VELCOM Belrus

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FE "VELCOM" Ò GSM 900/1800 standard Ò (velcom and Privet trademarks) is the first cellular communications operator and official representative of the satellite communications operator "Globalstar" in the Republic of Belarus. The company started its commercial activity 16 April 1999.

MISSION

Together with our customers, we are moving ahead to enrich people`s lives with leading edge communication services.

GSM NETWORK DEVELOPMENT IN BELARUS

In compliance with the terms of the License issued by the Ministry of Telecommunications of Belarus the construction and development of GSM network in Belarus had been conducted during several phases.

I phase of the network construction was completed in April 1999 having covered the Belarusian capital and the territory of the international airport MinskÒ2 including the way to the airport. The company had only 10 base stations operating in April 1999.

During phase II GSM network covered all the regional centers, as well as the highway BrestÒMinskÒOrsha and the towns along the highway. Minsk network was under modernization also. Phase II was finalized in summer 2000. By the end of 2001, phase III of covering Belarus with mobile communications was finished ahead of time. Cellular communications from VELCOM were available on the territory populated with 76% of urban population. Coverage area included 44 towns and settlements.

By the end of 2002 almost 70 towns and settlements appeared on the coverage map of the operator, more than 87% of urban population could use the VELCOM communication services.

September 2004: the Company informed of signing agreements with the leading GSM equipment producers Ò Siemens and Ericsson Companies. As a result of this cooperation 334 new GSM 900&1800 base stations (2542 transceivers) were installed as well as switching and additional equipment was put into operation, including base for upgrading GPRS system, a new WAP gateway, version 2.0 and an MMS platform enabling exchange of colour pictures and other multimedia messages within the network. New GSM-equipment was used to provide VELCOM services to new towns, cover roads and districts where GSM communications were absent.

In July 2005 VELCOM concluded two more contracts with Ericsson and Siemens. Thus, VELCOM covered 35 towns and settlements, 47 agricultural complexes, motorways M10, M11, M12, P6, P20, P85, P99 at the same time considerably expanding the network capacity in Minsk, Gomel, Mogilev, Baranovichi, Zhlobin, Svetlogorsk, Rechitsa. Under the contracts, over 450 base stations were installed as well as switching and radio relay and other network equipment put into exploitation. On basis of recently purchased IN platform produced by Ericsson, the launch of additional service are planned to be introduced soon.

Likewise, in 2005 the company upgraded WAP-service having launched new WAP-gateway (2.0 version). In December, WAP throughput was improved and high-speed data transfer technology EDGE was introduced in Belarus for the first time.

In the course of the State program of the Belarusian villages rebirth for 2005-2010, 94 agricultural complexes are provided with VELCOM services. The base stations were placed on the following customs transitions: Beniakoni, Vidzy, Geraneny, ZaolÌsha, Lesnaya, Veselovka, Lyntupy and Privalka as well as in the region of the Augustovski channel, a unique hydro technical resort place near Grodno.

COVERAGE

VELCOM network embraces 88% of the territory of Belarus where more than 96% of the country population live. Today over 22219 transceivers situated in 1041 places of Belarus, 2570 base stations and 8 switch boards (3 in Minsk and per one in every regional centre) maintain VELCOM network operation.

VELCOM network operates at 26 customs points and railway & air customs transitions. The Company provided with entire coverage such highways as: М1/Е30 (Brest-Russian border), М2 (Мinsk-Аirport2), М3 (Мinsk-Vitebsk), М4 (Мinsk-Моgilev), М5 (Мinsk-Gomel), М6 (Мinsk-Volozhin-Grodno), М7 (Minsk-Оshmiany), М8 (Vitebsk-Gomel), М9 (Minsk ring road), Р-21 (Vitebsk-Russian border), Р23 (Minsk-Slutsk- Mikashevichi), Р28 (Мinsk-Мiadel), Р99 (Slonim-Volkovysk-Polish border). VELCOM also made better coverage quality along the motorways М10 (Gomel-Brest), M11 (Beniakoni-Lida-Slonim-М1/Е30), M12 (Коbrin-Мокrany), P17 (Brest-Мокrany), Р-20 (Vitebsk-Verhnedvinsk-Latvian border), P6 and Р88 (Pinsk-Stolin-David-Gorodok).

