History

Vesso Link was founded in 1992 and in September 1993 became the first company to offer text pagers on the Russian market. By the end of 1994 there were 20 000 Vesso Link subscribers. By the end of 1995 25 000 subscribers, 1997 we have finished with 36 000 subscribers in Moscow only an 8 000 in other 18 cities.

Vesso Link today is than undisputed leader in the Russian market for paging systems and one of the largest paging companies in Eastern Europe. Now Vesso Link serves about 40 000 subscribers in Moscow and Moscow Region. The Vesso Link base transmission stations were set up in the Ostankino Television Tower (360 m), which ensured high quality and durable communications over a radius of at least 100 km, thus covering the whole of Moscow and much of Moscow Region.

Since 1997 the company has begun to expand the system covering area up to 130km. There have been already installed additional retransmission stations.

Vesso Link is one of the largest Motorola distributors. In February 1997 Vesso Link was recognized as a TOPERATOR OF EAST AND CENTPAL EUROPE. Motorola formally acknowledges this status for outstanding contribution towards the development of the paging industry in Europe.

Besides Motorola Vesso Link utilizes the equipment of the leading international telecommunication companies such as AT&T, Lucent Technology, Nortel.

In May 1997 Vesso Link made an agreement with CRYPT - the largest paging company of United Paging System Alliance. The aim of the agreement is to create a unified Russian paging network. Vesso Link-United Paging System nationwide information and paging network will be built based on the companys' regional paging network.

Vesso Link-United Paging System has now integrated its operations with 36 regional paging companies in 76 cities and serves about 90 000 subscribers to form the largest paging service by so far in Russia. Vesso Link and United Paging System supplement each other: Vesso Link is the leader on Moscow paging market and United Paging System has developed regional area network.

In the near future this regional paging network will provide Vesso Link United Paging System subscribers automatic roaming (regional coverage) using satellites. Technologically it can provide expanding of new communication products and services all over the region.

Vesso Link customers base

Vesso Link serves a diverse range of customers at the Russian authorities and government bodies, corporations and, of course, a large number of private customers and small business community.

Vesso Link is particularly popular among banking institutions. Today Russian banks form one of the company's largest group of clients and their interest in this area of mobile communications is constantly growing. (The companys clients are over 250 Russian banks such us Savings Bank, Mezhkombank, Menatep, National Reserve Bank and Central Bank of RF).

The company provides paging services to foreign diplomatic corps (American Embassy and Canadian Embassy are Vesso Link customers) and representatives of leading information agencies and media (ORT-TV, Itar-TASS, TV6TRK, Nezavisimaya Gazeta, Izvestia-expertise, etc.) About 2000 people from media community are Vesso Link customers.

Vesso Link pagers are widely used in state organizations, particularly the power ministers (such us Moscow Municipal and Regional Police, Tax Police RF Department, RF Ministry for Emergency Situations, RF Ministry of Foreign Affairs, etc.).

	State Organizations - 12%
	Companies - 40%
	Banks and financial organizations -15%
	Private customers - 33%

Vesso Link services

The company pays attention to the needs of every individual client and makes the necessary alterations to the systems configuration to meet the clients demands. Vesso Link paging system allows organization to provide their departments with the best system of distributing circular messages available today (group paging). Circular distribution is one of the trump cards of the Vesso Link paging system.

The other Vesso Link services:

	Mail Page - electronic mail forwarded directly from the service provider to the pager.
	Spectrum Access - the telephone number calling you person is forwarded from the Phone Master to the pager.
	Tone Transmission - messages transmission via a tone telephone.
	Information Channel - the latest financial and economical news, political headlines and other up-to-date information on client's pagers.
	Keeping of messages - all messages sent during the last 24 hours are kept.
	Roaming with 76 cities in Russia and CIS
	Beta Mate - specialized software, which allows transmitting, messages from client's personal computer.
	Service 500 - clients can use pagers as pocket inquiry office.
	Word Sender personal paging station provision.
	After Sales Support
	Substitution of pagers
	Numeration of messages
	Translation of messages by operators
	Messages transmission in definite time
	Rent of pagers
	Page User and Spectrum Access - alarm system
	Pin Code - numeric code given to each pager for remote handling and obtaing services.

The company development

Today Vesso Link-United Paging System controls 21-23% of the paging market in the Moscow Metropolitan Area and close to 35% (Vesso Link about 20%) of the total market in the Russian Federation together with UPS Alliance.

The Vesso Link speed annual growth rate (1996/95) is 60%.

The terms of payment for a pager and services

	Subscription: per month
	Beta Mate:
	Service 500: per month
	Group pager: per year
	Roaming:
	Word Sender:
	Method and condition of payment: no credit, monthly billings and advanced up to 1 year.
	Guarantees: not required. The pager is disabled in case of not being payed for.

Distribution

Direct Sales.

The company operates a well-developed network of dealers and stores. Today there are above 100 points of sale in Vesso Link-United Paging System network of Moscow stores and shops. This large number of dealers and stores provides efficient market penetration with new products and initiatives.

Technology

Vesso Link-United Paging System utilizes the full range of equipment offered by leading international telecommunication companies such as Motorola, AT&T, Nortel.

The whole range of operations is completely computerized: from encoding the pagers (cap codes) to administration, from accounting and billing to data processing and telecommunication.

To optimize the use of the existing and future customer base and to remove the deficiencies, which inevitably characterizes a massive operation, running against capacity limitation a new operator is needed for every 200 new subscribers.

Accounting system

Vesso Link-United Paging System accounting system is operated according to World Bank standards and according to all relevant laws and regulations in Russia, (which conform to European Union standards). The whole accounting operations are completely computerized. All the document modules are linked to each other and feed each other.

As a result of the merger of the company has adopted the concept of the Central accounting department, which keeps accounting records for several entities within the Association.

The accounting system is based on the INOTEC Accounting Software. INOTEC is a Russian company, which positions its products as a bookkeeping system with two parallel sets of accounts in two principal currencies. INOTEC meets all of the company's needs for keeping Russian books.

There are 12 people in the accounting department.

In July 1997 the company contracted the leading Russian banking software company to build a modern billing system which is the first stage of the project to create an integrated computerized corporate system.

External audit

Coppers & Lybrand audits annual financial statement of the company in accordance with the GAAP. An audit is performed once a year in March-April for the previous year.

Employment

Today there are about 340 people work in at the company. Workers are selected to work in Vesso Link-United Paging System through series of rigorous and stringent worker aptitude tests. The company regards its first and most basic task now to educate and train workers to perform their work and to help them specialize in operating and servicing the hardware and the software involved in the paging process. Most of them are sent to study in Motorola courses and seminars. Concurrently all are trained to be customer friendly and client oriented. The interface and interaction with the company's subscribers constitute an integral part of standard training program. During workers period of training they get all the needed guidance internally and most are sent to study in seminars, manufacturers' courses, other frameworks.

Vesso Link United Paging System projects

The company intends to expand new technological products and first of all a high speed and high capacity paging protocol FLEX, which has become the world standard de facto. It forms a platform for advanced messaging including two-way and voice paging.

As to new models of pagers since December 1997 Vesso Link-United Paging System in common with Motorola are going to offer its clients new four-lines pagers INFOADVISOR-4440 and SCRIPTOR LX-4.