Rostelecom, Russia’s national long-distance telecommunications operator, in the end of September 2006, won a tender by Southern Telecommunications Company (“UTK”) - to provide it with the service of Internet traffic transit.

UTK – a major inter-regional operator in the Southern Federal District – selected of the five long-distance companies offering interconnection and IP traffic transmission services. Rostelecom was awarded a winner and in October 2006 UTK and Rostelecom plan to sign an agreement on their data transmission networks interconnection.

In the Southern Federal District, Rostelecom provides its services through the Company’s Southern branch with four regional centers in Bataysk, Krasnodar, Volgograd, Pyatigorsk and the headquarters in Rostov-on-Don. Rostelecom’s fiber-optic lines, the Southern branch is responsible for, are 4,970 kilometers in length.