April 2, 2010, Moscow, Tyumen, Dudinka: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading provider of integrated telecommunication solutions in Russia and the CIS, announces that the Siberian branch of COMSTAR-Regions (100% affiliate of COMSTAR-UTS) is launching construction of the fiber optic multi-service data network in the northernmost locality of the world  – Dudinka, Krasnoyarsk Krai.

In March 2010, COMSTAR-Regions Siberia completed the business project related to construction of the up-to-date data network based on FTTB (Fiber-to-the-Building) technology in Dudinka, Krasnoyarsk Krai. The project is scheduled to be completed in 3Q10.

The project provides for connection of both individuals and corporate customers. The operator intends to offer the whole range of telecom services to its subscribers: local, intra-zonal, intercity and international voice communication, broadband Internet, VPN and leased lines. Further upgrading of the network will enable Internet access at a rate of up to 10 Gbps as well as value-added services, such as High Definition Television (HDTV). Today, the company branch provides Dudinka residents with cable TV (CTV) services based on MMDS. The whole network of over-the-air and cable TV covers 99% of residential buildings (8,980 households), while the network service penetration rate is 47%.

Viktor Koresh, COMSTAR-UTS Vice President for Regional Development and Director General of COMSTAR-Regions, notes: “We continue to implement our program of enhanced geographical presence of the company in the regions of Russia and plans related to the development of Triple Play services (voice, data and video) in all the cities of presence. The project of FTTB network construction in Dudinka is a part of these plans.”

Vladimir Alaev, Director of COMSTAR-Regions Siberia, adds: “Our goal is to actively penetrate new cities of Siberia and to become leader on the telecom market among alternative operators. The Dudinka project will require prompt work of our units, as construction will be performed in the Polar region. FTTB-enabled data network will provide us with infinite possibilities for it further development. The network capacity will allow us to provide local residents and business units with high-quality voice and high-speed Internet as well as CTV services – all using the same cable. Besides, TV services quality will be enhanced, and the number of broadcast channels will increase.”