Market description and risks. "north-west telecom" Other bookmarks in the category "Internet access, hosting"

Open joint-stock company North-West Telecom is one of the largest telecommunications companies in Russia, the leading fixed-line operator in the North-West Federal District. OJSC NWTelecom provides a wide range of telecommunications services throughout the Northwestern Federal District. The area of ​​the district exceeds 1.7 million square kilometers, the population is 13.5 million people. The Leningrad Regional Branch of OJSC North-West Telecom provides the Leningrad Region with a full range of telecommunication services. The area of ​​the Leningrad Region is 85.9 thousand sq. km., population - 1.68 million people.

Customer requirements

The customer set the task of modernizing the telegraph equipment of 17 regional communication centers. It was required to decommission outdated equipment of telegraph substations and heterogeneous channel-forming equipment for voice-frequency telegraphy. One of the conditions of the Customer was the organization of communication between the nodes of the branch not only according to the current scheme using PM channels, but also interaction through the constructed data transmission network (IP-network) of the branch with the possibility of transferring the control and management functions of the equipment of all 17 communication nodes to one from nodes.

Channel capacity of the equipment determined by the Customer's technical assignment:

• From 2 to 15 TT systems (TC channels) for one district communication center, for the entire branch 130 TT systems;
• From 10 to 80 subscriber telegraph lines for one regional communication center, for the entire branch 495 lines.

Solutions

The TKS VEKTOR-2000 equipment manufactured by LINTEH was chosen as a replacement for the old telegraph equipment park.

The complete set of each set of TKS VEKTOR-2000 for 17 nodes of the branch includes:

• 1 block of switching of telegraph channels BKTK of industrial design without redundancy, equipped with modules;
• From 1 to 5 (depending on the RSS capacity) communication modules for 16 two-pole physical telegraph channels VTGA-2P-16 for connecting 4-wire telegraph subscriber lines;
• From 1 to 2 (depending on the RSS capacity) communication modules for secondary compaction of TT channels for 8 four-wire PM VKTT-8 channels for connecting 4-wire PM channels;
• The BKTK unit was housed in a standard 19 ”telecommunication cabinet existing at the site;
• 3 workstations of the ADMINISTRATOR's workstation for monitoring and managing the network of TKS VEKTOR-2000 were installed at three different nodes.

results

The reconstruction of the telegraph communication network of the branch allowed the Customer to obtain the following benefits and advantages:

• Eliminate obsolete telegraph equipment.
• telegraph substations ATK-20.
• 130 voice-frequency telegraphy systems of various modifications (TT-12, TT-24, TT-48, TT-144, P-327, THFM);
• Free up space.
  Dimensions of substation ATK-20 - 750x378x2600 mm, weight 400 kg.
  Dimensions of one equipment rack - TT-144 225x600x2600 mm, weight 300 kg.
  Block BKTK TKS VEKTOR-2000 has a size of 440x176x510 mm, weight 20 kg.
• Reduce equipment power consumption.
• Refusal of dedicated analog channels and transfer of internal telegraph traffic to the data transmission network (IP-network) of the branch.
• Reduce operating costs several times.
• The operational staff has been reduced by reducing the technical and operational sections of the telegraph unit.
• The labor intensity of operation has been reduced due to the built-in functions of monitoring and checking equipment and communication channels, the volume of specialized telegraph equipment has been reduced. In TKS VEKTOR-2000, only the VTGA and VKTT modules are specialized telegraph equipment. BKTK is an industrial computer, components for which can be purchased at almost any company that sells computer equipment.
• There are new opportunities that were missing before the reconstruction.
  The functionality for monitoring and checking the communication channels of the ARM ADMINISTRATOR TKS VEKTOR-2000 is much wider in comparison with the old equipment. Built-in functions for monitoring the state of telegraph channels (built-in undulator) and parameters of telegraphy signals of the tone frequency (built-in spectrum analyzer) eliminate the need for measurements on the crossbar by external control and measuring devices.
  In addition, TCS VEKTOR-2000 allows automatic channel switching according to pre-prepared schemes at all 17 nodes simultaneously, for example, for links of the "Pattern" type. In this case, the administrator needs to select only the desired scheme from the list and press the "Apply" button.
  The ability to remotely monitor and check equipment and communication channels allows one specialist to control the equipment and channels of all 17 branch nodes.

Implementation history

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Possible factors that can negatively affect the sales activities of the Issuer are, first of all, problems associated with competition in the communications market.

On the part of competitors, the following steps are likely:

· Rebalancing of tariffs, increasing competition between fixed-line operators and mobile operators in all regional markets;

· Entering regional markets (first of all, to the regional centers of the Northwestern Federal District of the Russian Federation, then to the regional centers of the Northwestern Federal District of the Russian Federation) of large companies that previously operated only on the St. Petersburg market will intensify competition throughout the territory of the Issuer's operations;

· Active promotion by competitors of their services in the most dynamic markets (telephony, Internet access and data transmission) will lead to increased impact on all client segments of the Issuer;

· The absorption of developed companies in regional markets by competitors will lead to increased competition throughout the territory of the Issuer's operations;

· The active construction of their own infrastructure by telecom operators leads to a decrease in prices for network resources (communication channels) and aggravates the competitive situation in the telecom services market.

Telephony:

In the “Population” segment, there is competition in the market for the provision of local telephone communication services from the side of cellular operators. Mobile operators promote additional (non-voice) services with discounts and bonuses for voice traffic.

In connection with the introduction of a time-based payment system for local telephone connections, the risk of subscribers refusing from wire communication services in favor of services provided by cellular operators has increased.

To retain subscribers, the Issuer offered a line of additional tariff plans with different volumes of local traffic included, and also developed a number of package offers for users of several services at more attractive rates.

In the "Corporate Clients" segment there is significant competition from alternative operators providing a wider range of related telephony services on a flexible system of discounts, as a result of which there is a risk of a decrease in the Issuer's share in the "Corporate Clients" segment.

The issuer plans to retain the number of subscribers by segment due to:

Management of the cost and pricing of local and intra-zone communication services,

Bundling of services,

· Formation of complex offers of communication services focused on various segments of corporate clients.

Internet access and data transmission:

Internet access services are one of the most dynamically developing areas of the communications industry, despite a slight slowdown in growth rates in recent years.

This market is characterized by strong competition, both in the population segment and in the corporate clients segment. It should be noted that the Issuer, as an operator with a developed own infrastructure, has a clear competitive advantage.

Operators of home networks and cable TV are currently actively developing on the broadband access market in the "Population" segment. Mobile operators strive to actively promote services mobile internet, their capabilities are expanding with the introduction of 3G networks.

