Tyumentelecom (TUTE) (merged with Uralsvyazinform)

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Tyumentelecom is the local telecommunications service provider for the Tyumen Oblast in Western Siberia Region. The population of the Tyumen region is 1.35 million. The company provides local telephone service as well as national and international service. Tyumentelecom also provides long distance services for the Yamalo-Nenets district in Northern Tyumen. The company was privatized in 1993, after the formation of Svyazinvest, the national holding company. Svyazinform held 38% of the common shares and 51% of the voting shares by 1998. Foreign investors held 18.4% of the common shares, domestic investors held 10.2%, and employees and management held 8.4%. Tyumentelecom had 209,000 access lines and revenues of US$64 million in 1996. Tyumentelecom holds a virtual monopoly in the southern Tyumen region. However, there are two other telecommunication companies operating in the overall Tymen region: Yamalelectrosvyaz and Hanty Maniysk Telecom. Tyumentelecom's major sources of financing are supplier's credits from international equipment suppliers, profits, and funding from regional government. Tyumentelephone also uses "telephone bonds" which entitle the investor to priority installation of a new phone. The company invested US$6 million in 1995, US$14 million in 1996, and US$19 million in 1997. Became a branch of JSC Uralsvyazinform in November 2002.