Moscow - June 6, 2011

Rostelecom announced that it has wrapped up a deal with China Telecom to expand the capacity of the Transit Europe-Asia (TEA) system to 200 Gbps.

According to the terms of the deal, the two companies will expand the capacity of TEA to 200 Gbps by the first quarter of 2012. The volume of joint investment for the increased capacity is estimated at $70 million. The project would allow Rostelecom and China Telecom to offer their customers to rent channels with a capacity of 10Gbps.

According to the agreement, after the first phase of the project the two companies plan further modernization of the equipment installed on the main lines which will bring the capacity of the TEA up to 1 Tb/s.

Besides the cooperation with China Telecom, Rostelecom also works with another Chinese peer China Unicom to jointly offer the Transit Europe-Asia capacity solution, and also works closely with its Japanese peer KDDI to offer capacity solution over the Transit Europe-Asia and the Russia-Japan Cable NetworkRJCN).