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Eurotel

Company

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JSC Eurotel, trunk operator of Russia, 100% subsidiary company JSC Mobile TeleSystems (NYSE: MBT), mobile operator in Russia and the CIS countries. Eurotel is present at all federal districts of the Russian Federation. Extent of a backbone network of Eurotel is over 20 thousand km. The network built based on DWDM technology covers all significant cities of the Russian Federation. The company specializes in providing trunk communication channels for telecom operators. IP Eurotel network allows to provide services of Internet access in all cities of presence.

Owners:
Mobile TeleSystems (MTS)

Content

Financial results
2009 year
Revenue: 1000 millions

Owners

History

2010

In 2010 installation and construction works on the DWDM installation of the equipment on the following sections were completed: Новокузнецê–Абакаí–Красноярсê–Тайшеò–Иркутск, Abakan-Kyzyl, Rostov - on - Don-Krasnodar, the Russian-Finnish border Helsinki.

Upgrade is carried out and the data network in different regions of the Russian Federation is started, several tens of nodes of aggregation for connection of operators are developed in dozens of the cities of Russia. Projects in Europe on deployment of telecommunication nodes of a data network based on the equipment Juniper in London, Amsterdam and Helsinki were implemented, accession to LINX, AMS-IX and FICIX is executed. Eurotel started own fiber line of communication in Finland.

In the summer of 2010, as a result of reorganization of management of trunk assets of MTS Group, based on Eurotel operator the new division of MTS - BE "Backbone network" under which authority the control of all trunk channels and IP traffic of the company is was created. The division specializes in providing trunk communication channels for telecom operators.

At the end of 2010 together with national operator of telecommunication of Republic of Belarus Beltelekom Eurotel carried out works on expansion of an external Internet gateway of Belarus on 10 Gbps in the Russian direction.

In the closest plans of Eurotel - completion of construction of a number of sections of network in Russia and start of the second communication line to Helsinki.

The Comstar-United Telesystems company completed the works on transfer of traffic of the Internet users living in the largest cities of presence of Group on an optical transport network of communication of JSC Eurotel of Group of MTS. Works on switching of tanks from leased communication channels which COMSTAR used for transfer of Internet traffic of a considerable part of the subscribers on a backbone network MTS/Eurotel were completed by November, 2010 in the cities: Yekaterinburg, Kemerovo, Novokuznetsk, Penza, Ryazan, Samara, Saratov, Engels, Tambov, Tyumen, Ulyanovsk, Belgorod, Irkutsk, Volgograd, Novosibirsk, Omsk and Chelyabinsk. The group of MTS owns a big backbone fiber-optical network, being present at all federal districts of the Russian Federation. Total extent of a backbone network of group of MTS, including network of the operator of trunk communication of JSC Eurotel purchased in 2009, is about 43 thousand km. The network is built based on technology of wavelength division multiplexing of DWDM channels and covers all significant cities of the Russian Federation.

2009

In April, 2009 the transaction on acquisition of 51% of a packet of Eurotel Ltd at Synterra Group was prepared and carried out. The share in Eurotel Ltd was brought to 100%. In October, 2009 process of consolidation of two telecommunication operators of Eurotel Ltd and JSC Enifkom was successfully complete. As a result under the uniform Eurotel brand (JSC Eurotel) one of the leading trunk operators of the Russian Federation working in all federal districts was created.

The companies managed to integrate completely operating activities and infrastructure resources. Own backbone network of Eurotel in six federal districts in 2009 grew almost by 11,000 km, and income on operating activities was over 1 billion rubles.

In December, 2009 the agreement on acquisition of JSC Eurotel by the largest cellular operator of Russia - JSC MTS was reached. Transaction amount was $110 million without debts. Integration of all regional resources into a single backbone network which control of functioning will be exercised from federal command center became the main objective of Eurotel in 2010.