OREANDA-NEWS. On May 17, 2007 COMSTAR - United TeleSystems (COMSTAR-UTS, LSE: CMST) announced a major increase in the number capacity of the Company’s Southern Branch in Q1-2007 from 3 thousand to 11 thousand numbers and the expansion of COMSTAR-UTS Network coverage area in the region of Krasnaya Poliana and settlement Lazarevskoye. The new capacities of the Branch allowed implementing of several major infrastructure projects in Sochi and the adjacent areas in a relatively short time and will also serve as the foundation for further growth and build-up of the customer base, reported the press-centre of  “Comstar UTS”.


As part of the Region Development Program, the Southern Branch focused its activities on the work with corporate customers and placed special emphasis on an integrated approach to connection of the commercial and residential real estate. The Southern Branch in Q1-2007 initiated working together with the Sochi International Airport by installing a 200 number digital exchange on the site of that Complex capable of providing telephone communication and data services to the Airport’s units and the passengers in future. Wi-Fi areas were established in the operational and new air terminals as part of preparation for the visit of Evaluation Commission of the IOC; similar Hot Spots were enabled in several international-standard hotels.


It is planned that the allocated number capacity resource will be used to strengthen the foothold on the hotel market in Sochi. COMSTAR-UTS has launched the project for provision of the Sochi-Magnolia Hotel with integrated telecommunication services. The work on rebuilding the line/cable plant in the Hotel buildings is already underway, and the provision of Internet broadband access services to the Hotel administration, guests and its sales area tenants will commence by June. It is planned that the Southern Branch in-house call center will be used to provide DDI to the Hotel rooms. Provision of a comprehensive suite of telecommunication services to the Laura Mountain Skiing/Sports & Tourism Complex in settlement Krasnaya Poliana commenced.


COMSTAR-UTS, expanding its presence on the regional commercial and residential real estate market, completed installation of equipment in the New Age Mall, the biggest in town. With the same objective in view, the Company’s Southern Branch launched the project for construction of FOCL in Lazarev district of Sochi where large-scale housing construction is in progress. The completion date of the FOCL construction is scheduled for Q4-2007.


“Strengthening of our position in Sochi and in its adjacent areas is the first outcome of implementation of the Company’s Regional Representative Office Development Program, which we initiated in late 2006, and we are happy that the first achievements showed themselves so quickly,” Nikolai Tokarev, Acting CEO, COMSTAR - United TeleSystems, comments. “Regional expansion is one of COMSTAR-UTS’ strategic lines of business in 2007. The Krasnodar krai is on the List of the 17 strategic regions where we plan to build up our presence both through organic and non-organic growth”.