On April 16, 2003 Ministry for Antimonopoly Policy of Russian Federation approved the concept of tariff policy devised by Uralsvyazinform for 2003.

According to the concept the core targets of the company's tariff policy in 2003 are to withdraw from the principles of cross-subsidization and align tariffs for local telephony and ILD/DLD telephony inside the region and between different client groups.

In particular, the approved concept contains the following points:

• Beginning with May 16, 2003 the tariffs for domestic long-distance telephony services in Perm, Sverdlovsk, Chelyabinsk, Kurgan regions and in the southern part of Tyumen region are to be aligned up to the same level at each direction (zone). At the same time the tariffs in Perm, Chelyabinsk, Kurgan regions and in the southern part of Tyumen region are to be decreased depending on the region and zone. The tariffs for domestic long-distance telephony in Khanty-Mansyisky and Yamalo-Nenetski Autonomous Districts are to be aligned with each other in both directions (zone).
• ILD/DLD tariffs for budgetary organizations are to be aligned with ILD/DLD tariffs for businesses. In future the tariffs for organizations will be set at a level regardless the form of financing.
• Monthly tariffs for local fixed-line services in Perm, Sverdlovsk, Chelyabinsk, Kurgan, and Tyumen regions are to be aligned in two stages. The first stage starting on May 16, 2003 will see the tariffs increase up to 110 rubles per month for residents, and 160 rubles per month for organizations. The subsequent stage (August 1, 2003) implies an increase up to 130 rubles for residents and 175 rubles for organizations. The tariff increase will also cover Khanty-Mansyisky and Yamalo-Nenetski Autonomous Districts, where the tariffs will be aligned with each other and rise by approx. 30% and 25% for residents and organizations respectively.

Such tariff policy aims to ensure higher profitability of local wireline services. Importantly, cutting ILD/DLD tariffs to a level that is economically reasonable will essentially contribute to company's competitiveness on long-distance corporate market.