OREANDA-NEWS. On 27 June 2008 “COMSTAR – United TeleSystems” JSC, the leading integrated telecommunications operator in Russia and the CIS, announced its plans to build a new generation data transport network in Moscow. The overall investment in the project will amount to approximately US\\$ 10 million during 2008.

The networks of Comstar subsidiaries MGTS and Comstar-Direct will be combined to enable the introduction of a “supercore”, which will form the basis of the data transport network. The existing network “ring” structure will be developed into a “double star” structure. The network will be based on Dense Wavelength Division Multiplexing (“DWDM”) technology. Cisco routers will therefore be used to support a “supercore”, which will include the most productive and large-scale model of Cisco’s CRS-1 type routers. SITRONICS will provide, install and activate the Cisco routers, whilst ECI will provide, install and activate the DWDM equipment. The key stages of the project are expected to be completed in September 2008.

This network modernization will enable an increase in capacity from 40 Gigabits per second to 400 Gigabits per second. Comstar will also create a unified connection point to connect the Moscow network to the Group’s regional operations, as well as third party networks, and Comstar will introduce an integrated management and monitoring system.

Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: “This project is being implemented in line with our strategic objectives to have a 50% share of the Moscow broadband internet market by 2011 and to reorganize our organizational and operating structures. It will also reduce our ongoing capital expenditure on Group network support and development in Moscow.”

The network modernization is being implemented in tandem with the MGTS’ “last mile” modernization project commenced in February 2008. Within the framework of the 2-year modernization programme, MGTS will use fiber-to-the-curb technology to install fiber from automated telephone exchanges to the curb, and will also move the DSLAMs closer to subscribers homes (to the curb) and replace ADSL equipment with ADSL2+ without the need to make any changes in  subscribers’ homes. The data transmission speed of the modernized parts of the network will increase from 6 Megabits per second to 24 Megabits per second.