Since the beginning of 2006, the Issuer has been providing broadband access services for the population under the Avangard trademark. The Issuer is constantly increasing its subscriber base and occupies a leading position in the market of the North-West Federal District of the Russian Federation in this segment, in connection with which there is a risk of a response from alternative operators aimed at maintaining its positions in the market, including by lowering prices.

Since December 1, 2007, the Issuer has been providing broadband Internet access services for legal entities under the trademark "Alliance-PRO Internet".

The Issuer practices the expansion of the range of speeds for unlimited tariff plans, a systematic increase in speeds on existing tariff plans, a reduction in the cost of providing access to the Internet, the introduction of additional services and services. Along with this, the Issuer makes efforts to actively attract new users by expanding the geography of services provision, development, modification and adaptation of existing products and services, implementation of outbound telemarketing, organization of comprehensive services, implementation of special programs for retaining corporate clients, providing corporate clients with a range of services ( including the creation of an IP VPN), the implementation of a customer loyalty program.

Investment risks

In 2006, the Issuer's Board of Directors approved the "Risk Management Regulations" in order to integrate risk management procedures into a comprehensive system. The purpose of the Issuer's risk management system is to reduce the likelihood of events leading to losses. The Regulation defines the objectives of the Issuer's risk management system, levels of the risk management system and disclosure of information about the system and assessment of its functioning.

In 2008, NWTelecom implemented a risk management system (RMS), the main objectives of which are to improve the efficiency of management of threats and opportunities and increase the capitalization of the Issuer.

Executive bodies The RMS (by the commission and the working group for risk management) developed the Risk Management Program at OJSC NW Telecom (hereinafter referred to as the Program).

In accordance with the Program, a reporting system was introduced on the progress and results of the implementation of approved risk management action plans:

· Event owners report quarterly on RMS activities to the respective risk owners;

· Risk owners quarterly report on the progress of risk management to the risk management committee;

· The Issuer's internal audit department checks the risk management process every six months and makes recommendations to the commission on the necessary adjustments to work on the RMS.

The summary risk assessment of the Issuer is formed on the basis of risk reports. Risk reports are used to monitor the effectiveness of risk management and, along with the conclusion of the internal audit department on the performed inspections, are the basis for considering the issue of amending the current Risk Management Program.

From the point of view of the influence of risk on the results of the Issuer's activity, all risks are subdivided into:

· Significant;

· Moderate;

· Insignificant.

Control over the implementation of action plans to manage material risks is exercised by the Board of Directors. Control over moderate and non-significant risks is the responsibility of the risk owners and event owners.

To manage risks, risk management action plans have been developed, including one or both of the following types:

· Plan of preventive action on the risk (action on the causes of risk or risk-forming factors);

· A plan for the subsequent impact on the risk event (impact on the consequences of the risk).

Key Risk Indicators ( key indicators efficiency of KRI).

Industry risks

The article describes the impact of a possible deterioration of the situation in the industry of the issuer on its activities and performance of obligations under securities. The most significant, in the opinion of the issuer, possible changes in the industry (separately in the domestic and foreign markets), as well as the expected actions of the issuer in this case are given.

The Issuer carries out activities only in the territory of the North-West Federal District Russian Federation(hereinafter RF or Russia).

1. Changes in industry legislation

The phenomena and processes occurring in the communications and informatization industry are in a state of continuous movement, and therefore, the current industry legislation requires constant amendments and additions. The main risk of the Issuer associated with constantly changing industry legislation is the ambiguous interpretation of regulatory legal acts (amendments and additions to them) establishing methods and mechanisms of state regulation, including state regulation of tariffs for communication services, for connection services and access services. traffic.

2. Increased competition in the industry.

The communication services market in the North-West Federal District of the Russian Federation is characterized by growing competition from both alternative fixed-line operators and cellular mobile operators.

Increased competition from mobile operators is due to:

· Reduction of prices for intra-network long-distance connections by cellular operators;

· Provision of intranet roaming at the price of local connection;

· Provision of services of mobile access to the Internet;

· Activation of the activity of telecom operators in terms of promoting services in the "corporate clients" market segment (in view of the saturation of the market in the "population" market segment);

Landing of zone traffic of cellular operators for more than low prices through own networks and / or networks of alternative operators to the local level.

The above factors create the risk of replacing fixed-line communication with cellular and a slowdown in the growth rate of the Issuer's income.

Increased competition appears to be the most significant risk in the long term.

3. Dependence on the Federal Tariff Service (FTS of Russia) in setting regulated tariffs for communication services for subscribers and dependence on Roskomnadzor in setting prices for connection and traffic transmission services for operators.

In accordance with the Federal Law of 17.08.1995 No. 147-FZ (as amended on 25.12.08) "On natural monopolies", tariffs for services of public telecommunication operators recognized as natural monopolists are subject to regulation by the state authorities of the Russian Federation.

The state regulation of the telecommunications industry introduces into the Issuer's activities the risks and uncertainties common to all Interregional companies of OJSC Svyazinvest (hereinafter interregional companies) associated with changes in tariffs for communication services for users and prices for connection services and traffic transmission for operators.

Thus, for the Issuer there is a risk of untimely changes in tariffs, which reduces its competitiveness and may adversely affect the profitability of its activities and, accordingly, the ability of the Issuer to fulfill its obligations under securities.

4. Selection of the Issuer as an operator of universal telephone service using payphones.

According to the Federal Law of 07.07.2003 No. 126-FZ "On Communications" (as revised on April 29, 2008), hereinafter referred to as the Federal Law "On Communications", the provision of universal communications services in the Russian Federation is guaranteed, which include:

· Telephone services using payphones;

· Services for data transmission and provision of access to the Internet using public access points.

Universal communication services are provided by a universal service operator (OUO), a recognized winner in tenders for the right to provide universal communication services (UUS) in accordance with the decision of the tender committee (in accordance with the Rules for holding a tender for the right to provide universal communication services, approved by the Government of the Russian Federation of 22 April 2005 N 248).

The provision of universal services implies the provision of a minimum amount of telecommunication services in all localities.

Requirements for the provision of universal telephone services using payphones are determined by Article 57, Clause 2 of the Federal Law "On Communications":

· The time during which a user of communication services reaches a payphone without using a vehicle should not exceed one hour;

· In each settlement at least one payphone should be installed with free access to emergency operational services.

In 2006-2007. The issuer is recognized as the winner in open tenders for the right to provide universal telephone services using payphones. The number of installed payphones is shown in the table.

