News Release

Redcom Places Russia's Far East Region on Global Map of Digital TV and Broadband Multimedia

Consumers to Enjoy Affordable Access and Improved Quality of Service on Metro Ethernet Network From Cisco
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Oct 23, 2008

MOSCOW, October 23, 2008 - Consumers in Russia's eastern region of Khabarovsk will now be able to enjoy affordable access to high-definition digital TV, video on demand and other multimedia services through a Metro Multiservice Transport Network (MMTN) that is based on Cisco® technology. Redcom, Khabarovsk's leading telecommunications service provider, has bolstered the region's position in the global high-speed broadband services market with a strong network backbone that is scalable and fault-tolerant with high levels of security.

The modernization and expansion of Redcom's network was necessitated by consumer demand for additional and enhanced telecommunication and multimedia services with a very high quality of service (QoS). Because of the ability of Cisco technology to scale to specific requirements and to deliver a high availability of service, Redcom selected Cisco's Ethernet Fiber to the Home solution with Metro Ethernet technology.

Cisco Metro Ethernet solutions underpin an advanced high-speed, multifunctional broadband network that supports a wide range of features and multimedia services from multichannel radio to multimedia communications, high-definition Internet Protocol television (IPTV)and video on demand. With Metro Ethernet, Redcom can now also differentiate traffic, offer flexible billing options to consumers, and expand bandwidth to meet peaks in service demand.

Dmitry Alexeevich Tkachenko, Redcom's chief executive officer, said: "To maintain customer loyalty and succeed in a highly competitive market, it is important that Redcom be able to offer a multitude of services over high-speed broadband in line with global advancements. Cisco technology not only helps us provision the latest services with the ability to scale our network to mirror consumer demand, but it also enables us to configure and replace network equipment without hampering subscriber services. We are confident our choice of Cisco will help raise customer trust in Redcom."

Redcom's modernization project was launched in September 2007. Cisco Capital's leasing program helped enable Redcom to procure networking hardware on flexible terms from INLINE Technologies (a Cisco Gold Certified Partner) and complete the upgrade in less than one year. As a result, the Metro Multiservice Transport Network has helped Redcom to radically expand the range of end-user services. These now include high-speed broadband for enterprise and home users, virtual local area networks, Layer 3 virtual private networks, high-definition IPTV, and IP telephony.

Michael Chursin, Cisco manager for Russia's Far East region, said: "Cisco's work with Redcom benefits consumers in the Khabarovsk region as they now can have access to broadband services in line with global standards. Operational leasing of advanced hardware enables Redcom to offer its subscribers new high-quality services and flexible tariffs while raising the resilience and expanding the capacity of its network on demand."

Redcom has been operating in the telecommunications market for more than 14 years, with more 20,000 subscribers in the city of Khabarovsk and in the Khabarovsk region. The Metro Multiservice Transport Network (MMTN) was jointly developed by Cisco and Redcom.

About Redcom

Redcom is a leading Internet provider in the Russian Far East. The company has been operating in the telecommunications market for more than 14 years. It has more than 20,000 subscribers in the city of Khabarovsk and in the Khabarovsk Region. More information is available at www.redcom.ru.