SCM GROUP PUBLIC REPORT 2011

Vega Telecommunications Group (Vega) is one of Ukraine’s
largest private fixed-line, broadband access, and data transfer
operators.
Vega possesses a full range of licenses to provide fixed-line
services across Ukraine. Services include local, inter-city, and
international telephone connection, broadband connection,
as well as transmission channel rental.
Vega provides services in 47 cities and 2 population centers,
in 20 Oblasts of Ukraine, with a full range of services (fixed-
Telecommunications.
Vega
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SCM GROUP PUBLIC REPORT
CREATING SUSTAINABLE VALUE
line telephone connection, broadband internet access, and
data transfer) available in 38 population centers of Ukraine.
Vega has also developed its own powerful country-wide
baseline network.
Operational management of Vega is undertaken by Farlep-
Invest.
The total number of employees – 2,254 people.
Vega Telecommunication Group's financial indicators
Vega Telecommunication Group's 2011 2010 Dynamics, %
Assets 111 94 +18.08
Sales volume 89 93 –4.49
Net profit (loss) (4) (7) –42.86
EBITDA 14 20.8 –32.69
Investments
The total volume of investment in Vega's network construction
and upgrade amounted to $6.7m.
Vega completed its radio relay network upgrade project in 6
Oblasts of Ukraine. As a result, the data transferring capacity
of the network increased (from 34 to 100 mb/second)
and coverage expanded to include Kharkov, Cherkassy, Volyn,
Khmelnytsky, Zhitomir, and Chernigov Oblasts. The new
and the upgraded parts of the network allow to decrease
the maintenance costs and to prepare the network to satisfy
the constantly growing demand for services.
Focus points of the year
During the reporting, year, Vega's services included: 26,555
fixed connection lines, of which 9,684 to individua clients
and 16,871 – to corporate clients. The resulting number
of the subscriptions amounted to 616,813 (388,285 – individual
clients, 228,528 – corporate clients).
The number of new subscriptions to the internet service was
39,126, of those 31,527 – by individual clients, 7,599 – by
corporate clients. The resulting overall number of the subscriptions
amounted to 143,565 (116,115 – individual clients,
27,450 – corporate clients).
The growth in broadband internet subscriptions in 2011 was
12.8% year-on-year.
Vega launched its broadband internet access services
in Khartsyzsk and Kramatorsk (Donetsk Oblast). IPTV service
was launched in test mode in Donetsk, Mariupol, Makeyevka,
and Odessa.
Vega launched corporate IP telephony-based corporate solutions
for medium and small business.
Vega launched fixed line connection services in Brovary (Kiev
Oblast).
SCM Group's business