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Golden Telecom comes to Tatarstan

09 апреля 2006
Golden Telecom, Inc. (NASDAQ: “GLDN”) announced that it has finalized the acquisition of 70% of Tatar Intellectual Communications (Tatintelcom). The purchase price of the acquisition was approximately US $4.0 million.

Tatintelcom is licensed to provide broadband access services on the basis of ADSL technology, rent communication channels and construct local communication and VPN networks.

Tatintelcom’s access points in the city of Kazan are located on the largest nodes of the Kazan City Telephone Network (KCTN), equipped with ADSL broadband access equipment and connected into a common fiber-optic Ethernet network with output capacity of 1 Gb/s. According to late 2005 data, the utilized capacity of the KCTN was 227,964 numbers. In addition to Kazan, Tatintelcom also provides operation of corporate networks in the two largest cities of Tatarstan, Nizhnekamsk and Naberezhniye Chelny, as well as other residential areas of the Republic of Tatarstan, using resources of a rented trunk network.

Golden Telecom is currently completing the construction of a “FOCL” on the Nizhny Novgorod – Kazan – Ufa route as an extension of its recently inaugurated Moscow – Nizhny Novgorod segment. Kazan, with its well-developed infrastructure and large number of businesses, is a strategically important point within this segment. Upon completion, the FOCL will cross the entire Republic of Tatarstan and Golden Telecom will discover new opportunities for the development and optimization of its business in Tatarstan.

Commenting on this deal Jean-Pierre Vandromme, Golden Telecom’s Chief Executive Officer, noted: “Promotion of broadband Internet access services in the regions is the most important component of our business strategy. The fact that Tatintelcom has access to the last mile in Kazan, as well as the fact that Golden Telecom disposes of its own trunk cable are the key factors ensuring active promotion of accessible broadband Internet access services not only among corporate clients but also among a great number of private customers and small businesses. Prior to the acquisition of Tatintelcom, the Company was not represented in the republic but operated via its partners. Acquisition of Tatintelcom will enable the Company to provide services to its current corporate clients directly and enter the mass-scale market of broadband access services”.

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