01/12/2004   PeterStar Installing Telephones To Krestovski Island’s New Settlers

ZAO PeterStar — one of the leaders on the telecommunications market of the Northwest Region — stirs to activity its presence on the market of establishing telephone communication for commercial dwelling houses. By present PeterStar has signed a contract with the construction and investment company StroiInvest for the provision of communication services at the dwelling complex under construction in Krestovski Island.

This dwelling complex is designed to be located close to the bridge uniting Krestovski and Elagin Islands. It will be constructed in several stages, and the work is expected to have been accomplished by the summer of 2005. Despite the vicinity of the downtown the telecommunications infrastructure of Krestovski Island still remains undeveloped. To establish telephone communication in this area at the beginning of next year PeterStar will launch the installation of fiber cable, install a communication node and allocate approx. 1000 numbers. According to the project, there will be installed 2-3 digital telephone lines and an Internet access channels (128 to 512 Kbps) at every apartment. The cost of service will amount to $20 and more monthly depending on the volume of services chosen. PeterStar will implement the whole project on a turnkey basis, starting with the examination and issuing specifications and finishing with the intercom network arrangement.

According to the General Director of ZAO PeterSatr Koresh V.I., “our advantage as an alternative operator consists in the fact that we are ready to act as co-investors together with the builder, as well as allocating own funds out of the CapEx fund for connecting houses. We don’t expect to quickly recoup the costs of connecting every house, but examine this investment comprehensively with relation to developing our own network and increasing the number of points of presence in the city. In particular, the project in Krestovski Island will allow PeterStar to open its own node in this district, and we are planning to also connect adjoining business and dwelling establishments.”

From 1997 PeterStar serves approx. 30,000 telephone numbers in the Vassilievski Island apartments under the fixed city tariffs, and approx. 45,000 numbers in Pskov. Besides, there are about 10 dwelling complexes in different city districts connected to PeterStar, and the company is the process of negotiations with other builders regarding establishing telephone communication at a number of other establishments, including suburb ones (Vyborg District, Pushkin).

ABOUT COMPANY:

ZAO PeterStar is one of the leaders of the telecommunications market of the Northwest Region of Russia, specializing in the provision of telephony, Internet and data services. From 1992 the company has invested over $150m in the construction of its network, having materially contributed to the city telecommunications infrastructure development. The PeterStar transport network is the second city network in terms of capacity, yielding to OAO North-West Telecom, PTN’s affiliate. PeterStar possesses the largest fiber network in the city which length is approaching 2000 km. The total number of connected PeterStar telephone lines makes approx. 100 thousand. PeterStar occupies a 70% share of the telephone operators market among alternative operators. During five years PeterStar has been rendering social support to the city, serving the city infrastructure of the Vissilievski Island telephone network under the tariffs of the OAO North-West Telecom affiliate (PTN).

ZAO PeterStar is the owner of the 100% stake in the telecommunications company Baltic Communications Ltd. (BCL), 100% stake in the Petersburg Internet provider Comset, 80% stake in OAO Pskov City Telephone Network, 100% stake in OAO Pskovintercom, as well as the 100% stake in OAO ADM-Murmansk.

Press Service of ZAO PeterStar
Alina Karpichenko, karpichenko@office.peterstar.com
(812) 329 9053, 962 3582