October 1, 2009, Moscow, Ivanovo: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the largest operator of integrated telecommunication services in Russia and the CIS, informs that Ivanovo Communication Services Center of the COMSTAR-Regions (100% subsidiary of COMSTAR-UTS) Central Subsidiary launches a commercial pilot for over-the-air digital TV.

The company has acquired all the licenses and approvals needed to implement over-the-air digital TV broadcast in Ivanovo. This project includes digitizing of the existing MMDS (Multichannel Multipoint Distribution System). This will allow to substantially enhance the quality of TV signal, increase the number of broadcast channels from 22 to 33, extend the network coverage, introduce the e-guide and online account management, as well as prevent unauthorized watching using the signal encoding system.

Existing COMSTAR subscribers in Ivanovo connected via MMDS will get free set-top-boxes required to watch digital programs. The subscriber fee will remain the same. New users will be able to purchase the equipment and connect the digital multichannel TV service at attractive prices in the company’s offices and points of sale in the city.

Ivanovo Communication Services Center provides MMDS-based over-the-air TV primarily to people living in remote districts: Kohma, TEC-3, Melanzhevy Combinat and Rabochy Poselok. Currently, the number of households using COMSTAR cable TV services in Ivanovo exceeds 75,000, with approximately 6,500 of them using MMDS. MMDS subscribers can choose Classic or Basic package.

Viktor Koresh, Vice President for Regional Development of COMSTAR-UTS, General Director of COMSTAR-Regions, said: “We continue implementing the upgrade program for our networks in regions using both cable and over-the-air digital technologies to deliver the signal to customers. So far, there have been only a few projects of over-the-air digital TV in Russia. We are sure this service will be highly demanded.”

Anatoly Krainev, Director of the COMSTAR-Regions Central Subsidiary, added: “Migration to the digital format has multiple advantages for our existing and potential subscribers. First of all, this is enhanced quality of signal and wider range of broadcast channels with the prospect of selecting individual program packages in future. Besides, it will be possible to provide residential pay TV services in locations where there is no cable TV. As for us, migration to the digital format will allow us to cut MMDS networks operating costs and enhance the quality of our services. In the short term we are planning to double the number of subscribers connected to MMDS-enabled services.”