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GLOBALSTAR: 3 YEARS IN THE RUSSIAN MARKET

Some years ago a mobile telephone was considered a rarity and not many could afford such luxury. Today cellular services are affordable practically to everyone. Cellular networks cover majority of cities and almost the whole European part of Russia. But there are still a lot of "white spots" in the Russian territory where not only cellular, but traditional communications are unavailable. Frequently satellite communications turn out the only possibility to solve numerous problems there.

Satellite communications systems are notable for high reliability, simplicity of deployment and operation. At present there are many different personal satellite communications systems and Globalstar is one of the most widely used systems.

The start of commercial revenue operation of the Globalstar global mobile satellite communications system was formally announced at Geneva-Telecom Exhibition in October 1999. A year later, on November 1, 2000, the provision of the Globalstar services was launched throughout Russia.

The exclusive rights to provision of the Globalstar services in Russia belong to CJSC GlobalTel, a joint venture between OJSC Rostelecom and international consortium Globalstar L.P. CJSC GlobalTel ensures reliable satellite communications not only throughout the Russian territory below 74° Northern latitude, but also in the CIS countries: Central Asia and Caucasus, as well as Mongolia, Japan, Afghanistan, offshore of the Pacific ocean, the Baltic, Caspian and Northern seas.

3 years ago CJSC GlobalTel started with a hundred subscribers, and the first thousand of sold satellite phones was a milestone event for our employees. During the last years CJSC GlobalTel has become well-known in Russia; today the Company has got more than 12 thousand subscribers. Among our customers are large Russian and international companies and organizations, ministries and departments as well as private persons.

The commercial success of CJSC GlobalTel is attributed to the global coverage, which is the major and indisputable advantage of the satellite communications in general and the Globalstar system in particular, as well as voice communications of high quality, the equipment assortment and wide range of provided services with relatively low tariffs. From the launch of the Globalstar system operation CJSC GlobalTel has reduced its tariffs nearly 1.5 times. Now one minute of use costs 69c. General Director of CJSC GlobalTel Mr. A. Ostapchuk says the tendency of lowering the tariffs will remain.

A positive tendency to make seasonal discounts for subscribers is taking shape in our Company. Now the Autumn Programme of Discounts dedicated to the 3rd anniversary of the system's commercial operation in Russia is underway. The Programme envisages significant reduction of the equipment prices. For $499 only you can purchase a satellite phone and get the possibility to call any time any place world over and irrespective of your location.

To date our subscriber has got the choice of four satellite mobile phones, a fixed satellite user terminal or a car kit and special purpose equipment. Mobile satellite handsets can operate both in satellite and cellular modes, which is very convenient for subscribers.

CJSC GlobalTel is in constant search of new technical solutions. Such services as data transfer, SMS, satellite mail, Internet and FTP-service are available now. Even a fax message can be sent via satellite.

Our Company takes part in federal and regional programmes, in particular in the programme of telephonisation of remote territories in the Russian Federation, offers complete technical solutions for various vertical markets (monitoring, SCADA, etc.)

The satellite communication is swiftly developing, during the year of 2003 there was a marked upsurge in the satellite communications market. Globalstar services are used in practically all branches and in all regions of Russia. The subscribers are offered new services, the quality of which keeps growing while their prices are going down. The Globalstar satellite communications opens unique possibilities: if you sing up to its services you will always be in touch.

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