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Comstar to Build First WiMAX Network in Armenia
MOSCOW-(Business Wire)-January 31, 2008 - "COMSTAR - United TeleSystems" JSC ("Comstar" or "the Company") (LSE:CMST), the leading combined telecommunications operator in Russia and the CIS, today announced that it has started building a wireless broadband network based on the 802.16e standard WiMAX technology in the Republic of Armenia. The project is expected to be completed in the second part of 2008.
The creation of the wireless broadband network will be implemented on the basis of Cornet, an Internet services provider in the Republic of Armenia and a part of Comstar Group. Cornet has a license to use 3.6-3.8 GHz frequency range throughout the territory of Armenia.
As a result of the tender in December 2007, Airspan Networks (US) was chosen by Comstar as a provider of equipment for the base stations.
24 base stations are expected to be built during the first stage of the WiMAX project in Armenia. The data transmission will be implemented via rented fibre-optic lines, as well as through radio bridges and radio relay channels. Comstar will also install two data transmission nodes based on Cisco's technology, which will connect the network in Armenia to the main internet channels.
The later stages of the project development presuppose an increase in the number of base stations in order to expand the coverage, as well as building new proprietary communication lines to the backbone.
Comstar intends to use its WiMAX network to provide high speed internet access, multimedia content delivery, voice services (VoIP), data transmission and the capability of creating virtual private networks (VPN) for residential and corporate subscribers.
Sergey Pridantsev, President and Chief Executive Officer of Comstar UTS, commented: "WiMAX is one of the most advanced and promising technologies which allows providing clients with a very broad range of telecommunications services. We intend to launch the network this year and, therefore, become the first and the largest wireless broadband internet operator in Armenia."
Note for Editors:
WiMAX (the Worldwide Interoperability for Microwave Access) is a telecommunications technology which provides wireless broadband access. WiMAX currently provides portable, fixed (IEEE 802.16d standard) and mobile (IEEE 802.16e standard) broadband access with the ability to function when the user's subscriber station is far from the operator's base station. The WiMAX base stations cover the radius of up to 1,5 km. in urban areas, and up to 3-5 km. in countryside.
For further information, please visit www.comstar-uts.com
Comstar UTS is the leading fixed-line telecommunications company in Moscow, both in terms of revenues and subscribers. Comstar UTS provides voice, data, Internet, pay-TV and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and exclusive last mile access to 98% of Moscow households. The Company also offers communications services in five Russian regions and certain CIS countries. Comstar had 3.6 million residential subscribers in Moscow, 452,600 broadband internet subscribers in Moscow, 108,600 corporate subscribers in Moscow, and approximately 94,100 regional and international subscribers, as at September 30, 2007. Comstar UTS reported operating revenues of US$ 1,080 million and a 43% OIBDA margin for the nine months ended September 30, 2007. Comstar GDRs are listed under the symbol "CMST" on the London Stock Exchange.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Comstar UTS. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms or other similar expressions. Comstar UTS wishes to caution that these statements are only predictions, and that actual events or results may differ materially. Comstar UTS does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Comstar UTS, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Comstar UTS operates in, as well as many other risks specifically related to Comstar UTS and its operations.
