OREANDA-NEWS. September 13, 2010. For the last years Ukrtelecom have been demonstrating stable growth in the Internet market in Ukraine. Successful development and promotion of ADSL-access to Internet OGO! allow the Company to be a leader in the broadband Internet market for rather along period of time and have proved that the development strategy accepted by the Company in 2005 appeared to be effective and well-defined.

"Mobile communications are pushing out fixed telephony in Ukraine as well as in the other countries. Revenues from fixed telephony services are gradually reducing since traffic capacity has migrated from fixed to mobile operators' networks. Ukrtelecom have set a challenge to expand effectively and render broadband Internet services all over Ukraine by flat and acceptable rates, – says Georgii Dzekon, Chairman of the Board of Ukrtelecom JSC. – We believed that promoting a strategically new service on the market we should be able to provide our subscribers with high quality Internet services and compensate for losses of the Company because of fixed telephony".

Ukrtelecom JSC launched the OGO! Service in Kyiv late 2005 and in 2006 the service be came available for the other residents of Ukraine. In many regional centers, urban communities and village seven nowadays OGO! gives the only chance for an average customer to get access to the high-speed Internet. Because of convenience, high-quality and accessibility of the service bundle, it became popular very soon. At the beginning of 2006 15.5 thousand of users subscribed the service and the annual revenue was about 25 million of hryvnias then at the end of 2009 Ukrtelecom numbered 843 thousand of the OGO! service bundle subscribers.The annual revenue from the OGO! service made 890 million of hryvnias in 2009. The total revenue amount earned by Ukrtelecom made almost 2.3 billion of hryvnias for the period from the service bundle launch in 2005 and till the early June 2010.

Growing number of OGO! service users, year over year, proves forecasts and calculations of the Company. As of the middle of June 2010, the OGO! high-speed service bundle joined together MILLION of users allowing the Company to be an absolute leader in the highly competitive broadband service market. Currently the Ukrtelecom's share on the Ukrainian marketis 35% as to its revenues (according to State Statistics Committee data) and 38% as to the number of subscribers (according to IKS-Consulting data).

To provide all the customers with high-quality services, Ukrtelecom, while creating the infrastructure for the broadband access, is updating its backbone and IP-networks, implementing new integrated services and progressively expanding channel carrying capacity. In 2005 the international channel capacity was 1.7 Gbps and currently it makes 120 Gbps. The total capacity of the National IP-network was about 2 Gbps in 2005 and now it is almost 300 Gbps.

Since high-speed Internet access services are becoming more and more popular and demand for the minthe market is still growing, this bus inessactivity is considered by Ukrtelecom as of the highest priority. The Company is actively deploying the above services to make the high-speed Internet access available to as much Ukrainian users as possible.