About the company

We (“the Group” or “the Company”) are a major Russian telecommunications provider, with points of presence (“PoPs”) in every region in Russia. On the basis of our advanced telecommunications network consisting of approximately 500,000 km of backbone infrastructure plus last mile connection and a fibre to the building or fibre to the home (“FTTx”) network we are providing access to 43 million subscribers.

We organize our business by two primary customer groups – residential customers (i.e., individuals) and corporate customers (i.e., legal entities, Russian Government agencies and entities under direct and indirect control of the Russian Government, telecommunications carriers and resellers that purchase our interconnection services), which represented 54% and 46% of our revenue, respectively, for the year ended December 31, 2011.

Our business is centred on providing integrated telecom solutions including local and intra-zone telephone services, international long-distance (“ILD”) and domestic long-distance (“DLD”) services, mobile voice, data services, broadband Internet access services and Pay-TV services to our broad base of customers in all regions of Russia.

Rostelecom had 28.5 million local fixed-line voice subscribers, 12.5 million mobile voice subscribers, 8.2 million fixed-line broadband subscribers and 5.9 million Pay-TV subscribers at the end of 2011. The Group generated RUB 296.0 billion of consolidated revenues, RUB 117.7 billion of OIBDA (39.8% of revenues) and RUB 46.1 billion of net income for the twelve months ended December 31, 2011.

Company’s ordinary shares were included in the Large Cap Segment of the MSCI Global Standard Indices and MSCI Russia Index with 3.43% weight, effective from September 1, 2011.