Nizhny Novgorod, September 2004: According to the order of the Federal tariff service of Russian Federation dated of 14.09.2004  N  73-?/2,  the tariffs for local telephone connections (monthly subscriber’s fee), provided by OJSC “VolgaTelecom” to the residential sector and organizations, are changed beginning from October 1, 2004. The new tariffs will be valid on the entire territory of OJSC “VolgaTelecom” activity. The limit tariffs for providing access (telephone installation) are not changed.

The prices are increased in accordance with RF Government resolution of October 11, 2001 ? 715, which stipulates increasing the tariffs for telecommunication services up to the level of their recoupment.

The prices for telecommunication services will be increased in all regions of Russia. The price increase was caused by increased prices for the services and production, which are indispensable for the telecommunication industry functioning (electric energy, cables, spare parts, rental of premises). Since 2003 the prices for telecommunication services were not changed, which resulted in the fact that the prime cost of local telecommunication services rendering was higher than the tariffs for them.  

Upon average OJSC “VolgaTelecom” tariffs for the residential sector were increased  by 26,2 percent (by comparison:  for OJSC “CenterTelecom” the increase amounted to 36,5%, for OJSC “North-West Telecom”  – 33,3%,  in the north - from 38,5 up to  50%). For organizations the increase will amount to 30,1%.

Tariffs for providing local telephone connection	Current tariff rate	New tariff (since October 01, 2004.)
Kirov branch	110 rubles	145 rubles
Branch in the Republic of Maryi El	115 rubles	145 rubles
Branch in the Republic of Mordoviya	120 rubles	150 rubles
Nizhny Novgorod branch	130 rubles	160 rubles
Orenburg branch	115 rubles	145 rubles
Penza branch	110 rubles	145 rubles
Samara branch	120 rubles	160 rubles
Saratov branch	130 rubles	160 rubles
Branch in the Republic of Udmurtiya	120 rubles	150 rubles
Ulyanovsk branch	120 rubles	150 rubles
Branch in the Republic of Chuvashiya	110 rubles	145 rubles

Note:  tariffs for the residential sector include value-added tax.

All allowances for providing local telephone connection and telephone network access are retained!

Besides, according to “Telecommunication development concept” adopted by RF Government in 2000, OJSC “VolgaTelecom” carries out DLD services tariff balancing in respect of customer categories. As the result, since October 1, 2004 DLD tariffs will be reduced in 5 branches of OJSC “VolgaTelecom”.