OREANDA-NEWS. April 23, 2010. COMSTAR – United TeleSystems (OJSC COMSTAR-UTS, LSE: CMST), the leading supplier of integrated telecommunication solutions in Russia and the CIS, has summarized its performance in the Moscow commercial real estate market for Q1 2010.

The first three months of 2010 saw contracts awarded with owners of 37 commercial real estate facilities, their aggregate area being nearly 2,000,000 sq. m. The most important projects are the following largest business centers of Moscow: Mirax-Plaza multi-purpose complex at Kutuzovsky avenue, River Mall trade and entertainment center at Avtozavodskaya street and the following business centers: Wall Street at Valovaya street, Varshavka Sky in Northern Chertanovo district, Principal Plaza at 12, October 60-th Anniversary avenue, Concord near Shabolovskaya underground station and Park Place Moscow located at 113/1, Leninsky avenue. The above facilities are of А and А+ class.

As a part of telecom networking for these facilities, COMSTAR-UTS specialists will lay more than 7 km of fiber-optic cable, roll out communication centers and install the equipment using the most up-to-date engineering solutions based on Cisco and Avaya equipment. All of the above facilities will be connected to COMSTAR-UTS multiservice NGN (Next Generation Network). The operator will be able to provide landlords of trade and office areas with the local, intra-zonal, interurban and international telephone communication, data communication infrastructure, Internet broadband access and arrange their corporate VPN (virtual private networks).

COMSTAR-UTS continues to provide their Moscow commercial real estate facilities with telecom services rendered by the Company. By end of 2009, our market share amounted up to nearly 50%, while in 2010, we expect to see its increase reaching 65% or even more. These performance results are normally achieved by efficient work and managerial skills of the team, flexible tariff policy, high quality of service, packaged offers including all types of services, distant communication, etc. This year, we plan to continue our project portfolio expansion policy related to this line of activity and to benefit from our synergy with MTS providing the services to our customers; we will also launch joint convergent products to B2B market”, Alexey Goncharuk, Senior Vice President of OJSC COMSTAR-UTS said.

Background data for Moscow commercial real estate market:

According to data provided by the major consultancy companies publishing their analytical reviews of the commercial real estate market, in 2009, the total scope of Moscow commercial property provision (business centers of А+, А, В, С classes, office and trade facilities) amounted to 14.4 mln. sq. m showing a 12% increase compared to year 2008. In 2009, COMSTAR-UTS signed a number of contracts with commercial real estate facilities having a total area of 2.0 mln, sq. m. Thus, the total area of commercial real estate facilities connected to network by COMSTAR-UTS amounted to 6.8 mln. sq. m by the end of 2009 with an aggregate area being more than 8 mln. sq. m, given the results of Q1 2010. This market share increased from 38% at the end of 2008 up to 47.6% at the end of 2009. Besides, the market share By end of Q1 saw an increase up to 57%. At present, The COMSTAR-UTS corporative client contract portfolio already comprises more than 360 commercial real estate facilities.