OREANDA-NEWS. Southern Telecommunications Company [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District announces its 1H2006 results and 2H2006 plans on development of new technologies and rollout of value-added services. According to the Company’s budget, 2006 revenues from value-added services are expected to reach RUR 1,751.6 million, gaining 18.1% over 2005.

Percentage of VAS revenues in total revenues from telecom services is expected to increase from 8.3% to 11%. Revenues from Internet services are to grow by 49.9% to RUR 1,423.2 million, 684.8 million rubles of them are expected to be revenues from xDSL services (representing a 107.8%-increase).

2006 revenues from building of corporate networks based on VPN technology are estimated at 310.8 million rubles which is up 37% over a year-ago.

2006 revenues from intelligent services are expected to increase by 24.2% to 11.8 million rubles.