EESTI TELEKOM

ANNOUNCEMENT



NEW RATES OF FIXED TELEPHONE COMMUNICATION



AS Eesti Telefon, subsidiary of AS Eesti Telekom, is planning to introduce 

a number of changes in the company's rates from 1 October. This will be price 

re-balancing, i.e. achieving the adequate price and cost ratio, which is 

a pre-requisite for the actual opening of the telephone communication market 

from 1 January 2001. 



Depending on the consumer behaviour, the change of rates will make a minimum 

impact on the economic results of the company, affecting the turnover by less 

than 1% as estimated by AS Eesti Telefon.



The changes are the following:



1.	Digital telephone subscription fee for corporate customers will be 

        reduced by 17%, from EEK 3,600 to EEK 3,000.

2.	Digital telephone monthly fee for corporate customers will be reduced 

        by 39%, from EEK 198 to EEK 120.

3.	Rate per minute of local calls at peak hours will be increased by 50%, 

        from EEK 0.16 to EEK 0.24.

4.	Rate per minute of long-distance calls will be reduced by 36%, from 

        EEK 1.06 to EEK 0.68.

5.	Rate per minute of local calls at off-peak hours will be increased 

        by 125%, from EEK 0.08 to EEK 0.18.

6.	Rate per minute of long-distance calls will be reduced at off-peak 

        hours by 4%, from EEK 0.53 to EEK 0.51.

7.	The night rate absent until today will be established for a minute 

        of local calls - EEK 0.08.

8.	Minute rate of international calls will be reduced depending on 

        the country up to 25%.

9.	General off-peak hours will be cancelled in respect of international 

        calls, but at the same time benefits up to 25% when calling abroad 

        will be introduced in the market.

10.	It is planned to introduce reduced rates per minute in the market 

        for users of the Internet dial-up service. 

11.	From 1 October, the call setup charge will be applied from 

        the 1st second after the connection has been established.





Raul Kalev

PR-manager

+372 6460 220