Intel, Comstar Collaborate to Develop Mobile WiMAX in Russia

MOSCOW.– In an effort to bring people faster, lower cost and a truly mobile, data broadband technology, Comstar, Russia’s leading telecomm provider, and Intel Corporation today announced a collaboration to develop mobile WiMAX in Russia.

The joint effort will initially focus on building a city-wide mobile WiMAX network in Moscow. Comstar plans to use its 2.5-2.7Ghz spectrum footprint in the city to build the network and is targeting its commercial launch for late 2008. Intel will drive an ecosystem of the client devices with embedded WiMAX solutions.

“We pay great attention on collaboration with Intel,” said Comstar President Sergey Pridantsev. “By investing in joint efforts we plan to significantly increase availability of mobile wireless communications and provide effective ubiquitous Internet access for all subscribers at any time in any place. We expect our leadership as a broadband service provider to be reinforced due to collaboration with Intel.”

Intel is already developing embedded mobile WiMAX solutions for notebook PCs and ultra mobile and mobile Internet devices. Starting in mid-2008 the company will offer its first embedded mobile WiMAX/Wi-Fi module, codenamed “Echo Peak,” with its next-generation Intel® Centrino® processor technology for notebooks and ultra-mobile devices. A solution optimized for mobile Internet devices with low-power consumption, codenamed “Baxter Peak,” is also expected to be available next year.

“The effort between Comstar and Intel to bring mobile WiMAX to the people of Russia underscores the cost, performance and capability of this technology to give people a truly mobile Internet experience,” said Sriram Viswanathan, vice president, Intel Capital, general manager, Intel WiMAX Program Office. “The commitment to build mobile WiMAX networks continues to grow globally and we expect to see initial deployments in a number of markets starting in 2008 and growing throughout 2009 and beyond.”

Mobile WiMAX is a broadband wireless technology that provides low-cost, multi-megabit speed, and great throughput for accessing large amounts of such data as movies and multi-media content. It is based on the IEEE 802.16e standard and is expected to be deployed around the world starting next year.

Intel will work manufacturers worldwide to develop and test notebook PCs and mobile devices to work with mobile WiMAX networks. A number of PC and device manufacturers have already expressed intent to embed these solutions into systems next year and more are expected in the next several months.

“The strategic collaboration with one of Russia’s telecom leaders, Comstar, makes us sure that WiMAX will be successfully developed in Russia,” said Dmitry Konash, regional manager of Intel in Russia/CIS. “As part of the collaboration, both companies will work to expand the coverage and service offerings to other cities beyond Moscow to address the shared goal to develop first a city, then regional, and ultimately a national mobile WiMAX network in Russia.”

About Comstar
The Group of Companies Comstar – United Telesystems (JSC Comstar-UTS, LSE: CMST) is a leading provider of integrated telecommunication solutions in Russia. It incorporates: JSC Moscow City Telephone Network, a premier fixed telecom operator in metropolitan area, and Comstar Direct, the biggest broadband Internet provider. The Group’s controlling stake belongs to AFK Sistema (short for Joint Stock Financial Corporation Sistema). Since February 2006, 35% of JSC Comstar-UTS’ shares have been listed on RTS, MSE and LSE.

Based on a proprietary NGN backbone, JSC Comstar-UTS provides panoply of the latest telecom solutions spanning all the market segments: from individuals to multinational corporations. Powerful technical and professional resources enable JSC Comstar-UTS to meet any demand through a set of services fine-tuned to a customer profile.

Regional branches of JSC Comstar-UTS are present in major Russia’s areas: Saint-Petersburg city and Leningrad region, Ivanov, ?aluga, Samara, Saratov and Tyumen regions, Krasnodar and Stavropol territories. Beyond Russia JSC, Comstar-UTS has assets in Ukraine, Armenia and Greece.

About Intel
Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com.