OREANDA-NEWS. May 11, 2007.  Uralsvyazinform (RTS and MICEX: URSI.URSIP, ADR: UVYZY/UVYZYP) hereby releases its unaudited and unconsolidated operating and financial results for January-March 2007 in accordance with Russian accounting standards.
Q1 revenue in the cellular communication segment with GSM-900/1800 standard (Utel/Utel trade mark) rose 19.8% compared to the same period in 2006 to Rub 2.7 bln. This trend was impacted by the following factors:

- rise in the number of cellular subscribers by 17.9% to 4,464,600;

- ARPU (average revenue per user) in Q107 went up by 9% to Rub 230 (Rub 211 in Q106).

 
Local voice  28.0% of revenue

In the January-March quarter revenue rose 5.3% in the local voice segment to Rub 2.6 bln. This trend was impacted by the following factors:

- the introduction of new tariffs and tariff plans for local voice service as of February 1, 2007; revenues from provision of subscriber lines and local telephone connections rose 10% to Rub 2.3 bln.

- increase of 76,600 in the number of main telephone lines (+2.0% vs. Q106 results).

- lower revenue from connection of main telephone lines (+4,600 in Q107).

 
Services provided to telecom operators  14.3% of revenue

In the January-March 2007 quarter revenue from services provided to telecom operators rose by 0.1% to Rub 1.3 bln. This trend was impacted by the following factors:

- the introduction of new interconnect and traffic transmission rules for which tariffs were established by Rossvyaznadzor (the Russian Federal Telecom Supervisory Agency) in June 2006.

- lower compensatory surcharges for operators between LD and ILD calls as of February 1, 2007 (as part of package tariff changes).
Intrazonal telephone traffic  12.9% of revenue

In the January-March 2007 quarter revenue in the intrazonal segment rose by 09.7% to Rub 1.18 bln.  This trend was impacted by the following factors:

 
- the introduction of the Calling Party Pays (CPP) principle as of July 1, 2006, whereby calls from household lines to cellular phones are equated with intrazonal telephone calls with an additional fee charged (455.4 mln min. in Q107);

- a 15.3% reduction in outgoing intrazonal traffic from fixed line subscribers to fixed line subscribers (159.7 mln min. in Q107)Datacom and Internet 8.4%

In the January-March 2007 quarter revenue in the VAS segment (broadband and switched Internet access, datacom, intellectual network services, etc.) rose by 65.4% to Rub 773.6 mln.  This trend was impacted by the following factors:

- a 110% rise in datacom traffic to 354 Tb;

- a 32.5% increase in broadband Internet hookups since the beginning of 2007 to 152,000 (vs.   115,000 ports as of January 1, 2007).

- a 4.6% decline in dial-up Internet access to 556.6 mln min.