* UUS - universal telephone services

Losses caused by the provision of universal communication services are determined as the difference between the Issuer's income from the provision of universal communication services and the costs incurred by him in the provision of these services, and are subject to compensation in an amount not exceeding the amount of compensation for losses established in the agreement on the conditions for the provision of universal communication services , concluded based on the results of the competition.

There are risks of refusal to receive compensation for losses of the Issuer in connection with the provision of universal telephone services using payphones or receiving compensation not in full from the universal service reserve in view of:

· Violation of the deadlines for fulfilling contracts for the organization of universal communication services; untimely commissioning of payphones due to the long period of obtaining permits for the use of radio frequencies;

· Failure to comply with the requirements of regulatory enactments for the organization of accounting for income and expenses for universal communication services;

Accounting of expenses for the provision of universal communication services in an incomplete volume:

ь poorly organized accounting;

ь legislative restrictions on the attribution of expenses (inconsistency between the periods of amortization and the terms of contracts).

5. Licensing

Changes in the licensing conditions for certain communication services may entail the need to redistribute resources and change the Issuer's plans to provide these services.

6. Implementation social projects

Increase in the volume of projects social significance and special projects performed by the Issuer within the framework of federal and regional targeted programs(the program for the provision of Universal Telecommunications Services, the provision of a closed numbering system (Order of the Ministry of Information Technologies and Communications No. 142 of 11/17/2006) - increasing the level of digitalization) aimed at developing the infocommunication infrastructure, as well as expanding the range and improving the quality of telecommunications services provided, may lead to a reduction in funding parts of payback projects that form the investment program. lead to a decrease in the return on investment programs of the Issuer and loss of income in future periods.

Risks associated with possible changes in prices for raw materials, services used by the issuer in its activities, and their impact on the issuer's activities and fulfillment of obligations under securities:

There are risks associated with an increase in the cost of equipment, electricity and other services that are necessary for the implementation of activities, which may lead to an increase in the cost of the Issuer's services and, as a consequence, a decrease in the profitability of the activity and the possibility of fulfilling obligations under securities by the Issuer.

Risks associated with possible changes in prices for products and / or services of the issuer (separately on the domestic and foreign markets), and their impact on the issuer's activities and the fulfillment of obligations under securities:

In accordance with Federal Law No. 147-FZ of 17.08.1995 "On Natural Monopolies", the Issuer is a natural monopolist and its activities are subject to regulation by the state authorities of the Russian Federation.

The list of regulated services was approved by the Decree of the Government of the Russian Federation of October 24, 2005 No. 637:

1. Sending internal written correspondence (postcards, letters, parcels).

2. Transmission of an internal telegram.

3. Provision of a long-distance telephone connection to a subscriber (user) of a fixed telephone network for the transmission of voice information, facsimile messages and data.

4. Distribution of all-Russian TV and radio programs.

5. Providing access to the local telephone network regardless of the type of subscriber line (wire line or radio line) of the fixed telephone network.

6. Provision of a local telephone connection to a subscriber (user) of a fixed telephone network for the transmission of voice information, facsimile messages and data (except for payphones).

7. Providing a subscriber line for permanent use, regardless of its type.

8. Provision of intra-zone telephone connection to a subscriber (user) of a fixed telephone network for the transmission of voice information, facsimile messages and data.

State regulation of the telecommunications industry introduces into the Issuer's activities risks and uncertainties associated with changes in tariffs for communication services for users and prices for connection services and traffic transmission for operators.

Changes in the regulated tariffs for the services of natural monopoly operators occur in accordance with the parameters of the forecast of the socio-economic development of the Russian Federation, approved by the Government of the Russian Federation, and requires approval by the state bodies of the Russian Federation, therefore, it may lag behind changes in the real economic situation and changes in the operator's costs.

Thus, for the Issuer there is a risk of refusal to change tariffs or untimely changes in tariffs, which reduces its competitiveness and may adversely affect the profitability of its activities and, accordingly, the ability of the Issuer to fulfill its obligations under securities.

Tariffs for unregulated communication services are set by the Issuer independently, taking into account consumer properties, quality and cost of services, market conditions (supply and demand ratios, tariffs for communication services offered by competitors).

Description of the issuer's actions in case of an unfavorable development of the market situation in order to minimize the specified risks:

As part of actions in the event of unfavorable market conditions, the Issuer plans to take the following actions:

Optimize the structure production costs;

· Revise the investment program downward;

· Adjust marketing policy taking into account the specific situation in the market;

· Change the structure of services provided in order to maximize profits.

As part of tactical actions, the Issuer plans to carry out the following activities:

The flow of traffic and subscribers in the cellular network Proactive work with the outflow of subscribers active information and promotion of tariff plans, the implementation of package offers

Consolidation of small operators' business Provision of Triple Play * services to its own subscriber base

Consideration of purchasing fragmented house chains with significant growth potential

* Triple Play is the concept of providing telecommunication services for telephony, Internet access and interactive television, organized through a single connection to a multiservice data transmission network.

Regional risks

Describes the risks associated with the political and economic situation in the country (countries) and the region in which the issuer is registered as a taxpayer and / or carries out its main activity, provided that the main activity of the issuer in such a country (region) brings 10 or more percent of income for last completed reporting period before the end date of the last reporting quarter.

The Issuer carries out its activities in the Russian Federation.

The main country risks are political and economic risks. Economic reforms and the development of legal, tax and administrative infrastructure that would meet the requirements of a market economy are continuing in Russia. The stability of the Russian economy will largely depend on the course of these reforms, as well as on the effectiveness of measures taken by the Government in the field of the economy, financial and monetary policy.

At present, the political situation in the country is stable, while the economic situation in Russia, starting from the second quarter of 2008, has shown a decline in growth rates. The Russian economy is subject to the influence of market fluctuations and a slowdown in the rate of economic development in the world economy. The decline in oil prices and the liquidity crisis contribute to the withdrawal of capital of non-resident investors from Russia, a decrease in the balance of trade turnover of the Russian Federation, a decrease in the country's international reserves and the devaluation of the ruble.

The global crisis has led to instability in the capital markets, a significant deterioration in liquidity in the banking sector and tightening of credit conditions within Russia. Despite the stabilization measures taken by the Russian Government to ensure liquidity and refinancing foreign loans of Russian banks and companies, there is uncertainty about the possibility of access to capital sources, as well as the cost of capital, which may affect financial position, results of operations and economic prospects of Russian enterprises.

General country risks are also typical for the Northwestern Federal District of the Russian Federation (NWFD) of the region where OJSC NWTelecom carries out its main activities. There is a risk that regional authorities will cut funding for telephony programs in their regions.

The deterioration of the economic situation in the NWFD entails a reduction in the number of industrial and agricultural enterprises of all forms of ownership operating in the region, an increase in unemployment, and a decrease in the effective demand of the population.

