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North-West Telecom

February 1, 2007

Starting from 1st February, OJSC N.W.Telecom is reducing its rates for telephone installation and introducing a single "Intra-regional" rate

Starting from 1st February, new rates for the services of local and intraareal telephone communication, that were approved by the Order of the RF Federal Rates Service (FST) No. 262-s/3 of 14 November 2006, are taking effect in the Northwestern Federal District

Starting from 1st February, OJSC N.W.Telecom is reducing the limit rate for telephone installation (in premises without telephone communication) by 42%* for OJSC N.W.Telecom on the whole. This is first of all related to satisfaction of the demand for telephone installation (according to the operational data as of 01.01.2007, there are 32 telephone sets for every 100 residents in the Northwestern Federal District) and to the increasing competition.  

Starting from 1st February, the limit maximum rates for access to the telephone network are the same in all regions, amounting to 3500 roubles for individual subscribers and 3500 roubles for organizations (in St. Petersburg the rate for individual subscribers is 3000 roubles and that for organizations is 4000 roubles)**.

Besides, starting from 1st February, OJSC N.W.Telecom is reducing the rates for intraareal  connections by 15.5 % on the average. The new, unified rates for intraareal communication services do not depend on the distance of subscribers residing in one region (republic) from one another and amount to 2.25 roubles in the central branches (Vologda, Kaliningrad, Leningrad, Novgorod and Pskov Oblasts) and 2.50 roubles in the northern branches of OJSC N.W.Telecom (Arkhangelsk and Murmansk Oblasts, the Republic of Komi and the Republic of Karelia).

As before, OJSC N.W.Telecom offers a cheaper, privileged rate for intraareal connections to its subscribers on weekends and holidays, and at night on weekdays, which will be 30 % lower than the adopted limit rate.  In most regions the privileged rates for intraareal connections are applied from 6 p.m. till 8 a.m. on weekdays and round the clock on weekends and holidays.

Starting from 1st February, OJSC N.W.Telecom's subscribers residing in rural areas (about 8% of the subscriber base of OJSC N.W.Telecom), where time billing is not feasible, will have their local communication rates indexed by 11.9% for OJSC N.W.Telecom on the average.  Thus, the subscriber fee will amount to 210 through 240 roubles depending on the region.  In the settlements where time billing is feasible, OJSC North-West Telecom offers a selection of 5 rate plans to its subscribers***: "limitless", "time-based", and three "combined" rate plans (see press releases of 15.11.2006 and of 28.11.2006).

According to Oleg Popov, sales director of OJSC N.W.Telecom, "A peculiarity of the rate campaign of OJSC N.W.Telecom of 2007 is that OJSC N.W.Telecom, acting in strict compliance with the Russian laws, is introducing a new, socially just system of local telephone connections tariffing in the Northwestern Federal District, which provides subscribers with a choice of the optimum rate plan… Besides, starting from 1st February, unification of local and intraareal rates has been continued. E.g., now our subscribers will be able to make intraareal calls using the so-called "inrea-regional" rate, which has long ago become a standard for similar services provided by cell phone communication operators.  And the reduction of the "entrance ticket" – the telephone installation fee – and the possibility to choose rates for local communication will make OJSC N.W.Telecom's services even more affordable and attractive for clients."


* According to the Telecommunication Services Provision Rules, when a telephone is installed in premises with existing telephone communication, the installation rate is equal to the monthly subscriber fee.

** In this press release the rates for the population are given taking into account all taxes, and those for organizations are given without taking into account the 18% VAT.

*** They have been developed in accordance with the Federal Telecommunications Law, Provisions of the Resolution of the RF Government of 24.10.2005 No. 637 and the Procedure of Calculating Rates and Rate Plans for Local Telephone Communication Services (approved by the Decision of the Board of the RF Federal Rates Service (FST) of 05.09.06.).




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