OREANDA-NEWS. July 01, 2010. Southern Telecommunications Company (UTK) [(RTS KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed-line telecommunications operator in the territory of the Southern and North-Caucasian federal districts of the Russian Federation, announces that in accordance with a resolution passed by the Board of Directors of UTK (minutes # 27 dated June 10, 2010) the size of the company’s investment program for 2010 is to be raised by 18.6% from RUR 4.3 bln to RUR 5.1. bln.

About 65% of the new investment program will be aimed at rolling out value-added services and datacom networks.  Due to unsatisfactory demand for Internet access in 2010 the top priority area for the investment program remains the expansion of broadband Internet using xDSL technology.  This year, the plan is to enter into service some 260,000 ports.  In addition, the number of xDSL ports in services will increase by 36.4% by the end of 2010 and will amount to 729,200 ports.

Along with rolling out xDSL services in 2010, UTK expects to implement projects aimed at providing broadband Internet using FTTx technology. These projects are to be carried out in large cities with a high level of solvent demand.  In 2010, the plan is to commission over 42,000 FTTx ports.