The proposed actions of the issuer in the event of a negative impact of changes in the situation in the country (countries) and the region on its activities are indicated.

The existing negative trends in the economy may lead to a slowdown in the implementation of the Issuer's investment program, a decrease in the growth in the volume of communication services provided by the Issuer in the territory of the Okrug, and a slowdown in the growth rate of the income base. In this case, the Issuer plans to fulfill obligations under securities at the expense of income from operating activities, and, if necessary, at the expense of short-term loans from commercial banks.

Despite the global financial crisis, the rating agency Standard & Poor's in 2009 confirmed the long-term credit rating of the Issuer at the same level: the international credit rating was confirmed at the level "BB-", the forecast "Stable"; Issuer's national rating was confirmed at the same level - "ru AA-". Against the background of a decrease in both country and corporate credit ratings, maintaining the Issuer's credit rating at the same level confirms the Issuer's creditworthiness.

Describes the risks associated with possible military conflicts, the introduction of a state of emergency and strikes in the country (countries) and region in which the issuer is registered as a taxpayer and / or carries out its main activities.

The likelihood of military conflicts, the introduction of a state of emergency and strikes in the country and region in which the Issuer is registered as a taxpayer and carries out its activities is assessed as insignificant in order to consider these risks as circumstances that can significantly affect the Issuer's activities.

In the event of possible military conflicts, the imposition of a state of emergency and strikes, the Issuer will most likely be operatively subordinate to the power and military structures of the Russian Federation, since it provides a vital and state-important function of providing telecommunications services.

Describes the risks associated with the geographical features of the country (countries) and region in which the issuer is registered as a taxpayer and / or carries out its main activities, including the increased risk of natural disasters, possible termination of transport links due to remoteness and / or inaccessibility, etc. .NS.

The risks associated with the geographical features of the region, including the increased risk of natural disasters, the possible interruption of transport links due to remoteness and inaccessibility, are assessed as minimal.

Financial risks

Negative changes in the monetary policy in the country, the exchange rate and an increase in interest rates on funds attracted by the Issuer, as well as a significant increase in inflation rates, may lead to an increase in the Issuer's costs and, therefore, adversely affect the financial results of operations. In addition, the possibility of changes in the composition and professional level managers of the Issuer who may adversely affect the effectiveness of management decisions, including those related to the implementation of hedging in order to reduce the adverse consequences of the impact of the above risks.

The Issuer is exposed to the following financial risks:

1. Currency risks:

Decrease in world prices for raw materials, incl. for oil, may lead to a weakening of the ruble against the bi-currency basket (the benchmark for exchange rate policy Of the Central Bank Russia). A significant increase in exchange rates may increase the Issuer's costs, which may lead to a decrease in reserves and / or a decrease in the ability to service debts.

In the context of the devaluation of the ruble that took place at the end of 2008 in the first half of 2009, the ruble cost of servicing the debt portfolio increased. As of September 30, 2009, the Issuer's foreign exchange liabilities amounted to about USD 210 million and EUR 3.6 million. The main risks for foreign currency debt lie in the dollar portfolio.

Since the beginning of 2009, the Issuer's losses due to exchange rate differences amounted to about 200 million rubles.

Measures to reduce currency risk

Based on the market value of hedging currency risks, as well as taking into account the Issuer's plans to generate free cash flow during 2009, it is advisable to use various instruments to reduce the risks of currency payments during 2009-2012.

To reduce foreign exchange risks on payments in 2009, on June 10, 2009, free cash was converted in the amount of USD 33 million at the rate of RUB 30.90 / USD, of which USD 22 million were placed in short-term bank bills. These funds will be used to pay off foreign currency debt according to the schedule of payments in July 2009 January 2010. This eliminated the currency risks related to debt with payments in 2009.

In order to hedge currency risks on currency debt in 2010, in accordance with the decision of the Board of Directors of the Issuer, a series of forward transactions were concluded with ZAO CB Citibank on 09.07.2009 and 21.07.2009.

· Amount of transactions 93,324,175.84 US dollars;

The value date (Date of the transaction) and the forward rate are determined in accordance with the following schedule:

With regard to foreign currency debt, payments on which fall on 2011-2012, the Issuer will continue to monitor the market value of hedging instruments and, in the event of a favorable situation in the foreign exchange market, will enter into transactions to hedge the relevant risks. Also, currently work is underway to prepare the refinancing of part of the foreign currency debt with maturity in 2011-2012. when available long-term bank financing in rubles appears.

According to experts, the ability of the Government and the Central Bank of Russia to maintain a stable ruble exchange rate will depend on many economic factors, among which: the cost of the state of affairs in the commodity markets and capital markets, the rate of inflation and the maintenance of foreign exchange reserves at a sufficient level. In the event of a sharp change in the exchange rate to minimize the negative impact, the Issuer has the opportunity to reduce the share of foreign exchange liabilities, focusing on suppliers, settlements with which are carried out in rubles of the Russian Federation.

A significant devaluation of the ruble may have a negative impact on the Issuer's profitability indicators, since in this case, the increase in tariffs may not be sufficient to compensate for the drop in the volume of services in physical terms.

Proposed actions of the issuer in the event of a negative impact of changes in the exchange rate and interest rates on the issuer's activities.

In the event of a significant devaluation of the ruble and the occurrence of inflationary risks, the Issuer can take the following measures to reduce them:

Optimize (reduce) costs;

Revise the investment program;

Take measures to increase the turnover of accounts receivable.

The Issuer's exposure to risks associated with changes in the exchange rate of foreign currencies is moderate.

Market risks are characterized by the following factors:

1. Possible unfavorable trends in the economy and economic conditions of Russia.

Unfavorable financial or economic conditions are likely to entail a decrease in the business activity of consumers of the Issuer's products and, accordingly, their demand for communication services. In addition, buyers may be partially or completely unable to pay for the services received by the Issuer. Non-monetary methods (counter deliveries, bills of exchange, etc.) may be used as payment in such conditions, which will also have a negative impact on the financial position and liquidity of the Issuer.

In addition, necrosis is possible. Money The Issuer's bank accounts in the event of a crisis in the banking system of Russia and / or individual banks.

To reduce possible losses in the event of a crisis in the banking system of Russia, the Issuer intends to make efforts aimed at maintaining a high level of current liquidity, creating free lending limits in commercial banks, forming a portfolio of liabilities with a long average maturity and a uniform service schedule. The Issuer uses attraction tools aimed at domestic and Western participants in the financial market (syndicated loans). At the same time, funds are kept in banks with a high degree of reliability.

