JSC COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST) has commenced provision of Code 496/498 local telephone communication services in the Moscow Region.

The number capacity allocated to COMSTAR-UTS under the said Codes, comprises 251500 numbers. The communication services are currently provided in the towns and settlements located in the vicinity of Moscow, i.e.: Vnukovo, Pirogovsky, Khimki, Gorki-10. It is planned that by the end of 2007 the said services will be launched in towns of Dedovsk, Lyubertsy, and proceed with provision of the services to the subscribers of town of Sergiev Posad using the expanded capacity.  

COMSTAR-UTS has been operating in the Moscow region since 2005, providing telecommunications services to the communication operators, corporate customers, individuals, including the high-end villa communities (in particular, in the Rublevo-Uspenskoye Shosse area). At present, the business structure in the Moscow Region comprises the Moscow Regional Branch, the Contrast-Telecom, Unitel and Port-Telecom Companies. It is planned that the said Companies will be affiliated to the Moscow Regional Branch at a later stage. Today, COMSTAR-UTS  is present in 20 districts of the Moscow Region.

“The Moscow regional market is Russia’s fastest growing market,” Dmitry Dronov, Director, COMSTAR-UTS Regional Branch, comments. “This year, we have embarked on the program for aggressive expansion into this market. Our plans envisage the construction of a transport backbone network in the Region, growth of the system encompassing the sales offices and service provision to individuals, realization of the conditions of License for provision of zonal communication services in the Moscow region. The construction of an NGN solutions-based transport backbone network that will cover all of the districts of Moscow Region by 2011, started.”

The work on engineering and installation of a fiber-optic network in the Dolgoprudny, Mytishchi, Shchelkovo, Balashikha, Zheleznodorozhny, Odintsovo and Krasnogorsk districts is currently underway. Radial FOCL are expected to be installed in 2008 in the direction of Sergiev Posad, Serpukhov, Kashira, Solnechnogorsk, Dubna, Ivanteevka, Zvenigorod, Ramenskoye.

Besides, COMSTAR-UTS also intends to pursue active work with the mass segment in some of the Moscow regional districts on deployment of telephony for new construction. Additional sales/services offices will be set up in such districts. Another segment targeted by COMSTAR-UTS for aggressive operations is the high-end villa communities. Provision of communication services to enterprises remains an important area of operations, which is relevant given the growth in business activities outside the Moscow Ring Road.

COMSTAR-UTS is planning to provide its services in all of the 72 municipal formations of Moscow Region by 2011 taking up 20% of the market.

Moscow Region is Russia’s third-most significant region next to Moscow and Saint Petersburg. Telephony service penetration does not exceed 26% and that of Internet BBA – 6%. Today, COMSTAR-UTS is in the leading position in the alternative segment in Moscow Region.