SOURCE: Golden Telecom

November 01, 2007 13:14 ET

Golden Telecom Leads Among Alternative Operators of Northwest Region

MOSCOW--(Marketwire - November 1, 2007) - Golden Telecom, Inc. ("Golden Telecom" or the "Company") (NASDAQ: GLDN), the leading provider of integrated telecommunications and Internet services in the largest population areas of Russia and the Commonwealth of Independent States (CIS), today held a press conference in St. Petersburg.

In accordance with its business strategy, Golden Telecom remains focused on regional expansion. The Company has 26 points of technical presence and 8 points of commercial presence in the Northwest ("NW") region of Russia. Today, the alternative operators of the NW Region possess 39% of the fixed-line communications market share. Golden Telecom leads among the alternative operators with 26% of the market share in the NW region. By the end of 2007 the company's annual revenue from the region is expected to exceed $137 million.

Golden Telecom is the only provider that operates in all segments of the fixed-line communications market in Russia. Traditionally, approximately 50% of Golden Telecom's revenue in the NW region comes from corporate clients.

In 2007, Golden Telecom began rollout of its "Triple 65" project to construct Fiber-to-the-Building ("FTTB") networks in Russia, including the NW region. Currently, the networks are being constructed in St. Petersburg, Arkhangelsk and Kaliningrad. The company expects to cover 650,000 households by the end of 2007 in the region.

Fiber-optic channels connect Golden Telecom with leading international operators, bringing together cities with the most concentrated international traffic from Russia. The Company's Moscow - St. Petersburg - Stockholm line is the "Window to Europe" for Russian carriers. The majority of the international interconnections are located on this network segment. Golden Telecom is the leader on the Russian market for international telecommunication channels with its 1600 km fiber-optic network.

Commenting on Golden Telecom's operational results in the NW region, Jean-Pierre Vandromme, CEO, said: "Today, our company leads among the alternative operators in the Northwest region. In following our regional expansion strategy each year, we increase Golden Telecom's operations not only in St. Petersburg, but also throughout the entire region. In 2007, in addition to providing services to corporate clients, small and medium-sized businesses, our company entered the consumer market with a variety of new Broadband Internet services. We expect our services to be available to the majority of people of the NW Region."

About Golden Telecom (www.goldentelecom.ru):

Golden Telecom, Inc. (NASDAQ: GLDN) is the leading provider of integrated telecommunications and Internet services in the largest population areas of Russia and the Commonwealth of Independent States (CIS), with its own facilities and communications infrastructure. The Company offers telephony, data transfer and Internet access services to corporations, operators and private individuals through its existing networks in large cities, including Moscow, Kiev, St. Petersburg, Nizhny Novgorod, Samara, Kaliningrad, Krasnoyarsk, Almaty and Tashkent, as well as through rented channels and fiber-optic and satellite communications networks, including approximately 293 combined access points in Russia and other CIS countries. The Company also offers mobile communications services in Kiev and Odessa.

Statements made in this press release are forward looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements include projections regarding revenues in the Russian Northwest region and FTTB coverage. It is important to note that such statements involve risks and uncertainties, which may cause outcomes to differ materially from those set forth in these statements. Such risks and uncertainties include, but are not limited to, the possibility that revenues may not develop as we expect or that we are unable to continue to develop our FTTB networks as we anticipate. Additional information concerning factors that could cause results to differ materially from those in the forward looking statements is contained in the Company's filings with the U.S. Securities and Exchange Commission including the Company's quarterly reports on Form 10-Q, current reports on Form 8-K filed during 2007, and the Company's annual report on Form 10-K for the year ended December 31, 2006.

Contact Information

  • For additional information please contact:

    Public Relations Department:
    Anastasia Borzova
    Email: Email Contact
    Tel.: +7 (495) 797-9300
    Fax: +7 (495) 797-9332

    Investor Relations Department:
    Alexey Subbotin
    Email: Email Contact
    Tel.: +7 (495) 797-9300
    Fax: +7 (495) 797-9331
    www.goldentelecom.ru