Golden Telecom, Inc.: Golden Telecom Launches Long Distance Services in Russia One Month After Obtaining Its Access Codes
Golden Telecom Launches Long Distance Services in Russia One Month After Obtaining Its Access Codes
Rates From 10% to 65% Lower Than Rostelecom’s
MOSCOW — (MARKET WIRE) —
January 24, 2007 — Golden Telecom, Inc. (”Golden Telecom” or the”Company”) (NASDAQ: GLDN), a leading facilities-based provider ofintegrated telecommunications and Internet services in major populationcenters throughout Russia and other countries of the Commonwealth ofIndependent States (”CIS”), today announced that it will provide domesticlong distance and international long distance services throughout Russiastarting January 29, 2007, one month after the Company received its accesscodes.
On December 15, 2006, the Russian Ministry of Information Technologies andCommunications issued access codes to Golden Telecom according toResolution No.171 which was registered by the Ministry of Justice of theRussian Federation on December 28, 2006.
Golden Telecom will offer domestic long distance (”DLD”) under the code «51 » and international long distance services (”ILD”) under the code « 56». All 32 million residential Russian telecom users and 1.5 millioncompanies are from now on able to choose Golden Telecom as their DLD\ILDservices provider.
The receipt of the access codes and provision of DLD\ILD services willallow the Company to start realizing additional revenues from itsinternational and domestic long distance operations. Golden Telecom is thethird long distance telecommunication operator after Rostelecom and MTT andthe first truly independent operator in Russia to launch DLD\ILD services.Based on Golden Telecom’s existing client base, its highly skilled salesforce, and an effective marketing campaign, Golden Telecom expects tocapture at least a 20% market share of the total DLD/ILD market in Russiaby the end of 2010. According to management estimates, the total market forsuch services will reach approximately $5 billion by the end of 2010.
Commenting on the launch, Mr. Jean-Pierre Vandromme, Chief ExecutiveOfficer of Golden Telecom, noted, “In 2006, Golden Telecom constructed itsown FTN which covers all 88 regions of Russia and is capable of providing afull range of long distance services. Golden Telecom is a customer-orientedCompany which offers its clients flexible payment options, such as auniversal payment card, and wide distribution network with more than 4,000agents and approximately 30,000 points of sale throughout Russia. GoldenTelecom’s long distance communication rates will on average be 10% lowerfor domestic calls and between 10% and 65% lower for international callsthan those of the incumbent operator, Rostelecom. The launch of our DLD/ILDservice perfectly fits within our strategy to expand our services from thecorporate to the residential mass market.”
About Golden Telecom (www.goldentelecom.com)
Golden Telecom, Inc. (NASDAQ: GLDN) is a leading facilities-based providerof integrated telecommunications and Internet services in major populationcenters throughout Russia and other countries of the CIS. The Companyoffers voice, data and Internet services to corporations, operators andindividuals using its metropolitan overlay networks in major cities,including Moscow, Kiev, St. Petersburg, Nizhny Novgorod, Samara,Kaliningrad, Krasnoyarsk, Alma Ata and Tashkent and via leased channels andfiber optic and satellite-based networks, including approximately 290combined access points in Russia and other countries of the CIS. TheCompany offers mobile services in Kiev and Odessa.
Statements made in this press release are forward-looking and are madepursuant to the provisions of the Securities Litigation Reform Act of 1995.Such statements include those on the utilization of the access codes andFTN and the expected benefits of such, the expected markets for our DLD/ILDservices and our ability to capture portions of that market. It isimportant to note that such statements involve risks and uncertainties,which may cause results to differ materially from those set forth in thesestatements. Such risks and uncertainties include, but are not limited to,the possibility that we are not able to develop DLD/ILD services and FTN inthe manner we anticipate, that we do not realize the expected benefit forsuch service offerings or that the market for such services does not growat the rates that we expect. Additional information concerning factorsthat could cause results to differ materially from those in theforward-looking statements is contained in the Company’s filings with theU.S. Securities and Exchange Commission, including the Company’s quarterlyreports on Form 10-Q, periodic reports on Form 8-K filed during 2006 and2007, and the Company’s annual report on Form 10-K for the year endedDecember 31, 2005.
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