OREANDA-NEWS. Revenues of Sibirtelecom OJSC (“the Company”) without subsidiaries for the1st half of 2007 amounted to 12,866.3 million rubles, increased by 2,109.7 million rubles or 19.6% against the same period of 2006.

The main factors of revenue change in the reporting period were increase of subscriber base, intrazone and Internet traffic, development of cellular communications.

Revenues from rendering local connection services amount to 44.3% (5,700.1 million rubles) of the Company’s revenues. A substantial elements of the Company’s revenues are revenues from intrazone telephone communication services (2,583.8 million rubles) and interconnection and traffic transfer services (1,834.6 million rubles), 20.1% and 14.3% respectively. Revenues from document telecommunications services amount to 11.2% (1,446.3 million rubles), where 73.5%
- revenues from Internet access services. Revenues from cellular communications services amount to 4.0% (517.1 million rubles) of the Company’s revenues.
Compared to the same period of 2006 (without subsidiaries):

• increase of revenues from intrazone telephone communication services amounted to 885.0 million rubles or 52.1% due to coming into force principle “Calling Party Pays” since July 1, 2006 and increase of revenues from channel leasing;
• increase of revenues from rendering local connections services amounted to 742.0million rubles or 15.0%, which is attributed to the increase of subscribers base (number of basic telephone sets of parent company increased by 117.7 thousanditems or 2.9% and amounted to 4,232 items) and new tariff plans implementation since February 1, 2007;
• increase of revenues from document telecommunications services amounted to 500.5 million rubles or 52.9% that was mainly caused by increase of broadband access users by a factor of 4. As of July 1, 2007, the number of broadband ports amounted to 107 thousand items;
• increase of revenues from cellular communications services (without subsidiary business) amounted to 48.4 million rubles or 10.3% (number of cellular subscribers as of July 1, 2007 amounted to 466.1 thousands).

Compared to the same period of 2006 (without subsidiaries):

• increase of expenses related to services to communication operators (except for Rostelecom OJSC) amounted to 731.6 million rubles or 190.6%, due to change in relations between telecom operators according to regulatory legal acts in telecommunication branch (increase of expenses related to zone call termination according to coming into force principle “Calling Party Pays” since July 1, 2006);

• increase of expenses related to remuneration to employees and social deductions amounted to 369.6 million rubles or 9.8%. Major factor determining this increase was the growth of the average wage size according to situation on the labour market and quarterly assessments to reserve for yearly remuneration payment (according to account policy of the Company for 2007);

• increase of other expenses amounted to 200.5 million rubles or 21.5% mainly caused by increase of expenses for leasing (according to concluded leasing agreements for equipment delivery under the project “Universal service”), assessments to non-state pension fund, agent’s fees.

• amount of the charged fixed asset depreciation increased by 141.2 million rubles or 9.4%, in connection with an active investment policy of the Company directed to the communication network development.