Moscow, Russia – July 16, 2012 – Rostelecom OJSC (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that it will install over 8,000 base stations in 27 regions as part of the first stage of building a modern multi-standard mobile network. The network will offer all the advantages of existing technologies which are used to provide 2G, 3G and 4G wireless services.

The world’s leading manufacturers, Ericsson, Alcatel and Huawei, have been chosen as the main providers of equipment. The supplied equipment will be used to upgrade and increase existing network coverage, as well as to build networks in new regions, including Moscow and St. Petersburg. The networks will be deployed on an LTE-ready basis, which will facilitate a quick transition to 4G services with only minor modifications to the networks. All base station equipment will be supplied by the end of 2012, according to the agreed schedule. Construction and installation works are already under way in a number of regions.    

Ivan Zima, Vice President – CTO of Rostelecom, commented: “The installation of 8,000 base stations in nearly one third of the Russian regions will help us roll-out a mobile network with extensive coverage and enable us to provide high quality mobile services. This is in line with the Company’s strategy to strengthen its position in the mobile market and become a leader in the mobile data segment, by gaining 20% of the market share by 2015. Our most significant achievement will be the launch of the 3G network in Moscow in 2013. New network services will seamlessly compliment our LTE services offering, which will be launched in cooperation with Scartel in Moscow in autumn 2012, using the MVNO model.”