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Indicators Measurement

units 2011 (fact.) 2012 (plan.)

Investment in fixed assets RUB, million 59 319 110 105

The main areas of investment:

Traditional telephony RUB, million 3 126 1 985

New services and other services apart from traditional

telephony RUB, million 30 391 59 458

communication infrastructure

Facilities RUB, million 715 4 075

Acquisition, construction and reconstruction of

buildings, structures, etc RUB, million 1 028 1 124

Investment in IT RUB, million 2 876 6 601

Transmission lines and communication infrastructure

facilities RUB, million 14 434 27 926

Other infrastructure RUB, million 5 180 5 290

Special RUB, million 8,4 42

Trunk feeders, objects of domestic and international

long distance telecommunications RUB, million 1 560 3 604

Operational fixed assets RUB, million 57 217 109 487

Major and strategically important investment projects of 2011:

- Expansion of the OJSC Rostelecom owned IP\MPLS data transmission network for the purposes of increasing the capacity of and upgrading the IP/MPLS network so as to completely meet the demand of clients across all segments.

- Refitting of the Rostelecom transport network through the establishment of additional 10/40 Gbit/s optical channels with the of transponders on existing DWDM systems.

- Implementation of a number of new DWDM systems.

- Additional equipment of management systems, and hardware and software complexes.

- Creation of 11 trunk transit communication centers, 34 regional communication centers, and 15 points of access.

- Construction of the Vologda-Kotlas-Syktyvkar fiber-optic line in order to increase network resources, set up digital output to Syktyvkar, and provide new services (Internet, VPN) the following measures were accepted within the project:

- Construction of the 0.6 km length binding from PPC or MCC Syktyvkar to UD Syktyvkar. - Additional equipment of the current transport network of the segment Gryazovets - Luban. - Reconstruction of the external and standby electrical power system of UD Syktyvkar.

- Establishment of a level transmission system with the use of DWDM equipment on the Gryazovets-Syktyvkar (GE and STM-4 client interface) segment for connection of the current SDH equipment to the equipment of a multiservice network.

- The establishment of a Rostelecom point of presence in Armenia and Georgia,

- The company finished the first phase of construction of two start-up facilities for the expansion of an international transport network to Azerbaijan and also the additional equipment of national network segments in the MRF Center, Volga, South (1 PC on theKotluban-Derbent segment, 1O K STM-64; 2 PC on the Moscow-Dzhubga segment, 2 OK STM-64; on the Moscow–Elista segment, 1OK STM- 64) responsibility areas.

- Modernization of a current multiservice network for the additional equipment of the Center, Volga, and South MTU MRF routing devices.

- The company also realized the second stage of construction of two start-up facilities, which involved the creation of a SDH/DWDM ring structure of the STM-64 level on the TrP6 Sochi -RRS44, Sochi- MSS94, Sochi- TrP6 segments, with the additional equipment of the Dzhubga OP5 - TrP6 Sochi (1PC) segment and the installation of DWDM equipment to strengthen the OP5 Dzhubga - TRP6 Sochi-Poti (Georgia) network segment (2PC).

- Modernization of the Rostelecom data transmission network for the connection of content providers. The Rostelecom data transmission network was renovated so as to improve the technological connection capacity of major content providers in order to improve network connectivity and to optimize the routing of Internet traffic.

Reconstruction of the RRL-18 on the Yakutsk-Mirny-Lensk segment. For this project, the company reconstructed the existing analogous RRL-18 (Yakutsk-Mirny -Lensk, 1PC) 1,216 km in length transmission lines.

- OJSC Rostelecom also provided universal information and telecommunication infrastructure-based communication services for the state system of issuing and controlling new generation passport and visa documents.

- In 2011, the company provided 284 governmental entities (FSB, MoD, FMS, Navy etc.) with a connection to the IP VPN network in order to deliver communications service for the state system of issuing and controlling new generation passport and visa documents. These services involved the equipment of a number of access points and the construction or establishment of digital “last mile” connections.

- The delivery of services to the Ministry of Defense of the Russian Federation in order to connect the binding line facilities owned by the Ministry of Defense to Rostelecom’s digital network. In order to further expand its range of services (digital channels and paths, VPN- service , Internet access), the company set up twenty-five digital channels for six customer facilities between military unit MoD RF communication centers and provided IP VPN service with a capacity of 2048 kbit/s based on the Rostelecom transport and IP MPLS networks.

- The modernization Rostelecom’s data-center infrastructure in order to increase the range of services provided on the territory of Siberia and Urals. This project includes the installation of head-end equipment in the data-center for the “leasing of a dedicated server” service.

- The implementation of the technical ERP architecture

- The commercial launch of the mobile Data Center (MDC), which consists of separate modules created on the basis of standard 40-feet shipping containers that can quickly be deployed and connected to Rostelecom communication channels. At the same time, MDC allows data storage and processing, as well as the delivery of a wide range of services with high reliability, fault tolerance, and performance.

- The construction of FOCL Selikhino –De- Castries -Cape Lazarev -Nikolaevsk-on-Amur.

- The launch of the fiber-optic communication line (FOCL) Selikhino -De Castries–Nikolaevsk-on- Amur. The construction of fiber-optic communication lines along the lower Amur is a unique project. The line passed through the taiga areas, crossed many water obstacles and trails. The capacity of optical lines in Nikolaevsk-on-Amur is equal to 1 Gbit / s. Earlier the Internet access in Nikolaevsk- on-Amur was carried out through the satellite channel. The optical trunk will allow:

- High-speed internet access with unlimited plans and “Interactive TV” with the option of over 100 channels in digital quality.

- The integration of the northern districts of the Khabarovsk region with OJSC Rostelecom’s universal telecommunications network.

- The provision of communication services along the federal highway “Amur” Chita-Khabarovsk - The establishment of 10GE transmission systems through the use of K-708 free optical fibre in order

to provide:

- the necessary capacity to connect the base stations of mobile operators (butting over Ethernet) and infrastructure facilities along the road.

- the prospect of development.

- The introduction of TsRRL R-608 transmission, which brought the maximum transmission capacity to 144 Mbit/s.

- The launch of the fiber-optic communication line (FOCL) in order to ensure: - The quality and reliability of telecommunications services.

- Interactive “Home Television” services and high-speed broadband Internet access with unlimited tariffs for inhabitants of applicable areas.

- The provision of communication services to private enterprises and government entities on a whole new level.

The approximately 250 km long fiber-optic communication line runs through twenty-two settlements, including Otradnoye, Nikolaevka, Anuchino, Ivanovka, Osinovka, Arseniev, and others. The line has a capacity of 1 Gb/sec., one hundred times greater than previous lines of communication.

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