The company develops the network that meets the latest demands: functioning in two diapasons 900 & 1800 MHz, support of General Packet Radio Service technology (GPRS) and wireless access to Internet by means of WAP. VELCOM is the first and the only GSM operator who offered to its subscribers high-speed data transfer technology EDGE. Enhanced Frequency Rate service to improve the quality of sound and Frequency Hopping to protect against noise are implemented on the whole territory covered by the VELCOM network. Optimal frequency planning, provided by the best specialists of the country, trained in leading European companies, ensures high quality of communication.

SUBSCRIBERS BASE

The subscribers base of the company has been increasingly growing. By the end of 2001 there were 120 000 subscribers activated instead of 100 000 expected. The figure of 300 000 subscribers expected to be reached by the end of 2002 was reached and even exceeded already in September 2002. During the period April 2002 Û April 2003 VELCOM subscribers base grew almost threefoldÛ from 164 000 to 470 000 subscribers. As for April 2004 the number of VELCOM users came to 720 00 and in October 27 the millionth subscribers was activated to the network. Increase of subscribers base during the year 2005 amounted over 750 000 people. For the time being more than 3 227 000 subscribers use VELCOM services.

VALUE ADDED SERVICES (VAS)

The company offers to its subscribers numerous services , that made communications provided by VELCOM more comfortable and broadened possibilities of using a mobile phone. Together with the standard voice services VELCOM offers a wide range of value added services: international roaming , SMS, special tariffs for legal entities Closed Users Group, corporate tariff plans, fax and data transmission , voicemail , conference call, TWIN card activation, GSM-paging, renting of cell phones. "Favorite number" service launched in the midÒJanuary 2003, is now very popular with hundreds thousands of subscribers. VELCOM has bilateral roaming agreements with 299 operators in 147 countries of the world. This is the largest number of roaming partners among the Byelorussian cellular communications operators.

Besides this, VELCOM subscribers are given new services based on advanced technologies: new SIMÒcards "VELCOM menu" supporting STKÒtechnology, automatic customers service IVR (interactive voice response), "Express payment " cards (giving the opportunity to charge subscribers' account via SMS), WAP (wireless access to the Internet), SMSÒbased informational and entertaining services: informational SMS-info service (news, leisure, exchange rate, weather forecast and other useful rubrics), SMS-banking , SMS2Email & Email2SMS, Logos and melodies, SMS-flirt , SMS-games , SMS-roaming .

VELCOM is the first cellular operator that launched advanced Internet access technology Ò General Packet Radio Service (GPRS). Starting with June 2003 the GPRS technology is in commercial use. The company does not stop the process of developing and improving its services. In December 2002 the company demonstrated for the first time on the territory of Belarus the MMS technology (Multimedia Messaging Service) allowing exchange of photos, video files, color images, music and other media elements. November 2004: visitors of the VELCOM stand at the annual PTS exhibition saw the service in action and all interested were able to receive their "mobile" photos by e-mail. Starting with the 11th June 2005 the VELCOM MMS service is in commercial use.

In 2005 new services appeared which enable receiving on a mobile phone useful and interesting information including multimedia. Among novelties of 2005 are: MMS-info, SMS2ICQ , InformBuro, "Iz ruk v ruki" addvertisements via SMS, First legal aid, SMS-infoservice, service of personal pages SMSpages.

March, 30th the company started testing of a trial 3G VELCOM network. Third generation network allows high speeds of data transmission, downloading to a phone and changing of video files and large volumes of information, using mobile television, exploring Internet and a lot of other possibilities.

VELCOM subscribers are provided with a new technology of interactive communication between users and the operator's servicing applications in real time - USSD (Unstructured Supplementary Services Data) - allowing to request account balance, information about remaining minutes, MMS and GPRS-traffic included in monthly fee.

CUSTOMERS SERVICE

The care about customers is a top-priority task for the company. VELCOM subscribers are offered the most favorable services conditions and optimal tariff plans.

VELCOM Company offers a range of tariff plans especially focused on the corporate clients . These tariffs help to optimize costs while retaining high standards of communication and service quality. A personal manager is working with every large-scale corporate client.

