Rostelecom determines its main optimisation initiatives to 2019

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Moscow, Russia – October 19, 2016 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that its Board of Directors has set out its key initiatives that will be undertaken between now and 2019 as Rostelecom seeks to implement its current strategic priorities.

The most important of these initiatives is the development and implementation of Rostelecomís Production System. The ultimate goal of the System is to improve business efficiency and profitability of the business without needing to commit additional resources. The key objectives are to increase productivity by 20 - 30% depending on the business function, whilst reducing operating costs by 5 - 10%.

Rostelecom is building its own production system, based on Lean Management and Six Sigma practices. Each region can choose from a wide range of tools provided to them to help solve their most pressing problems.

The pilot project, launched in the macro-regional Siberia branch has already shown the first results Ė demonstrating a 12-fold decrease in the number of avoidable departures by technical support employees and increased customer retention as a result of monitoring network quality and organisation of predictive calls.

The Company has created a separate work stream responsible for customer service, one of the Companyís key initiatives. Their goal is to increase user satisfaction and reduce churn by 20-30% for Rostelecomís basic services - broadband and pay-TV, as well as to increase their net promoter score (NPS).

Another initiative will see the introduction of service development offices, with the ambition of increasing flexibility and improving time to market of the Company's products and services.”