The basis of the two-phase tariff increases is the decision of the Board of the RF Ministry of Antitrust Policy and Entrepreneurship Support passed on 12 October 2001.

The monthly residential subscriber fee will be raised as from 1 November 2001 up to 70 rubles and 1 January 2002 up to 80 rubles. The present maintenance costs per one subscriber number is 87 rubles. The last tariff increase for this category of subscribers took place on 1 February 2001.

OJSC MGTS preserves all benefits and soft terms applicable to particular brackets of Moscow citizens: the Great Patriotic War veterans, retired employees, disabled persons, etc. as specified by the federal and capital-city legislation. The Company will continue financing the entitlement payments all by itself.

The monthly state-budgeted institutions subscriber fee will be 85 rubles from 1 November 2001, and from January 2002, it will be 100 rubles a month. The charge for one-minute telephone call in excess of the fixed limit (which is 613 minutes per month) will remain the same, i.e. 14 kopecks. The previous tariffs raise relative to the state-budgeted institutions was introduced on 1 February 2001, and the tariffs have not been reconsidered since then.

Additionally, from 1 November 2001, the telephone installation fee will be raised for all user categories.