OJSC Svyazinvest was and continues to be an advocate of per-minute billing on local traffic as the fairest system of payment for quality telecom services.  Already widespread in most foreign countries, per-minute billing makes it possible to gain objective information on network traffic, design networks based on actual traffic loads, and enables the operator to be paid for the actual volume of services rendered. Once per-minute billing is phased in the network load will go down from 15 - 20%, which will make its possible, at minimum expense, to enter 1 mn new lines into service per year and considerably cut the installation waiting list in the near future.  

Regional market studies in the areas where per-minute billing has been introduced, refute the popular belief that per-minute billing will inevitably make telephone bills more expensive for most users. Under the current billing system tariff hikes are evenly distributed among all users irrespective of the amount of services they use.  This way the network load costs generated by small businesses working out of household phones are transferred to the lowest earning brackets of the Russian population. In addition, per-minute billing will be subject to state regulatory agencies, which implies that the state intends to provide protection to lower income subscribers.  

According to calculations made by OJSC Svyazinvest, the invariable component of the tariff plans should be no more than 30% of the base tariff (subscribers' fees), and one minute should cost up to 10 kopecks in Moscow (provided that there is no so-called "time-limit").   

MGTS's project to introduce per-minute billing, as its was proposed to the company's board of directors, has not met with the approval of OJSC Svyazinvest, as a shareholder of the Moscow operator (Svyazinvest holds a 28% blocking share in MGTS).  According to Svyazinvest, the method used to calculate the variable and invariable components needs fine-tuning, as do the Company's relations with special discount customers. Moreover, the per-minute billing system proposed by Svyazinvest offered a broader range of tariff options, which also contained special provisions for Internet users. 

In order to devise a better per-minute billing system, Svyazinvest has proposed setting up a joint panel with the Company, which includes both leading telecom specialists and Moscow municipal authorities.  Unfortunately, however, Moscow City Hall has declined this offer and refuses to enter into a dialog with telecom authorities.  

Moreover, rumors published in the media to the effect that a decision by the mayor of Moscow and the chairman of the board of directors of AFK Sistema was approved taking into account the opinion of OJSC Svyazinvest, are groundless. 

OJSC Svyazinvest would like to reiterate that it is ready and willing to start up and maintain a meaningful dialog with the legislative and regulatory authorities in Moscow on the future of telecom development in the Russian capital.