OREANDA-NEWS. January 6, 2011. “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 84 Russian cities, with a presence in Ukraine and Armenia, announces that Comstar-Regions, its wholly-owned subsidiary, has acquired 100% in Lanck Telecom LLC (“Lanck Telecom”), an alternative operator in Saint Petersburg, from a group of private investors. The acquisition allows MTS Group to strengthen its position in the Saint Petersburg corporate market.

The purchase price was RUB 547.4 million (USD  17.9 million ). In addition, Lanck Telecom has net debt of RUB 227.6 million (USD  7.4 million).

Lanck Telecom provides broadband Internet and fixed-line services with a focus on the corporate segment. The company services more than 1 million square meters of commercial real estate. The company currently has approximately 8,000 broadband Internet and 5,000 fixed-line subscribers.

Lanck Telecom’s financial results will be consolidated in MTS Group’s financial statements beginning from December 23, 2010.