Eesti Telekom                 NEWS RELEASE                      10/03/2002



THE PRECEPT OF THE COMPETITION BOARD



On  October  2,  2002, the Supreme Court of  Estonia  issued

permission  to process the cassation suit of the Competition

Board  to  repeal the judgment passed in favor of  AS  Eesti

Telefon.



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. The Competition Board appealed to  a

higher  court  in  respect of the  judgment  passed  by  the

Tallinn  Administrative Court but the Circuit Court remained

the  decision effective. The Competition Board appealed  the

judgment  passed by the Circuit Court to the Supreme  Court,

which issued permission to process the case.



AS Eesti Telefon is a 100% subsidiary of AS Eesti Telekom.





Hille Võrk

Financial manager

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