2. Changes in interest rates.

Changes in monetary policy in the country may lead to increased inflation, an increase in interest rates on borrowed funds used by the Issuer, and, accordingly, a significant increase in costs.

In the context of high volatility of interest rates on the Russian and international financial markets, the Issuer is exposed to the risk of possible losses if the cost of servicing financial obligations increases.

Depending on the nature of the change in interest rates, the following subtypes of credit risks can be distinguished:

· The risk of a general change in interest rates - the risk of an increase or decrease in interest rates for all investments in one or several currencies, regardless of their urgency and credit rating;

· The risk of changes in the structure of the interest rate curve - the risk of changes in rates for shorter investments in comparison with longer ones (or vice versa), possibly not associated with a change in the general level of interest rates;

· Risk of changes in credit spreads - the risk of changes in rates on investments with certain credit ratings compared to rates on investments with other ratings, possibly not related to changes in the general level of interest rates.

The issuer uses instruments with both floating and fixed interest rates, which made it possible to lengthen the borrowing period and expand the circle of potential investors. However, in the context of high volatility of interest rates on the Russian and international financial markets, the Issuer is exposed to the risk of possible losses if the cost of servicing financial obligations increases. An interest rate swap agreement (exchange of interest payments for a specific, pre-agreed notional amount on a specific date) can be used as a possible hedging instrument for interest rate risks.

As of September 30, 2009, the share of liabilities with a floating interest rate is 52.9% (while the share of liabilities without imposing restrictions on the maximum interest rate is 35.97%).

Currently, the LIBOR rate continues to remain at low levels. It is expected that in the conditions of the developing crisis in the real sector of the USA, rates will remain at the minimum level for quite a long time. In addition, as the financial crisis develops, there is a risk that the bank will refuse to use LIBOR as a basis for calculating interest rates and switch to calculating rates based on the average funding cost of creditor banks. In these circumstances, hedging the floating LIBOR rate is not appropriate.

Interest rate on the 5th bond issue in the amount of 3 billion rubles. was determined during the placement in May 2008 at the level of Mosprim + 2.12%, but according to the provisions of the Bond Prospectus, the maximum loan rate cannot exceed 15% per annum, which limits the maximum risk of losses.

To reduce the interest rate risk in the current unfavorable market environment, the Issuer will primarily raise new debt financing at a fixed interest rate.

In the event of a negative impact of changes in interest rates on activities, the Issuer can take the following measures to reduce them:

· Use of hedging instruments (interest rate swap);

· Limiting the share of liabilities with a floating interest rate;

· Revision of the investment program.

3. Fluctuations in prices for the Issuer's services.

On commercial activities The Issuer is significantly affected by price fluctuations for communication services (except for tariffs regulated by the antimonopoly authorities of the Russian Federation), the sales of which form the Issuer's income.

4. Possible changes in the composition and professional level of the Issuer's managers, as a result of which the effectiveness of the adopted and adopted management decisions may decrease.

Influence of inflation on payments on securities, critical, in the opinion of the issuer, inflation values, as well as the expected actions of the issuer to reduce this risk.

Inflation in Russia in accordance with the data of the Federal State Statistics Service (Rosstat) was:

According to the Issuer's estimates, the critical inflation rate at which the Issuer may face difficulties in fulfilling its obligations on securities is significantly higher than the inflation rate projected for the coming years, and amounts to 30-40% per annum.

An increase in the rate of price growth can lead to both a decrease in the consumption of communication services and an increase in the Issuer's costs (for example, due to an increase in prices for energy resources), the cost borrowed money and cause a decrease in profitability indicators.

The above risks form the liquidity risk, i.e. the likelihood of a loss due to a lack of funds within the required time frame and, as a consequence, the inability of the Issuer to fulfill its obligations. The occurrence of such a risky event may entail fines, penalties, damage to business reputation, etc.

Liquidity risk management is carried out by the Issuer by planning cash flows, analyzing planned and actual cash flows for the whole company, as well as in the context of branches.

In order to reduce liquidity risks, the Issuer maintains the volume of free bank credit limits at the level of at least 2.0 billion rubles, forms a loan portfolio with an average debt maturity of more than 2 years and a smoothed repayment schedule.

The indicators of the issuer's financial statements are most susceptible to change as a result of the influence of the specified financial risks (risks, the likelihood of their occurrence and the nature of changes in the reporting).

The main indicators of the Issuer's financial statements are profit and payables most susceptible to the influence of the above financial risks. To the revenue level financial risks have minimal impact. With the emergence of these risks, an increase in the cost of services rendered and a decrease in the Issuer's profit are possible, which, at least in part, can be offset by an increase in tariffs and a decrease in the volume of borrowed funds.

Legal risks

The Issuer is equally exposed to legal risks as other organizations of the Russian Federation. The Issuer operates as a communications operator and does not export goods, works or services, therefore, the legal risks associated with the Issuer's activities are described only for the internal market.

Risks associated with changes in foreign exchange regulation:

The risks associated with the possibility of changing currency regulation are currently considered by the Issuer as minimal, in connection with the Government's policy of liberalizing currency regulation.

Risks associated with changes in tax legislation

The risks associated with the possibility of changes in tax legislation are currently considered as standard for the ordinary business of the Issuer. However, Russian tax legislation in a number of cases allows for the possibility of different interpretations of its norms and is subject to frequent changes. In this regard, the tax authorities may take a more assertive position in the interpretation of tax legislation and tax calculations. As a result, the tax authorities may file claims for those transactions and accounting methods for which they did not previously file claims. As a result, significant additional taxes, penalties and fines can be assessed. Tax audits can cover three calendar years of activity immediately preceding the year of audit.

The provisions of the legislation as a whole are interpreted by the Issuer correctly and the likelihood of maintaining the position in which the Issuer is located, from the point of view of compliance with the requirements of tax legislation, is high. At the same time, there is an equally high probability that the Issuer took a position on certain issues of interpretation of legal requirements and the calculation of corresponding tax liabilities, which could subsequently be considered by the state fiscal authorities as lacking sufficient grounds. Thus, the Issuer assumes that there is a risk that the tax authorities may bring significant tax claims to the Issuer in relation to issues that allow for ambiguous interpretation of tax legislation, in particular, on the determination of revenue under interconnection and traffic transit agreements. It is not possible to determine the amount of claims for possible, but not filed claims, as well as to assess the likelihood of an unfavorable outcome.

The tax liabilities of the Issuer for the reporting and previous tax periods were calculated properly and fully reflected in accounting statements Issuer.

Risks associated with rule changes customs control and duties

Since a certain part of the equipment purchased by the Issuer for the provision of communication services is made of foreign-made components, a possible change in the rules of customs control and duties may carry certain risks for the Issuer associated with the rise in the cost of the acquired fixed assets.

