EESTI TELEKOM

ANNOUNCEMENT

12.02.99

 

 

COMMENTARY TO THE 11.02.99 ANNOUNCEMENT OF BNS "BY YEAR 2001, 

THE INTERNATIONAL CALLS WILL BECOME THREE TIMES CHEAPER".

 

The allegation of BNS ”Decrease in the rates of international 

calls may cause a several million EEK decline in the turnover 

of AS Eesti Telefon” is incorrect.

 

Jaan Männik, Chairman of the Management Board of AS Eesti 

Telefon, announced to the press that from the year 2001, the 

income of AS Eesti Telefon from the international long-distance 

calls may decrease by several hundred million kroons.

 

This does not necessarily mean a decline in the company’s 

turnover, since according to the current estimates:

 

1. number of Eesti Telefon clients will increase

 

2. new products/services will be introduced to the market

 

3. the inter-service cross-subsidizing will be ceased (at this 

time, the expenses of local calls and private clients are 

covered on the account of the revenues from international 

calls). After the rates are re-balanced, every user of a 

service will pay only the actual expenses (monthly fees for 

local calls and private clients will increase).

 

4. mobile phone network will expand, due to which also the 

traffic between mobile phone and fixed line telephone networks 

will increase.

 

 

 

Tarmo Amer

Member of the Management Board

AS Eesti Telekom