MTS strengthens its position in the market for fixed-line Kursk

Telecommunications operator MTS announced the acquisition of a group of private investors 100% of the share capital of JSC "Zheleznogorsk City telephone Kommmunikatsii" ("ZhelGorTeleKom"), the market leader in broadband Internet Zheleznogorsk, the second largest city of Kursk. The deal, taking into account available at the company's net debt amounted to 152 million rubles.

CJSC "ZhelGorTeleKom" provides communications services since 2004 and today has 58% market share of fixed broadband Internet Zheleznogorsk. Operator's network is built on technology FTTB (Fiber-To-The-Building, «FTTH") and covers 98% of the housing stock of the city.

Financial results of JSC "ZhelGorTeleKom" will be consolidated in the accounts of OJSC "MTS" on 23 October 2012.