General information

Telecommunication Investment Joint Stock Company (Svyazinvest) is one of the largest telecom holding companies in the world. Its charter capital was formed by consolidation of shares owned by the federal government in regional telecom operators, set up in the process of telecom sector privatization. Svyazinvest incorporates 7 large mega-regional telecom operators, OJSC Giprosvyaz and OJSC Rostelecom, the national domestic long-distance and international operator.

Svyazinvest network covers nearly the whole of Russia and its capacity makes up over 90% of the total country`s capacity. The holding company`s subsidiaries operate public telephone networks which installed capacity is over 33 million telephone lines (of January 1, 2010).

Subsidiaries have licenses for provision of local, domestic long-distance and international telephone services, data transmission, etc. They also provide ISDN services, wireless subscriber access and mobile services.

KPMG, international consulting company, is the auditor of Svyazinvest.

Basic financial and economic indicators

The basic consolidated financial and economic indicators and operating results of Svyazinvest subsidiaries are presented in the following tables.

Consolidated operating results of Svyazinvest subsidiaries	2008	2009
Total installed capacity, thousand lines	33 074	33 344
Urban telephone network	28 144	28 412
Rural telephone network	4 930	4 932
Number of main telephone lines, (thousand)	30 539	30 248
Urban telephone network	25 864	25 645
Rural telephone network	4 676	4 604
Inter-city telephone channels, thousand ch/km	16 624 436	25 064 236
Telephone density (main lines per 100 inhabitants)	25,7	25,6
Number of employees (thousand)	206,4	185,9

Consolidated financial and economic indicators of Svyazinvest subsidiaries	2008	2009
Sales revenue	253 026 698	259 053 135
Balance sheet income	46 781 998	43 795 805
Net income	23 456 567	28 512 588

Charter capital structure

Svyazinvest charter capital is over 19,5 billion rubles consisting of 19 518 337 220 ordinary shares with par value of one ruble. At present Svyazinvest securities are not offered for sale on stock markets.

The main shareholder of Svyazinvest OJSC is the Russian state (the Russian Federation) through the Federal Property Management Agency (75% minus one share). The rest of equity capital (25% plus one share) is divided between Comstar - United TeleSystems OJSC (17.31%) and MGTS Finance S.A. (7.69%).