March 4, 2009, Moscow, Saratov. COMSTAR – United TeleSystems (COMSTAR – UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announced that the total number of Internet broadband access with COMSTAR-UTS in Saratov and Saratov Region has now increased by nearly 3 times up to more than 20,000 compared to beginning of 2008.

Presently, the subscriber base of broadband access is nearly uniformly distributed between Saratov branch of JSC COMSTAR-UTS and ZAO “Kaskad-TV” (part of operator group with “STREAM-TV”, owned by COMSTAR-UTS). Technical enhancements of data network accomplished in 2008, and marketing strategy, successfully fulfilled by both companies, helped to increase the number of broadband Internet access subscribers for COMSTAR-UTS Group in the Region.

In the last year COMSTAR-UTS and “STREAM-TV’ fulfilled a number of technological procedures aimed at an increase of network performance efficiency. In particular, the Saratov branch of JSC COMSTAR-UTS has expanded capacity of the backbone network, increased quantity DSLAM ports of access (Digital Subscriber Line Access Multiplexer), and also since February, 1st, 2009 expanded the external channel of broadband access to the Internet by 1,5, creating by this the conditions for further growth of broadband subscriber base. “The inhabitants of Saratov and Engels have high demand for the packaged offer “Phone + Internet” the price of which is more favorable, than while using each of these services separately, and the symbolic payment of 1 ruble for connection to Internet of COMSTAR-UTS using technology ADSL2 + makes this service accessible for everyone. The complex approach to service, possibility of payment for various services (local, intra-zone, long-distance and international telephony and Internet access) with the common account is also is attractive for our Subscribers”, - said Ivan Gavriletsky, Director of Saratov branch for JSC COMSTAR-UTS. As a result, the present day level of penetration for Internet broadband access service with our telephone subscribers is at an order of 25 %”.

During 2008, experts of Joint-Stock Company "Kaskad-TV" accomplished the project for upgrade of a kernel for data network, thereby substantially increasing performance and capacity of the network and making a good reserve for growth of subscriber base in 2009. “Now our company provides Saratov and Engels with broadband access to Internet using both technologies – DOCSIS* and Ethernet. Connection to multi-service network of the company for all new users is carried out based on the technology «fiber to the house» (FTTB), ** which corresponds to technical strategy of regional network development for STREAM-TV Group of companies. Starting building of a multiservice network in the first quarter of 2006, for today we have already provided with possibility of connection to broadband Internet for more than 120 thousand residential apartments, including 30 thousand – based on FTTB technology. This provides us in the region with good base of potential clients which would like to receive as package of service both TV and Global network access”, Maxim Simatchev, deputy Director General for technical development of Joint-Stock Company STREAM-TV said. Simplification of connection procedure (just a written request placed at a web site of the company is enough, or a phone call to client care service), change of billing system for subscriber payment (only after usage of the service), introduction of unlimited tariffs without restriction for download traffic and increase of pre-paid traffic amount, being a part of subscriber payment for limited tariffs, has allowed the operator to attract considerable number of new subscribers.

Besides, both companies have undertaken successful marketing initiatives on promotion of Internet services and increase for the loyalty of users, fulfilled a number of socially oriented projects: discount connection to the Internet with unlimited tariff by the beginning of academic year, educational Internet quizes and competitions, including those dedicated to summer Olympic games in Beijing, etc. All this helped to promote popularity of Internet services among the inhabitants and companies of Saratov Region.

In the end of 2008, COMSTAR-UTS has finished transactions on acquisition of regional operators of STREAM-TV Group, rendering services of cable and air-broadcast TV with Internet broadband access in 40 cities of Russia. COMSTAR-UTS on a scheduled basis, according to the agreed strategy increases its subscriber base in the regional markets. As of today, the branches, affiliated and dependent companies of COMSTAR-UTS and STREAM-TV operate in 6 federal districts of Russian Federation (except for the Far East), rendering services to nearly 4 million of telephone subscribers – individuals, over 1 million of broadband Internet access residential area Subscribers, and about 2.1 million subscribers of pay-TV.

For details on the activities of Saratov branch of COMSTAR-UTS, please visit: https://saratov.comstar.ru/.

For details on the activities of Joint-Stock Company “Kaskad-TV”, please visit: https://saratov.stream-tv.ru.