VELCOM call center (short number 411, available 24 hours and free of charge when calling from a mobile phone on the territory of Belarus) helps subscribers solve any problem as soon as possible. New telephone numbers of VELCOM inquiry service are opened: 412 - information concerned the rest of means on account balance; 413 - the rest of minutes included in the monthly fee.

VELCOM subscribers are provided with the whole range of services in 50 sales and service offices. Eleven of them are located in Minsk, 3 in Vitebsk, in Mogilev and Grodno, per two in Pinsk, Gomel, Brest, Rechitsa, Lida & Zhlobin and per one in Bobruisk, Baranovichi, Molodechno, Zhodino, Soligorsk, Krichev, Slutsk, Orsha, Svetlogorsk, Polotsk, Borisov, Novopolotsk and Mozyr. For customers' convenience most of VELCOM sales and service offices work from 9.00 to 21.00 without breaks and days off.

Today VELCOM trademark is represented by 550 dealers' sales outlets in 145 Belarusian towns.

There are 10 ways of payment for mobile services available for VELCOM subscribers: with the help of "Express payment" cards, "RapidaBel" system, in VELCOM sales and service offices, post offices, banks, via ATM machines, with the help of the electronic "Berlio" cards, advisory-payment terminals of ÏPriorbankÓ Ltd., the services "Mobile banking" and "SMS-banking, EasyPay system and other Internet-payments". VELCOM has the widest network of payment-receiving locations that includes more than 10000 places on the whole territory of the Republic.

CONTRIBUTION TO BELARUS ECONOMY

As for today VELCOM is one of the largest investors in Belarus. The main priorities of the companyÌs investments are purchasing of new technologies and present-day equipment of the leading producers as well as creation of reliable infrastructure of the network.

VELCOM Company is also one of the largest taxpayers in Belarus. Upon the results of 2003 (data of December 2003 and January-May 2004) VELCOM ranks the 18th for the volume of taxes assigned to the budget of the country. More than $42 million was assigned to the budget of the country for the year 2004 as taxes and customs fees. VELCOM provides the largest volume of tax allocation to the budget among all the cellular operators in the country. As to the investments of 2005, the sum runs up to 75,5 million USD. About 163 milliard BR transferred to the budget and off-budget funds. Total volume of investments for the whole period of VELCOM activity comes to 293 million USD.

FE ÏVELCOMÓ provided more than 1100 people with jobs and contributed to appearance of more than 3000 vacancies across the country. Friendly professional team of link-minded persons Ò specialists of different departments providing construction and maintenance of the network, development of the enterprise and servicing our subscribers - is a basic of dynamic and successful company evolution.

SOCIAL PROJECTS

The company does not set aside such socially significant groups as people with low-income level and disabled people. VELCOM social support program encompasses various social status groups: disabled people, veterans of war, participants of the war in Afghanistan and people having certain benefits from the government. All these people are offered special reduced tariffs.

Different social and charity programs have become today an inseparable part of the VELCOM corporate strategy. VELCOM takes part in various charity actions, renders financial assistance to the "Belarusian children hospice", the "Association of diseased with disseminated sclerosis", Belarusian Republican Community "Children in disaster", the "International association of orphans, disabled and poor children", assists the "Women charity organization" actions and participates in charity donations to the Rehabilitation center Ò Charity home.

In summer 2004 as a part of the 60th anniversary of Belarus liberation celebration the VELCOM Company presented mobile phones to two hundred war veterans and activated them to the special tariff plan.

The leading sportsmen of the country: tennis-player Maxim Mirny and athletic sprinter Julia Nesterenko (she won gold medal at the Olympic Games 2004 in Athens at the short distance of 100 meters) are the main figures of the VELCOM advertising campaigns.

The company supports a number of cultural and sports events in Belarus. Regular assistance is rendered to the National Olympic Committee of the Republic of Belarus, to the Physical Education Academy, the Belarusian Tennis Association, and the Center of Olympic training for biathlon, the hockey club "Minsk-YunostÌ", the Belarusian dance society. VELCOM regularly sponsors the Davis Cup tennis competitions in Belarus and abroad.