Nowadays the telecommunication market is highly innovative so the operators shall develop new business ideas practically online to be ahead of the customers’ expectations and to be competitive at the market. The companies are fighting for clients with the help of content and those who can provide the services satisfying the customers’ dreams are the winners.

JSC “Sibirtelecom” provides the whole range of the modern telecommunication services in the Siberian Federal District. The company operates on the territory of 5 115 thous.sq.km (30% of Russia) with population about 20 mln people (14% of population of the Russian Federation). The urbanization level is 70%, and 45% of population lives in cities. The main advantages of “Sibirtelecom” company are the broad range of its activity and the highly developed network infrastructure. Sibirtelecom is the only operator in Siberia that is able to deliver the whole range of telecommunication services to both individuals and business customers.

Mission

The mission of the Interregional Company “Sibirtelecom” is to be the leading telecommunication operator in the Siberian region. The background for our activities is the convergence of the up-to-date innovative technologies and well-advised marketing policy in order to offer a wide range of high quality telecommunication services to all types of users.

Macroeconomic situation contributes to the growth of the telecommunication market at the Siberian Federal District (SFD). The forecasted increase of the actual Growth Regional Product (GRP) of Siberia of 3-6% per year (2006-2007) makes possible to develop the telecommunication market in the Siberian Federal District. It plays in favor to increase the revenue share of telecommunication branch in GRP of the SFD (2,5% at present). Now this rate is lower than the average Russian and world ones because the offer of services does not satisfy the potential demand yet. The experts forecast 20-22% annual average increase in nominal income of telecommunication branch in Siberia within the next three years, and more than 25% increase, if the economical growth in the country and the regions is accelerating.

With 45.2% share of the total market JSC Sibirtelecom is keeping its leading position on the regional telecommunication market. The company has the strongest positions on the market of the traditional fixed local and intra-regional telecommunication (79% and 86% of the market respectively).

The main competitive edge of the Company on the market of fixed communication in the SFD is:

• Large subscribers’ base;
• The most distributed network infrastructure of PSTN with PoP in the majority of SFD towns and rural centers and practically in all municipal districts of large cities.

The Company is one of the leading ISPs (47% of the market) and mobile operators (17% of the market).

Company’s Services

Being the leading telecommunication operator in Siberia JSC “Sibirtelecom” provides the full range of the telecommunication services: traditional telecommunication services, intelligent network services, dial-up Internet access, ADSL2+ and ETTH access, etc. The high quality of all services provided is based on the regular equipment upgrading, skilled personnel activities and client-oriented approach.  Please see related issue for more details.

Strategic Priorities and Targets

Siberian telecommunication market is being developed very fast and its segments of the most cost-effected services (Internet, wireless communication) are highly competitive.

The strategic plans include rapid development of the new directions of activities: provision of broadband communication and broadband Internet access, cable IP-TV, development of intelligent networks and wireless access.

The strategic plans also include the development of the local telecommunication network as the leading direction because the local network is the most significant competitive edge of Interregional Company and the income of this segment takes the second place in the total income structure. Moreover as the provider of social-significant services, JSC “Sibirtelecom” is pretty aware of its responsibilities for their development too.

Strategy

Strategic Target is a convergence of the innovative technologies and mature marketing policy in order to offer a wide range of high quality telecommunication services to all categories of users.

Basing on its economic and technical potential and human resources JSC “Sibirtelecom” determines the following long-term market objectives:

• To held the leading position on the fixed local and long-distance communication markets;
• To hold dominating position on Internet services and data transfer markets;
• To provide for strong presence on the Siberian market of mobile communication and its further development.

Basic objectives:

• To keep at least 80% share of fixed local telecommunication market by means of increase of numbering capacity, service quality improvement using progressive network digitalization, application of NGN technologies to satisfy the demand for voice communication services;
• To increase the income received from the traditional telecommunication services, developing the range of services provided (value-added services, services of the intelligent networks, information services);
• To held its position on the long-distance communication market using competitive tariffs, experience of work with corporate customers and promotion of the long-distance communication services for individuals;
• To gain and keep at least 50% share of data transfer and Internet access market by means of the developed access networks’ infrastructure, usage of interconnected trunk networks of JSC “Sibirtelecom” and wide application of fixed (ADSL, SHDSL) and wireless subscribers’ access;
• To strengthen the positions of the company on mobile communication market developing mobile communication services at branches and subsidiaries.

JSC “Sibirtelecom” pays much attention to the development of the mobile communication as it is estimated that telecommunication market is two thirds increased by the mobile communication market.  In 2006 the volume of mobile telecommunication market will be more than 18 billion rbls. 

Social-Oriented Business

Being the representative of the big business circles, JSC “Sibirtelecom” understands how important is to participate in the socially-oriented processes, to make the adequate share to create wealthy society, to take part in the development of the community and public unity’s processes.

JSC “Sibirtelecom” is well known for its charitable and sponsor activities in the SFD. The Company renders permanent support to kindergartens, orphanages, veterans, artists and art-workers. Also the Company provides assistance to regional sport clubs. Novosibirsk basketball team and Khakass volleyball team are named after “Sibirtelecom”. JSC “Sibirtelecom” takes part in educational processes of its industrial institution of higher education – The Siberian State Telecommunication and Information Technology University.

The company adheres to the position of the conscientious civil and corporate liability, objective needs assessment and support of current important initiatives – all these activities are involved into the social mission of the company aiming at the partner relations with the environment society.