrosviaz, Republic of Karelia
5. JSC Novgorodtelecom
6. JSC Elektrosviaz, Pskov Oblast
7. JSC Cherepovetselektrosviaz
8. JSC Elektrosviaz, Vologda Oblast
Today, on April 11th, 2002, the appropriate documents (opinions) were obtained from the Ministry.
The Ministry requires that the North-West Telecom should ensure equal terms of communication services (such as traffic passing) and of access to its networks for all telecommunication operators, whether insider entities of the Company or not. Updating and development of networks, in particular those in remote and rural communities, are also required.
Besides, the legal entities offering only such communication services that are not government-regulated shall, subject to approval by MATP, withdraw from the North-West Telecom by separation or splitting up within six months from the date of affiliation.
According to Nikolai Bredkov, Deputy General Director (Corporate Governance), OJSC North-West Telecom, the Company will fulfill all the requirements set by MATP of Russia as it should. He added, however, that the requirement of separation of non-regulated services from the Company would need a detailed analysis and joint effort with the Ministry in order to find a common approach to its implementation.
Therefore, the North-West Telecom is now enabled to proceed to the next stage of the reorganization, i.e. preparation of an issue prospectus and stock issue decisions. These documents will be reviewed by the Board of Directors at its session late in April.
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