Moscow, Russia – December 17, 2012 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that EniseyTelecom (“ETC”), a wholly-owned subsidiary of Rostelecom, successfully completed a test launch of its first 3G+ network in Krasnoyarsk in December. From early next year, ETC customers in this region will be able to take full advantage of a mobile internet service, which supports transmission speed up to 21 MB/s.

Rostelecom is building 3G networks in 27 Russian regions and expects to install over 8,000 base stations. Eriksson and Huawei have been selected as the network’s equipment suppliers and solutions providers. 

In-line with the Group’s installation schedule, ETC is installing 3G+ base stations and laying fibre-optic telecom cables to connect base stations, so that the quickest available data transmission speeds are ensured. The service provider is also commissioning equipment and upgrading switching systems and software. The 3G network equipment being installed in Krasnoyarsk Krai will support the HSPA+ advanced technology, which can maintain transmission speeds of up to 21 MB/s, with a possible increase of speed of up to 42 MB/s. By providing subscribers with high-speed data transmission, the Group will be able to offer its customers mobile TV, broadband internet access, audio and video streaming services.

The Group’s 3G+ network in Krasnoyarsk Krai is being built to be LTE-ready, so that the Company can deploy its 4G (LTE) network after making minor modifications to its existing 3G+ network. Rostelecom obtained a federal licence to build its LTE-network in June 2012.

Testing of the 3G+ network in Krasnoyarsk will continue until February 2013 and the Company will test voice and data services so that the network infrastructure is sufficiently set-up and prepared to meet future demands. Rostelecom expects to launch its commercial 3G network in Krasnoyarsk Krai in March 2013.

Dmitry Levin, CEO of ETC, commented: "We glad to report that over 80% of the Krasnoyarsk Krai will receive 3G+ network coverage immediately at the time of the network’s launch. The 3G+ network will be launched in all the major cities of the Krasnoyarsk Krai as part of first stage of the network’s development. This will see Krasnoyarsk, Norilsk, as well as Achinsk, Kansk, Minusinsk, Zelenogorsk, Zheleznogorsk, Lesosibirsk, Yeniseysk, Sosnovoborsk, Divnogorsk and Sharypovo all receive 3G+ coverage early next year.”

Rostelecom and its subsidiaries, NCC CJSC, BWC CJSC, ETC CJSC, Sky Link CJSC, Volgograd-GSM CJSC, AKOS CJSC and Wireless Information Technologies LLC, provide mobile services in 59 Russian regions to over 13.5 million subscribers.