OREANDA-NEWS. On 15 January 2009 “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Group”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 66 Russian cities, announced that STREAM-TV Group’s total subscriber base for pay-TV and broadband internet access amounted to 1.8 million users at the end of the third quarter of 2008. The Group’s broadband internet access subscriber base exceeded 200 thousand.

STREAM-TV’s regional pay-TV subscriber base increased by 16% year on year in the third quarter of 2008, and the Group’s share of the total regional pay-TV market, consisting of 40 Russian cities, increased by 5% year on year to above 50%[1]. The Group’s internet access subscriber base increased by 78% year on year in the third quarter of 2008, and the STREAM-TV Group’s market share in the regions of presence increased by 10% year on year in the third quarter of 2008 and reached 17%[2].

Regional pay-TV monthly average revenue per user (ARPU) increased by 17% year on year in the third quarter of 2008, to RUB 120.00, and broadband internet access ARPU increased by 8% year on year in the third quarter of 2008 to RUB 367.00.

Viktor Koresh, Vice President for the Development of the Group’s Operations, commented: “This year, STREAM-TV has reported growth in its pay-TV subscriber base, and a significant increase in the broadband internet access market, which is the most sought-after service, with a strong growth potential. These results have been achieved due to a broad range of large-scale projects, which have been implemented in line with the Group’s unified marketing strategy. The transition of STREAM-TV under Comstar’s management will yield synergies which will allow us to significantly increase our subscriber acquisition levels and grow the Group’s market share in a number of segments, including broadband internet access.”

Excluding STREAM-TV’s subscriber base, Comstar had 854 thousand residential broadband subscribers at the end of the third quarter of 2008.