LD and local rates are to be lowered effective October 1, 2004 for all categories of users in intra-zonal routes 1 (up to 100 km) and 2 (from 101 to 600 km) by 5% on work days from 7 am to 9 pm at the following branches of Svyazinform: Astrakhan region, Volgogradelektrosvyaz, Kubanelektrosvyaz, Rostovsvyaz and Elektrosvyaz Stavropol krai, in accordance with Decision # r-15-s/1 dated August 31, 2004 “On the approval of LD tariffs for telephone services provided by STC”, approved under FST Order No. 61/s dated August 31, 2004.

Under Decision # r-15-s/1 dated August 31, 2004 “On the approval of LD tariffs for telephone services provided by STC”, approved under FST Order No. 61/s dated August 31, 2004, tariffs were hiked by an average of 30% for households and 26.4% for businesses.

On the basis of tariff revision for local and LD telephone rates effective October 1, 2004 the average-weighed tariff increase will be 7.6%.

 The average monthly subscriber fee for households will been raised from RUR 105.50 to RUR 139, and for rural subscribers from RUR 97.50 to 123.  Average fees for business subscribers will be raised from RUR 140 to RUR 177.