April 10, 2009, Moscow, Ivanovo: COMSTAR – United TeleSystems (COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announces that by the end of Q1 2009 pay-TV subscriber base of STREAM-TV Ivanovo (part of COMSTAR-UTS) has exceeded 81,500.

STREAM-TV Ivanovo provides cable TV services and access to broadcasting systems. Besides, the branch provides the broadband Internet access services, and the number of broadband users with pay-TV subscriptions makes more than 7,500. The subscriber growth in Ivanovo was driven by data communication network upgrade and marketing strategy successfully implemented by the company.

In particular, since February 1, 2009, STREAM-TV Ivanovo has doubled the capacity of the external broadband Internet channel to provide high-quality broadband services. Besides, in 2008 STREAM-TV completed transport core upgrade to essentially increase its capacity and performance of communication channels. Anatoly Kraynev, Deputy Director General of STREAM-TV, Managing Director of Center Macro Region, says: “Presently, our company offers Ivanovo and Shuya subscribers an opportunity to experience Ethernet-enabled high-speed Internet. Connection of new households and upgrade of the existing network are carried out in strict compliance with the approved broadband development strategy based on Fiber-to-the-Building technology (FTTB). Simplified subscription procedure when it is required just to leave a request at the company’s web site or call to the customer care service, introduction of tariffs with no limitations on downloaded traffic (unlimited tariffs) and increased traffic volumes, paid as a part of monthly fee, (limited tariffs), allowed to attract a considerable number of new clients.”

Vladimir Anisimov, Director of STREAM-TV Ivanovo, added: “In 2008 we reorganized our service network in the Ivanovo region. New service centers were opened both in Ivanovo and in Shuya, in the most convenient locations in the city centers. All this helps not only to attract new clients, but also increases the loyalty of existing users.”

Recall that in September 2008 COMSTAR-UTS, the national fixed-line operator in Russia, took a complete operational control over STREAM-TV. In the end of last year COMSTAR-UTS completed acquisition of STREAM-TV operators offering cable TV, air TV and broadband Internet services in 40 cities of Russia, and has launched a large-scale restructuring of its assets in the regions.

For more effective control over regional business COMSTAR-UTS will create an asset consolidation centre – COMSTAR Regions to include all branches and affiliated companies of COMSTAR-UTS and STREAM-TV, operating in six Federal Districts of the Russian Federation: Central, North-Western, Privolzhsky, Southern, Uralsky, and Siberian. Restructuring is accomplished according to the principle “one macro region – one branch”. As the result a single operational integrated telecommunication company will be created.