Risks associated with changes in the requirements for licensing the issuer's core activities or licensing the rights to use objects that are in circulation is limited (including natural resources)

The main activity of the Issuer in accordance with the current legislation is subject to licensing.

The list of licensing conditions in accordance with the Federal Law "On Communications" is formed and updated annually by the Government of the Russian Federation. So, the RF Government decree of 18.02.2005 No. 87 "On approval of the list of names of communication services included in licenses and lists of licensing conditions" (as amended by RF Government decree of 24.01.2008 No. 23) established a list of names of communication services included in licenses , and lists of licensing conditions.

The licensing conditions established in previously issued licenses are valid in the part that does not contradict the current regulatory legal acts.

Risks associated with changes in judicial practice on issues related to the issuer's activities (including licensing issues), which may adversely affect the results of its activities, as well as the results of current legal proceedings in which the issuer participates

Changes in judicial practice on issues related to the Issuer's activities are possible due to the uncertainty of the specifics of legal regulation of certain types of services and conditions of economic activity in the communications industry related to the entry into force of the Federal Law "On Communications" dated 07.07.2003 No. 126-FZ and amendments to it, as well as with the entry into force of other regulatory legal acts. In addition, a change in judicial practice is also possible in connection with the development of the regulatory framework on the issues of state regulation of the Issuer's activities and the ambiguous interpretation of the current regulatory legal acts establishing methods and mechanisms of state regulation of activities in the field of communications. In this regard, despite the fact that the Issuer is not currently involved in litigation that could negatively affect the results of its financial and economic activities, there is a risk of qualitatively new types of litigation.

The possibility of unfavorable for the Issuer changes in the existing judicial practice on issues related to the possible qualification of the benefits received by the Issuer in connection with the free use of non-residential premises as an economic benefit and, accordingly, non-operating income of the Issuer is also considered as a legal risk (clause 2 of the Information letters of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 22.12.2005. No. 98)

Activity risks

Risks associated with current litigation in which the Issuer is involved:

Currently, the Issuer does not participate in legal proceedings as a defendant, in which, if the claim were satisfied, the Issuer's existence would be jeopardized.

The Issuer is a defendant in a number of arbitration proceedings. However, in the opinion of the Issuer, the results of these processes will not have a significant impact on the financial position of the Issuer. An exception is the litigation taking place in the Arbitration Court of St. Petersburg and the Leningrad Region, at the request of the Issuer to challenge the Resolution of the Federal Antimonopoly Service for St. Petersburg dated 12.11.2008 No. 00 rubles) for committing an administrative offense, liability for which is provided for by Art. 14.31 of the Administrative Code of the Russian Federation. At present, by the Decision of the Arbitration Court of St. Petersburg and the Leningrad Region, the consideration of the case was scheduled for 05.11.2009 (By the Decision of the Arbitration Court of St. Petersburg and the Leningrad Region dated 26.01.2009, the decision and order of the OFAS dated 01.09.2008 in case No. The decision of the Thirteenth Arbitration Court of Appeal dated 18.05.2009 canceled the decision of the Arbitration Court of St. Petersburg and the Leningrad Region dated 26.01.2009. The decision of the FAS SZO dated 12.08.2009 upheld the decision of the Arbitration Court of St. Petersburg and Leningrad Region dated 26.01.2009) ...

There is a risk of bringing the Issuer to tax liability for committing a tax offense due to the ambiguous interpretation of the tax legislation of the Russian Federation.

The Issuer's management believes that the tax authorities have no legal grounds for additional taxes, penalties and fines, and, if necessary, plans to defend its position in court.

Risks associated with the inability to extend the issuer's license to conduct a certain type of activity or to use objects that are in circulation is limited (including natural resources):

The conditions for obtaining new licenses for telecom operators and the renewal of existing ones are determined by the federal executive body, whose functions are currently performed by the Ministry of Communications and Mass Media of the Russian Federation. The Ministry of Communications and Mass Media of the Russian Federation has the right to determine the method of issuing a license for certain types services and for certain territories of the Russian Federation - on a competitive basis or based on the results of consideration of an application from a telecom operator.

Licensing of activities in the field of communication services is carried out by the Federal Service for Supervision in the Field of Communications, information technologies and mass communications (Roskomnadzor).

The conditions for extending the validity of licenses is that the licensee carries out his activities without violating license requirements, which is established by regular inspections of authorized supervisory bodies. In the case of activities related to the use of limited natural resource(radio frequency spectrum) it is possible to make decisions of the State Commission on Radio Frequencies, establishing restrictions on the use of individual bands of the radio frequency spectrum or on the use of frequency bands on a competitive basis. The revision of the plans for the allocation of frequency bands in accordance with the Federal Law "On Communications" is carried out at least once every ten years.

The licenses of OJSC NWTelecom for the main activities expire at different times in the range of 2010-2013. and can be extended after submitting an application to Roskomnadzor.

OJSC NWTelecom has no guarantees that upon the expiration of the validity period the licenses will be extended and there will be no increase in obligations and / or reduction of rights under the terms of the extended licenses, which will be associated with increased costs and, possibly, a restriction in the area of ​​provision of communication services. If the Issuer is unable to renew the current licenses or obtain renewed licenses on conditions comparable to the current conditions, it will be forced to reduce the volume of services provided, which will entail a decrease in the number of subscribers. At the same time, the minimum validity period of licenses for the right to provide communication services, which have the largest share in the structure of the Issuer's income, is five years, which reduces the risk of uncertainty regarding license renewal in the medium term.

The Issuer's management believes that in the future, the existing licenses will be renewed without additional costs in the normal course of business. The licensing conditions established in previously issued licenses are valid to the extent that they do not contradict the current regulatory legal acts.

Risks associated with the possible liability of the issuer for the debts of third parties, including the issuer's subsidiaries:

The issuer did not issue guarantees for the obligations of third parties.

The risks of liability for the debts of subsidiaries are insignificant, since the Issuer has no right to give instructions binding on subsidiaries (such a right is not stipulated either by the charters of subsidiaries or by agreements with them).

Risks associated with the possible loss of consumers, whose turnover accounts for at least 10 percent of the total proceeds from the sale of the issuer's products (works, services): there are no such consumers.

Activity

The current situation in the market of the Northwestern Federal District (NWFD) is characterized by the following factors:

· High penetration of cellular communications leads to the substitution of fixed communications services and a reduction in the number of subscriber lines. There is a decline in the rate of installations of fixed telephones. There is a decrease in the consumption of local, zonal traffic due to the overflow in the cellular network. SPS operators apply a subscriber retention policy by reducing tariffs for voice traffic and promoting additional services.

