Federal Tariff Service Introduces New Tariffs for MGTS Subscribers

OREANDA-NEWS. January 19, 2010. “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 69 Russian cities, today announced that Moscow City Telephone Network (“MGTS”), Comstar’s 69.93% owned subsidiary, will introduce new tariffs for the local connection services and line rental from February 1, 2010. MGTS’ tariffs[1] will increase at an average rate of 10.3% in rubles.

Per-Minute Tariff Plan 

Combined Tariff Plan 

Unlimited Tariff Plan 

As at September 30, 2009, MGTS had 3.6 million active residential lines and 763 thousand active corporate lines (of which 511 thousand lines are used by independent corporate subscribers, 252 thousand lines are used by state-funded organizations). As at September 30, 2009, 50% of MGTS residential subscribers were on the unlimited tariff plan, 29% were on the per-minute plan and the remaining 21% were on a combination of the two plans. 15% of MGTS independent corporate subscribers were on the unlimited tariff plan, 6% were on the per-minute plan and the remaining 78% were on a combination of the two plans as at the end of the third quarter of 2009. 13% of state-funded organizations using MGTS voice services were on the unlimited tariff plan, 6% were on the per-minute plan and the remaining 81% were on a combination of the two plans as at the end of the third quarter of 2009.

[1] Tariffs for residential subscribers include VAT; tariffs for corporate subscribers are indicated without VAT