EESTI TELEKOM

ANNOUNCEMENT



INTENTION TO NOMINATE AS EMT AS A COMPANY WITH SMP



Letters indicating the intention of nominating EMT Ltd. a

company with significant market power



On  September  14th, Estonian National Communications  Board

presented  letters to EMT Ltd., in which, according to the §

8,  section  4  of the Estonian Telecommunication  Law,  the

Estonian   National  Communications  Board   announces   its

intention   to   pronounce  EMT  Ltd.  to  a  company   with

significant market power for the year 2002, in the  national

area  of  the  general interconnection  and  general  mobile

services market.



A  basis  for  the nomination as a company with  significant

market  power is point 2 of section 1 of § 8 of the  already

mentioned  Estonian Telecommunication Law , and  sections  8

and  9  of  §  6  of  the regulation No.  116  “  Rules  for

evaluation  of  competition terms and determination  of  the

markets  of telecommunication services for nomination  of  a

company  with significant market power”  by the Minister  of

Transport and Communications, dated December 19, 2000.



According  to the Estonian Telecommunication Law,  EMT  Ltd.

has  time  to present a written opinion about its nomination

as a company with significant market power by November 19th,

2001.  EMT  Ltd. finds that its activities do not jeopardise

free  competition and rapid development of mobile market  in

Estonia,  and  relying  on that, is inclined  to  argue  its

nomination as a company with significant market power.



The  Estonian National Communications Board has  to  make  a

decision regarding the company with significant market power

by  December  1st,  2001  at the  latest.  If  the  Estonian

National Communications Board still decides to nominate  EMT

Ltd.  as  a company with significant market power,  it  will

have a negative impact on the total financial results of the

whole  group, according to Estonian Telecom Ltd.  The  total

extent  of that impact depends on the results of negotiation

between  the Estonian National Communications Board and  EMT

Ltd., which is difficult to predict at the moment. The first

rough  estimates indicate that the  negative effect  on  net

profit of 2002 could be between 100-250 million kroons.





Kadri Lensment

Management Assistant

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