· The market for local telephone communication services has stabilized, mainly due to the growth of tariff revenues, the processes of migration of BtC subscribers to cellular networks are characteristic.

The market for long-distance and area communication services is characterized by regular decline retail tariffs, an active tariff policy is carried out by ATP operators. There is a flow of zonal traffic from fixed networks to the networks of operators of the SPS and a flow of mg / ml traffic in the IP network.

· The most dynamically developing market of services for access to the Internet through dedicated channels and data transmission (VPN), demand exceeds supply. Operators of KTV, Internet providers and SPS operators demonstrate high activity in the market for access to the Internet with the provision of additional services and a variety of content. The growth of the subscriber base is provided by both new connections and the replacement of dial-up access services with dedicated ones.

Strengthening the processes of global convergence of services based on IMS networks, blurring the boundaries between communication markets, information technologies and mass media entails an expansion of the range of services included in the industry, ensuring the dynamic pace of development of the industry and intensifying competition for the provision of integrated solutions among companies that have not previously being direct competitors.

OJSC NWT takes into account the following typical trends in the industry.

Trends in changing industry boundaries

Strengthening the processes of global convergence of services based on IMS networks, blurring the boundaries between communication markets, information technology and mass media entails an expansion of the range of services included in the industry, ensuring the dynamic pace of development of the industry and intensifying competition for the provision of integrated solutions among companies that were not previously direct competitors. The changes will be due to:

Changes in the conditions for the provision of telephone services:

· Introduction of ten-digit numbering on local telephone networks

· Implementation of solutions based on Fixed-Mobile Convergence (FMC) technology on local telephone networks.

Completion of the liberalization process:

Completion of the process of demonopolization of the long-distance communication services market

Demonopolization of the last mile (LLU)

Changes in the conditions for regulating inter-operator relations:

Regulation of the cost of connection and traffic transmission

Trends in the structure of demand

The main expected changes in the structure of demand:

· Increase in demand in the "Population" segment for complex services based on Triple Play, interactive services and applications

· Increase in the demand of the Organizations segment for complex and interregional solutions

· Increase in demand for data transmission services and Internet by segment " Wholesale market"

Trends in the geography of demand

Concentration of the highest growth rates in the consumption of new services in large and medium-sized cities (regional centers), increased competition between operators in these markets

Gradual saturation of the Internet market in St. Petersburg, shift of development to regional markets

Reducing the demand for communication services in rural regions, regions with a low standard of living

· The presence of unsatisfied demand for operator services in the northern regions of the Northwestern Federal District and in the Leningrad Region.

Typical market trends

segment "Population":

· Growth in the penetration of Internet services among households (from 32.5% in 2007 to 60.3% in 2014, the forecast of OJSC NWTelecom);

· An increase in demand for modern services will increase the number of households receiving a range of services (telephony + Internet + TV);

· Reduction of consumption of traditional fixed telephony services due to traffic flow in the networks of mobile operators;

· The dynamic development of Internet services will lead to an increase in the share of promising services in the structure of revenue from communication services;

· Replacement of dial-up access services with dedicated ones will be further developed, while dedicated connections will become a standard for the mass market (B2C) and the basis for a set of standard solutions for the corporate segment (B2B);

Strengthening the processes of global convergence of services based on IMS networks, blurring the boundaries between the communication markets, information technology and mass media, the introduction of services for (B2C) based on a single package (Triple Play) will generate competition for the provision of integrated solutions among companies that have not previously being direct competitors;

· An increase in the share of income from the population (B2C) in the revenue structure due to the active promotion of services of integrated solutions based on Triple Play, the provision of interactive services and applications, the introduction of Fixed-Mobile Convergence (FMC) technologies will allow maintaining high growth rates.

segment "Organizations":

· Increased demand for integrated solutions from one operator for telephony, Internet and data transmission;

· Growing demand for high-speed data transmission services;

· Growing demand for unification of remote offices of companies and business partners into a single corporate network (VPN);

· Increase in consumption of mobile services;

· The presence of unmet demand for telephony services in the group "small and medium business".

segment "Operators":

· Aggravation of competition in the market of network resources due to the active construction by operators of their own communication networks and, accordingly, a decrease in prices for lease of network infrastructure;

· Consolidation of telecom operators into large holdings, which can significantly reduce the cost of providing services;

Reduced demand for local call initiation services (with the active development of broadband access)

· Strengthening the market positions of ATP operators by providing Internet services and reducing tariffs for long-distance / international and intra-zone connections.

Overall score the results of the activities of OJSC NWT.

The Issuer provides local and intrazonal telephone communication services; access to the Internet; data transmission network services; telematic services; intelligent communication network services and ISDN digital communication network services; MCC services; services for leasing physical channels and communication paths; information and reference services. In addition, NWTelecom acts as a base operator, the network infrastructure of which is used by all alternative operators, including mobile operators.

The dynamics of the Issuer's market share, determined according to the Methodology for Determining the Share of OJSC NWTelecom in the regional markets of telecommunications services in the Northwestern Federal District, is shown in the table.

Conditions

Competition is a market factor influencing the Issuer and shaping the conditions for behavior in the Issuer's market.

V currently both the addition of a wired telephone set with mobile communication services is taking place, and a tendency has emerged to replace fixed communication with cellular. The introduction of a time-based call recording system with the option of choosing a tariff plan, implemented in early 2007, intensified competition, forcing subscribers to think about the need for a fixed telephone. This may entail an increase in the number of telephone sets being removed and, as a result, a reduction in the subscriber base.

To minimize the risk of reducing the subscriber base when introducing a time-based call recording system, the Issuer decided not to introduce the maximum tariff approved by Federal Service on tariffs as a limit, by setting a reduced tariff in order to keep subscribers on an unlimited tariff plan, which is most beneficial for the Issuer. The distribution of the subscriber base by tariff plans stabilized by the end of 2007. Only from September 1, 2008, the Issuer increased to the maximum tariff for the unlimited tariff plan for individuals. This made it possible to increase the Issuer's income in 2008 by 161 million rubles. In addition, in accordance with the order of the Federal Tariff Service of the Russian Federation dated November 28, 2008 No. 299-s / 4, from March 1, 2009 the Issuer has increased tariffs for local telephone services. The weighted average index of changes in tariffs for all tariff plans averaged 5.9% for the Company. This change will allow the Issuer to receive 526 million rubles in 2009. additional income ( additional income for 7 months of 2009 amounted to 350 million rubles).

