Rostelecom OJSC (the "Group") (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia`s
national telecommunications operator, announces that it has successfully test
launched its first 3G+ network in Perm Krai. The Company is actively building
its network and from early next year, the Group`s 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. Ericsson and Huawei have been selected as the
network`s equipment suppliers and solutions providers.
The Group`s 3G+ network in Perm 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. In future, Rostelecom will build a multi-standard
network in Prikamye which will combine the advantages of 2G, 3G and 4G networks.
The Group expects to launch its commercial 3G+ network in Perm Krai by the end
of the first quarter of 2013. Rostelecom is the leading provider of mobile
services in Prikamye and the launch of its 3G+ network will further strengthen
its competitive position in the region. By providing high-speed data
transmission, subscribers` user experience is greatly enhanced, enabling them to
browse the internet, use mobile maps and navigation, use social networks, mobile
TV services, or simply when large volumes of data needs to be exchanged.
Rostelecom is building its 3G network in over 100 cities and towns of Prikamye.
As part of the first stage, the Company plans to install over 400 base stations.
The HSPA+ technology that Rostelecom uses to build its first network in Perm
Krai, supports transmission speeds of up to 21 MB/s, with a possible increase of
speed of up to 42 MB/s, which is why it is often referred to as a 3G+ network.
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.
For more information please visit www.rostelecom.ru or contact:
Investor Relations Department
Tel. +7 (499) 995 97 80
Rostelecom (www.rostelecom.ru) is Russia`s largest national telecommunications
operator with presence in all Russian regions. The Group is a universal operator
and undisputable leader of broadband and pay-TV markets in Russia with over 9
million fixed-line broadband subscribers and over 6 million pay-TV subscribers.
As Rostelecom develops its mobile data networks, its position as a major mobile
operator is growing with over 13 million currently subscribed to Rostelecom`s
mobile voice services. The Company currently has approximately 28 million local
fixed-line voice subscribers and it is the leader in the corporate and
government services segment. The Group is also an important innovator that
provides solutions in the field of medicine, E-Government, cloud computing and
Rostelecom was assigned a `BBB-` and `BB+` international credit ratings by Fitch
Ratings and Standard & Poor`s respectively, both with a `Stable` outlook. The
Group generated RUB 238.7 billion of consolidated revenues, RUB 94.0 billion of
OIBDA (39.4% of revenues) and RUB 30.6 billion of net income for the nine months
ended September 30, 2012.
* * *
Certain statements in this press release are forward-looking statements within
the meaning of the U.S. federal securities laws and are intended to be covered
by the safe harbors created thereby.
Those forward-looking statements include, but are not limited to:
* Management`s assessment of the Company`s future operating and financial
results as well as forecasts of the present value of future cash flows and
* the Company`s anticipated capital expenditures and plans to construct and
modernize its network;
* the Company`s expectations as to the growth in demand for its services, plans
relating to the expansion of the range of its services and their pricing;
* the Company`s plans with respect to improving its corporate governance
* the Company`s expectations as to its position in the telecommunications market
and the development of the market segments within which the Company operates;
* economic outlook and industry trends;
* the Company`s expectations as to the regulation of the Russian
telecommunications industry and assessment of impact of regulatory initiatives
on the Company`s activity;
* other statements regarding matters that are not historical facts.
Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:
* risks relating to changes in political, economic and social conditions in
Russia as well as changes in global economic conditions;
* risks relating to Russian legislation, regulation and taxation, including
laws, regulations, decrees and decisions governing the Russian
telecommunications industry, securities industry as well as currency and
exchange controls relating to Russian entities and their official interpretation
by regulatory bodies;
* risks relating to the Company, including the achievement of the anticipated
results, levels of profitability and growth, ability to create and meet demand
for the Company`s services including their promotions, and the ability of the
Company to remain competitive in a liberalized telecommunications market;
* technological risks associated with the functioning and development of the
telecommunications infrastructure, technological innovations as well as the
convergence of technologies;
* other risks and uncertainties. For a more detailed discussion of these and
other factors, see the Company`s Annual Report and the Company`s other public
Many of these factors are beyond the Company`s ability to control or predict.
Given these and other uncertainties, readers are cautioned not to place undue
reliance on any of the forward-looking statements contained herein or otherwise.
The Company does not undertake any obligation to release publicly any revisions
to these forward-looking statements (which are made as of the date hereof) to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required under applicable
Copyright Business Wire 2012