21 January 2009, Moscow, Tyumen. Comstar – United Telesystems (JSC Comstar-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, announced completion of reorganization of its subsidiary OJSC «Tyumenneftegazsvyaz (TNGS) by way of its merger into OJSC Regional Technical Cånter  (RTC), also a member of the JSC Comstar-UTS Group.

JSC Comstar-UTS purchased controlling stakes in TNGS and RTC in 2005 and 2007 respectively. From March 2008 both companies are run by Vladimir Alaev, charged to implement the integration of JSC Comstar-UTS business in the Tyumen Region.  

The merger of OJSC Tyumenneftegazsvyaz into OJSC Regional Technical Center was approved by decisions of the TNGS’ annual General meeting of Shareholders of 28 June 2008 and the RTC’s extraordinary general meeting of shareholders dates 13 October 2008. Following theses decisions an additional issuance of the RTC shares was carried to enable conversion of the TNGS shares into RTC share, and from 31 December 2008  TNGS ceased to exist.

RTC acts as a universal legal successor in respect of all the rights and duties of TNGS. At the same time RTC will continue to provide services to subscribers – individuals and legal entities – in the full volume under the Comstar brand, ensuring quality and reliable communications .

Technologically, the integration of the two biggest assets of JSC Comstar-UTS in the Urals Federal District is based on a high-capacity backbone in total 1300 km long, built by TNGS and Nizhnevartovsky branch of RTC, linking all the key cities where JSC Comstar-UTS is present in the Khanty-Mansy autonomous okrug (KhMAO) : Nyagan, Khanty-Mansiysk, Nefteyuogansk, Surgut, Pyt’-Yah, Raduzhny, Nizhnevartovsk, Uray. 

According to Victor I. Koresh, Vice-President for Regional Development of Comstar – United Telesystems, “this transformation is consistent with a strategic plan, designed to streamline the system of JSC Comstar-UTS ownership and business management in the regions. The merger of RTC and TNGS is an important step towards consolidation of our assets in the Urals macro-region into a single operating branch. They both have similar business models, subscriber base and revenues profiles, service ranges and selling techniques, while having a proprietary transport infrastructure we can deliver an equal service level to all towns of KhMAO, where we operate. By restructuring its subsidiaries JSC Comstar-UTS has considerably reinforced its positions in the Tyumen Region as a leading alternative multi-service telecommunication carrier”.     

Valdimir Alayev, the CEO of OJSC RTC commented on the event as follows: “By joining our production resources, our efforts in network development and services introduction, we rule out entirely a competition between the units within the JSC Comstar-UTS Group in the KhMAO telecommunication market. The integration will reduce the costs by cutting overlapping business functions, unified business conduct standards, management and control processes, optimized array of the rendered services. One technical. administrative, marketing policy will allow introducing common corporate standards for all business processes, including inventory, finances and HR   management. This should eventually result in higher productivity, grade of service and margin for JSC Comstar-UTS in Tumen Region”.

The Regional Technical Center offers to individual and corporate customers a full spectrum of advanced digital telecommunication services, including fixed line local and CPP calling, DLD/ILD using an agency arrangement with JSC Comstar-UTS, wired and wireless broadband Internet access (BBA), wireless communications, leased telecommunication channels, and also some supplementary services (such as registration if domain names, development and maintenance  of web-sites and so on).

The RTC’s head office is located in the city of Tyumen. The Company’s branch network covers the cities of Neftejugansk, Nizhnevartovsk, Nojabr'sk, Muravlenko, Njagan', Pyt'-Jah, Raduzhnyj, Surgut, Tobol'sk, Uraj; settlements of Talinskij, Un’jugan, Pojkovskij, Hanymej, Vyngapurovseij. The Company’s presence area contain the biggest oil and gas fields: Samorlorskoye (in the biggest ten on the globe), Var'eganskoe, Novoaganskoe, Muravlenkovskoe, Sutorminskoe.  RTC also has a branch operating  in the city and region of Orenburg.

As of 1 December 2008 the installed numbering capacity of the Company in the Tyumen Region (including KMAO and è YaNAO) counts over 94 thousand, while the telephony and BBA subscribers connected in this region total 55 thousand.