Eesti Telekom                             RELEASE                      29.11.2005



INTENT TO DECLARE AS EMT A SIGNIFICANT MARKET POWER



On November 28, 2005, AS EMT, a 100% subsidiary of AS Eesti Telekom  was  notified

by the Estonian Communications Board of  its  intent  to  declare  the  company  a

significant market power (SMP) in voice call termination.



The designation procedure is provided by  the  Electronic  Communications  Act  in

force from January 1, 2005 as an adaption of the common European Union  regulatory

framework   for   electronic   communications   services   and   networks.     The

Communications Board intends to also declare  the  other  two  Estonian  companies

operating mobile networks, Elisa Mobiilsideteenused AS and Tele2 AS,  as  SMPs  in

the voice call termination market.



To  ensure  market  openness  and  promote  competition  in  the  the   electronic

communications services market, the Communications Board  considers  it  necessary

to impose on SMPs some obligations provided in the Electronic  Communications  Act

such as transparency, non-discrimination, providing  access,  price  controls  and

cost accounting. In 2006-2008, the companies are obligated to  charge  voice  call

termination based on "glide path" and "price cap" methods.   For  example,  as  of

July 1, 2006, Estonian mobile network operators may not charge over 2.05 kroons  a

minute.  For 2008, all operators have to  comply  with  the  goal  price  of  0.93

kroons/minute.



By the law, AS EMT is entitled to  submit  an  objection  to  the  draft  decision

within one month from its receipt.





Kristina Leet

631 1212