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July 14, 2006
KIEV, Ukraine -- Golden Telecom, Inc. ("Golden Telecom" or "Company") (NASDAQ: GLDN), a leading facilities-based provider of integrated telecommunications and Internet services in major population centers throughout Russia and other countries of the Commonwealth of Independent States ("CIS"), announces the signing of a unilateral national roaming services agreement between its subsidiary Golden Telecom (Ukraine) LLC ("Golden Telecom (Ukraine)") and Ukrainian Radio Systems CJSC ("Ukrainian Radio Systems"). Golden Telecom (Ukraine) provides cellular communication services under the Golden Telecom GSM trademark and Ukrainian Radio Systems provides cellular services under the Beeline trademark. The agreement between Golden Telecom (Ukraine) and Ukrainian Radio Systems is the first of its kind in the history of the Ukrainian telecommunications market.
As previously announced, in May 2006, the National Commission for Communications Regulation in Ukraine issued a 15-year license authorizing Golden Telecom (Ukraine) to provide wireless communication services in the GSM-1800 standard in various regions of Ukraine in addition to its current GSM networks in Kiev and Odessa. The new license covers approximately 86% of Ukraine territory with an overall population of 38 million people. The license will enable Golden Telecom (Ukraine) to provide wireless communication and converging services to approximately 81% of Ukraine's population.
Besides, the agreement between Golden Telecom (Ukraine) and Ukrainian Radio Systems will enable the Golden Telecom subscribers for the first time to be able to use national roaming services throughout the entire territory of Ukraine covered by Beeline. Today, this area encompasses 245 cities and more than 2,000 other residential areas. More than 50% of Ukraine's population lives within this coverage area and it is projected that by the end of 2006 Beeline's coverage will embrace approximately 80% of the country's population.
"I hope that this unique agreement on provision of national roaming services to Golden Telecom subscribers within the Beeline network will start mutually beneficial cooperation between the two companies in the Ukrainian market. The project has become technically possible thanks to the modernization of the Beeline network with Ericsson equipment. The network will now be able to provide its guest subscribers with world level quality services," commented Eugene Malinovsky, Deputy Director General of Ukrainian Radio Systems in charge of commercial issues.
Golden Telecom Inc.
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