A time-based charge system was introduced in 1998 for a part of the company's franchise. So far the effect of the introduction has been mixed, but positive effects should be clearer this year. Reacting to the ruble crisis Nizhnovsvyazinform has already raised tariffs twice since August 1998. Tariff increases will not match inflation in the near future, but combined with tariff rebalancing, wider introduction of time-based charging, and investment cuts, the medicine should be strong enough to put Nizhnovsvyazinform back on the right road soon. Information sources are deemed reliable by RMG Securities, however RMG Securities abstains from any liabilities determined from the information herewith.
Analysis is based on dated market information and is subject to change.