JSC "COMSTAR - United TeleSystems" today announced the signing of a cooperation agreement between OJSC Sheremetyevo International Airport ("MASH" or "The Airport") and CJSC PortTelecom ("PortTelecom"), a subsidiary of Comstar-UTS. The agreement covers a range of activities, including the development, construction and operation on a concessionary basis of a modern broadband and multimedia telecommunications network on the MASH territory.

Commercial concession arrangements are one of the latest trends in the Russian market, where this internationally accepted practice is actively gaining ground as a very efficient form of partnership. The increasing number of commercial concession projects is expected to have a positive impact on Russia's economic development, especially in sectors such as technology and telecommunications.

Participation of one of the leading telecom carriers in the strategic asset in the framework of the concession practice adopted by MASH would ensure the Airport's leadership in providing access to cutting-edge information technology systems.

This agreement serves as a new landmark in cooperation between the two companies, which have a 10 year-long history of working together.
As part of the agreement, joint steps are already being taken to enhance and modernize the IT and telecom infrastructure on the MASH territory, especially with regards to its telephone and payphone facilities.

MASH plans to deploy an extensive 1 Gbps multi-protocol data and IP telephony network, as well as digital TV and Wi-Fi Internet access with payment cards. Numerous facilities within the airport territory will be linked into one corporate network based on VPN circuits, which will enable the applications and ensure the quality of service (QoS) parameters committed to by the operator.

"The provision of telecom services under this scheme will allow for the gradual upgrading of the existing network of JSC Sheremetyevo International, while offering the new features and ensuring the agreed upon quality standards," said Igor Pikuzo, CEO of CJSC PortTelecom.

In the long-term, the entire telecommunications network of Sheremetyevo International Airport and its auxiliary facilities will be upgraded, including the hotels, offices and other facilities located on the territory. This will enable the Russia's largest airport to operate on the same level as its other international peers in terms of both QoS and technology.

"The introduction of concession principles into the operation of the Airport's telecommunications will serve several purposes. Firstly, the airport will create equal competition opportunities amongst different telecom carriers, allowing them to access our infrastructure and provide their services on our territory. Secondly, it allows us to control compliance with high quality standards," said Mikhail Vassilenko, CEO of OJSC MASH. "This way we can ensure that the leading telecom carriers are present at this strategic asset and thus we can meet all the telecommunications needs of passengers, airlines, goods consignors and of our other clients," Mr. Vassilenko concluded.