The Company new development strategy has allowed increasing twice growth dynamics and move Gars Telecom capitalization closer to 40 MUSD. The Company plans up to 2010 place 20 per cent of the capital telecom market for corporate clients and 15 per cent in Saint-Petersburg as well.

Gars Telecom consolidated revenues in 2007 was 411901 thousand rubles that 60,7% more than for the previous year (249941 thousand rubles).

Services ratio in revenues structure has not changed seriously. Revenues from data transmission and internet access services have increased in 2007 up to 6% that is 38% of the consolidated Gars Telecom revenues or 156522 thousand rubles (80731 thousand rubles in 2006). The Company revenues from the traditional telephony services rendering decreased low from 27% in 2006 (67484 thousand rubles) to 23,7% or 97621 thousand rubles by the 2007 year results.

Smart capacious services have become 38,3% of the Gars Telecom revenues in 2007 year: telecom-outsourcing, consulting and also integration projects. Comparing with the last year, services group share decreases on 3%. However, in money terms this group takes stable position: 57050 thousand rubles (30,9%) in 2005, 101726 thousand rubles (40,7%) in 2006 and 157758 thousand rubles (38,3%) by the 2007 year results. Stable development of this activity segment allowed Gars Telecom become number 1 in the telecommunication and data transmission services outsourcing sphere (by the expert jury of the First National Awards “Business Atlantes” in the outsourcing and business support field), and also prove position in TOP-20 among the largest Russian IT consultants results released by CNews Analitycs within the bounds of the “IT —services market: consulting, integration, outsourcing 2007”.

“IN 2007 the Company made the first step within the bounds of a new ‘Maximum overdrive’ program has been launched in the beginning of the last year, — tells Pavel Gorenkov, Gars Telecom CEO. — if earlier the Company grew at average 30-35% per year, then nowadays Gars Telecom business increase is 60%, and capitalization get so close to 40MUSD”.

Work over the business-process optimization and restructuring had taken priority of the educts as follows:
• strategic block has been renewed — the Company is positioning as premium class carrier, with the high service level and high margin products;
• within the bounds of the program “The new quality standards” the Company restructuring was carried out. The program is aimed to increase the level of the clients’ service. Nowadays Service Department by the reaction speed on the clients’ requests definitely leads among the capital telecom-carriers;
• 300+ km of the fiber-glass network has been built in Moscow for the report period;
North-West representative office has been opened;
• services range has been renewed and several products has been launched oriented on corporate market and development companies segment: wireless videomonitoring “Dozor”, videotelephony, innovation wireless broadband secured internet access "3G office;
• billing abilities has been increased widely.

For the reporting period the Company has increased serving area up to 1’553’000 square meters. Gars Telecom renders services in 78 business centers in the both capitals. Among new clients in 2007 were famous international brands such as SNEF, DHL, Libra Hospitality, REHAU, Lindner AG, D’aucy, “Energomash”, Alliance Continental, Detsky mir, Peresvet group, “Renessans insurance”, “EMS Garsnpost” and others.

“Gars Telecom aim is to place up to 20% of the telecommunication market for corporate clients in Moscow and up to 15% in Saint-Petersburg by 2010, — tells Ruslan Aliev, Gars Telecom development director. — To achieve such results we are planning 15 MUSD investments in business development during 2008”.

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Gars Telecom profile: telecommunication management, integration projects realization and telecommunication services rendering. Company is oriented to cooperate with big-sized corporate clients and telecom-carriers. Along with tradition telecom-services company renders services in telecom-consulting, outsourcing of the communication services and telecom-infrastructure, and also telecom-budget management.

Company exclusively realizes in Russia specialized telecom-solutions for commercial real estate market that fit international BLEC standard (Building Local Exchange Carrier), and develop telecom-consulting practice in Russian development market. In February, 2007 the total amount of the serviced area overpassed 1 500 000 squire meters.

Since 2003 Gars Telecom has become the only Russian Virtual Mobile Network Operator for corporate sector. The host provider is Megafon.

Among key corporate customers are TNK-BP, RussNeft, Alliance Oil Company, Ehrmann, JVC, GoodYear, Ideal Standard, Kalinka-Stockmann, MosFilm, TeliaSonera, Interros, IG “Eurasia”, FIAT, Schneider Electric, Eksmo and over 78 business centers.