There is also little competition from alternative operators in terms of installing telephones in new buildings. Alternative operators attract subscribers with the promptness of resolving issues and the possibility of a one-time complex provision of services.

The advantages of OJSC North-West Telecom are its developed own infrastructure, which makes it possible to install telephones at any point in the city with the subsequent provision of a complete list of modern telecommunication services.

Internet access services are one of the fastest growing areas of activity.

Access to the Internet using dial-up technology is a service for which the company has a clear competitive advantage as an operator with a well-developed infrastructure of its own. The degree of NWTelecom's presence in the dial-up access services market is leading. A significant advantage of NWTelecom is the ability to provide dial-up Internet access services on credit under the Advance trademark to any subscriber who has a phone from NWTelecom without additional activation by the subscriber of this service (the ability to use it is registered by default). In connection with the trend of the flow of subscribers of dial-up access to the Internet to dedicated access, the market for dial-up access services "collapses", competing operators cease their activities in this market. The slowdown of the Issuer's activity, due to its leading position, occurs at a slower pace.

Alternative operators and home networks are actively developing in the market of broadband access for individuals, in particular in St. Petersburg Z-Telecom (Interzet, 114 thousand subscribers), TKT (Your Internet, 165 thousand subscribers), Vimpelcom (Beeline 112 thousand subscribers). In addition, mobile operators are serious about promoting mobile Internet services.

In addition, it should be noted that in future periods, the impact of integrated operators on the Issuer's activities is possible. For example, the cellular operator OJSC Vimpelcom has strengthened its position by merging with Golden Telecom, and already now, under a single brand Beeline Business, provides customers with a full range of communication services: from fixed-line to mobile.

The advantage of OJSC NWT is the availability of its own networks, which provides almost 100% coverage of subscribers with the technical ability to provide communication services. The PON network is being introduced, which makes it possible to provide not only dedicated access services for more high speeds than the existing infrastructure for ADSL technology, but also a wide range of modern communication services.

The main strategy of OJSC NWT, aimed at leveling the factors

The strategy of NWTelecom to retain and increase its shares in the listed markets is as follows:

· Carrying out a policy of qualitative changes in the business processes of sales and service with the application of the philosophy of customer focus;

· Increasing the efficiency of work with large corporate clients through the introduction of the Institute Project Manager, responsible for the preparation and implementation of technical solutions;

· Formation of niche products that meet the basic needs of each of the segments;

· Promotion of complex solutions.

Methods used by OJSC North-West Telecom and methods that the Issuer plans to use in the future to reduce the negative effect of factors and conditions affecting the Issuer's activities.

It is planned to use the main competitive advantages of the Issuer.

The main directions of the Issuer's activities aimed at developing competitive advantages are:

· Organization of strategic protection of their networks, both from unauthorized call termination and unauthorized call initiation;

· Efficient use and development of network and infrastructure resources;

· Increasing organizational efficiency;

· A radical increase in the role of marketing and sales in decision-making;

· Formation and provision of packages of integrated services with savings of clients' funds;

· Changing the principles of work in the "corporate clients" segment on the basis of long-term partnership relations with the organization of an active model of "direct" sales.

Significant events / factors that can most negatively affect the possibility of NWTelecom getting the same or better results in the future as compared to the results obtained for the last reporting period, as well as the likelihood of such events (occurrence of factors).

Possible factors and their degree of probability:

The probability of this step on the part of mobile operators is assessed as not high, since revenues from voice traffic in cellular networks occupy a significant part in the structure of revenues, the decrease in which at this stage cannot be compensated for by revenues from other services.

Describes significant events / factors that can improve the results of OJSC NWTelecom's activities, and the likelihood of their occurrence, as well as the duration of their action.

· Development of a group of promising services based on broadband data transmission services;

· Retention of at least 48% of subscribers of local communication services on an "unlimited" tariff plan;

· Offer of services in a package.

The probability of the onset of positive factors is assessed by the Issuer as high, their duration depends on the general economic development of the Russian Federation and regulation of the telecommunications sector.

Competitors

Analysis of the competitive environment

The main competitors of NWTelecom:

Group 1 federal mobile operators (Megafon, MTS, Vimpelcom)

Group 2 federal and regional fixed-line operators (Vimpelcom, Transtelecom, Peterstar)

Group 3 local (local) operators (home networks, departmental operators)

Competitors development dynamics:

Operators of cellular mobile communications - Megafon, MTS, Vimpelcom with an average annual income growth of 107% with a gradual decrease in profitability to 104% in 2013

Household network operators, cable television operators - are characterized by an increasing dynamics of development with an average annual growth rate of 146%, with a peak of development in 2008 2009.

· Alternative telecom operators. The pace of development corresponds to the development of services in which the operator specializes (Internet, operator relations)

Possible business policy changes:

Marketing: Creation of fixed-line networks by cellular operators, offering advantageous tariff plans, providing Triple Play services by alternative operators, creating alliances of small operators

Technological: Transition of all services to the IP level, development of Wi Fi, convergence of networks

Regulatory: tightening control over the content of home networks, protest against the regulation of ATP operators

Competitors' likely moves

Entering regional markets, enhancing activities in regional and district centers of regions

Active promotion of services in high-income segments and capture of large clients of the Issuer

Absorption of developed companies in regional markets and competition across the entire geography of the Issuer's operation

Reduced competitor prices for zone termination / call initiation

Weak sides OJSC NWT

The Company's launch of new products on the market is slower than competitors

The level of service of competitors is significantly higher

Customer loyalty level is lower than that of competitors

· There are no significant differences in technological equipment, however, the Company has a significant share of analogue equipment on the PSTN.

The main factors creating a competitive advantage of OJSC NWT

Population:

Complex of modern services

Attractive rates

High level of service

Technical availability of services

· Provision of services in a package

Provision of services on credit (settlements upon the fact of services rendered at the end of the month)

Brand awareness

Organizations:

High level of service

Attractive rates

Providing a range of services from one operator

Availability of niche product offerings

Operators

Availability of our own developed network infrastructure with the possibility of redundancy

Availability of a wide range of network resources and services

The most acute competition for the Issuer is:

· Universal operators in the corporate segment of users, primarily in St. Petersburg, regional and republican centers.

· Operators providing Internet access services and voice services over data transmission networks.

Competitors' successful actions are mainly characterized by the creation of product value with distinctive properties for specific consumer segments.

Resource topic: Internet access, hosting
Site region: Petersburg
Registered: 29.12.2006

Information about the website www.nwtelecom.ru: Information about the company (territory of activity, management, analytical indicators, addresses of branches, etc.). Diverse information for investors and shareholders.

Main domain: www.nwtelecom.ru
Registered page: http://www.nwtelecom.ru/

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