General information

Telecommunication Investment Joint Stock Company (Svyazinvest) is one of the largest telecom holding companies in the world. Its charter capital was formed by consolidation of shares owned by the federal government in regional telecom operators, set up in the process of telecom sector privatization. Svyazinvest incorporates 7 large mega-regional telecom operators, OJSC Giprosvyaz and OJSC Rostelecom, the national domestic long-distance and international operator.

Svyazinvest network covers nearly the whole of Russia and its capacity makes up over 90% of the total country`s capacity. The holding company`s subsidiaries operate public telephone networks which installed capacity is over 33 million telephone lines (of January 1, 2009).

Subsidiaries have licenses for provision of local, domestic long-distance and international telephone services, data transmission, etc. They also provide ISDN services, wireless subscriber access and mobile services.

KPMG, international consulting company, is the auditor of Svyazinvest.

Basic financial and economic indicators

The basic consolidated financial and economic indicators and operating results of Svyazinvest subsidiaries are presented in the following tables.

Consolidated operating results of Svyazinvest subsidiaries	2007	2008
Total installed capacity, thousand lines	32 485	33 074
Urban telephone network	27 600	28 144
Rural telephone network	4 885	4 930
Number of main telephone lines, (thousand)	30 425	30 539
Urban telephone network	25 717	25 864
Rural telephone network	4 708	4 676
Inter-city telephone channels, thousand ch/km	11 626 259	16 624 436
Telephone density (main lines per 100 inhabitants)	25,38	25,7
Number of employees (thousand)	238,8	206,4

Consolidated financial and economic indicators of Svyazinvest subsidiaries	2007	2008
Sales revenue	244 337 520	253 005 107
Balance sheet income	51 538 274	46 785 060
Net income	36 941 363	23 456 567

Charter capital structure

Svyazinvest charter capital is over 19,5 billion rubles consisting of 19 518 337 220 ordinary shares with par value of one ruble. At present Svyazinvest securities are not offered for sale on stock markets.

The Russian state is the main shareholder of Svyazinvest through the Federal Property Agency (75% minus one share). JSC Comstar-UTS (17.31% plus one share). MGTS FINANCE S.A. - 7.69%

Federal Property Agency	75% – 1 share
JSC Comstar-UTS	17,31% + 1 share
MGTS FINANCE S.A.	7,69%