Agreement reached between Rostelecom and MGTS

On February 27, Rostelecom and MGTS representatives met in Moscow to discuss interaction between the two companies. In the course of the meeting an agreement was reached on financial relationship between Rostelecom and MGTS for 2003.

In accordance with the agreement, in 2003 the basic amount of Rostelecom’s payments to MGTS will remain at last year’s level.

It is important to note that the new agreement is aimed at active stimulation of outgoing and incoming traffic growth in Moscow: for the first time Rostelecom’s payments to MGTS will be linked to the volumes of traffic passed through MGTS’ network.

As last year, the agreement provides for an increased proportion to be paid by Rostelecom to the Moscow operator if revenues of Rostelecom’s Moscow branch (MMT) exceed last year’s amount.

The agreement reached with MGTS is aimed at stabilizing the situation in the region and strengthening Rostelecom’s positions in the Moscow market, which undoubtedly will have a positive impact on Moscow subscribers as well.