EESTI TELEKOM

ANNOUNCEMENT



CONTESTATION OF JUDGMENT PASSED IN FAVOUR OF EESTI TELEFON



The  Competition Board appealed to a higher court in  respect  of

the judgment passed by the Tallinn Administrative Court on 17  of

January  2002, by which the precept of the Competition Board  was

cancelled upon the petition of AS Eesti Telefon, subsidiary of AS

Eesti Telekom.



On  24 April 2001, the Competition Board  issued a precept, based

on the Competition Act, prohibiting Eesti Telefon to implement  a

per-minute  price of 34 sents at peak time, 28 sents at  off-peak

time and at 14 sents at night for voice calls in its network. The

Competition  Board  obliged Eesti Telefon to  implement  a  price

lower  than  the tariffs established since April 2001.   Pursuant

to  the Competition Act, a fine in the amount of up to 5% of  the

net  sales for the year preceding the decision to impose  a  fine

can be imposed for the abuse of a dominant position.



Eesti  Telefon is of the opinion that the basic price between  14

and  34  sents  for  calls  within  the  network  is  cost-based.

Therefore,  Eesti  Telefon disagreed  with  the  precept  of  the

Competition  Board  and  contested the  precept  at  the  Tallinn

Administrative  Court on 23 May 2001. The Tallinn  Administrative

Court satisfied the complaint of Eesti Telefon and cancelled  the

precept of the Competition Board of  17 of January 2002.





Kadri Lensment

Management assistant

6311 212