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North-West Telecom

February 8, 2007

North-West Telecom summing up first results of 2007 tariff campaign, offering users free switchover to “Unrestricted Use” plan

On January 31, 2007 North-West Telecom finished reception of additional agreements from subscribers who made their choice in favor of one of the tariff plans for local telephone communication service payment offered by the company and effective from February 1, 2007.

As of February 1, 2007 for NWT as a whole, the additional agreements on the selection of a local telephone connections payment system were returned by about 48% of the total number of individual subscribers entitled to switch to the time-based system of local connections accounting. Of these, 21.6% (755,000) chose the tariff plan with the time-based payment scheme; 24.6% (859,000) chose the combined payment scheme. Still, most of the individual users (53%)decided to stick to the “Unrestricted Use” tariff  plan.* In St. Petersburg, 14% of individual users chose the “time-based” tariff plan, and 13.2%, the combined tariff plan. Thus, an overwhelming majority of St. Petersburg’s users (over 72%) chose the “Unrestricted Use” tariff plan.

As predicted by North-West Telecom, the users’ migration from one tariff plan to another will last at least until the middle of the year, since the users will be choosing a payment scheme most favorable to them basing on actually served bills for local communication services. Supposedly, at least 40-50% of the company's subscribers will stick to their customary subscriber-type payment scheme (with the “Unrestricted Use” tariff  plan).

NWT users may switch from one tariff plan to another as many times as they wish, but not exceeding once a month, since the communication services accounting period is one month. The price of the “Tariff Plan Change” service is RUR 125 – 130, subject to the region, from February 1, 2007.**

North-West Telecom has enabled its subscribers to switch to the “Unrestricted Use” tariff  from any other tariff plan free of charge from February 1 on. This solution will noticeably reduce the subscribers’ costs when changing their tariff plans, and enhance the consumer value of the “Unrestricted Use” tariff  plan.

In addition, a special “Phone + Avangard high-speed Internet” package offer will become valid for “Unrestricted Use” tariff  plan subscribers from February 1, 2007. If an NWT user chooses the “Unrestricted Use” tariff  plan and uses the Avangard service (or gets connected to the Avangard service), such user will automatically acquire a package of two services, saving RUR 50 to RUR 260 a month subject to the region and the tariff plan chosen by the user for the Avangard service.

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* During its information campaign, NWT recommended that its users choosing a new payment system (time-based or combined tariff ) should sign an additional tariff selection agreement, and those who chose the subscriber-type payment scheme, i.e. the “Unrestricted Use” tariff plan, should not fill in or send any additional agreements to NWT, since in accordance with the Russian laws, the user shall, on default,  continue to pay for local telephone communication services under the existing contract from February 1 on  according to the subscriber-type payment system, which corresponds to the “Unrestricted Use” tariff plan.

** To change his/her tariff plan, the user should file an appropriate application at the nearest  NWT customer service center. For a subscriber to be switched over to a new tariff plan from the next month, the application must be received by NWT at least 10 days before the end of the current calendar month, since time is needed to enter the data into the accounting system. Otherwise, the chosen payment scheme will become valid from the first day of the second months after the month when the application was filed. (For instance, if a subscriber files the application on May 18, such subscriber will be switched over to a new tariff plan from June 1, and if a customer files the application on May 25, the new tariff will become valid no sooner than July 1).

 

 

 

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