The Board of Directors of Uralsvyazinform approved at its October 7^th meeting the Master Plan for the reorganization of the company’s cellular business, and approved the Model for Restructuring the Core Business of its Subsidiaries.

The Master Plan contains a list of specific measures aimed at implementing a July decision of the BoD of Uralsvyazinform on reorganization of the company’s cellular business.  In accordance with this decision the operator’s subsidiaries Yermak RMS (GSM-900/1800), Tyumenruskom » (DAMPS-800/GSM-1800) and South-Urals Cellular Telephone (GSM-900/1800) are to be merged with Uralsvyainform by the end of 1Q 2005.

The Master Plan calls for developing the business development strategy for the cellular business of Uralsvyazinform, which will lay down the principles for implementing a unified tariff and marketing policy, promoting and selling services, advancing customer service and content services. The document also lists corporate actions to be taken for the purpose of restructuring the company’s subsidiaries and merging them with Uralsvyazinform. According to the Master Plan a functional operating structure is to be worked out for the unified super-regional branch of Uralsvyazinform which provides cellular services.

Commenting on the approval of the Master Plan, the CEO of Uralsvyazinform Vladimir Rybakin said: “Despite fierce competition Uralsvyazinform has managed to retain and intends to maintain its leadership position on the mobile market of the Urals region, and this is at the heart of our strategic challenge.  The company’s main competitive edge is the universality that we expect to achieve from the synergetic effect of merging the fixed line and mobile segments as well as IP services.

The BoD also examined and approved the Model for Restructuring the Core Business of its Subsidiaries. The document assesses the outlook for the development and strategy for managing subsidiaries that provide Internet access and data transmission services, fixed line, voice, cable TV and radio broadcasting.