The total value of this agreement is expected to reach 3 billion yen. For the first phase of the project, NEC will supply 1 HUB (center) base station, installed in Moscow, and 45 VSAT systems. NEC will start shipments from March 1997.

NEC's VSAT is a high-performance satellite communications product which provides users with the flexibility to match optimum networking solutions to specific satellite digital communication needs. It can offer a wide range of capabilities in interactive data, high-speed data, voice and fax communications.

RSCC holds Russian satellite "Express" and more than 10 other communications satellites. By employing NEC's VSAT system, RSCC will provide telecommunication services for private companies' own networks covering all of Russia. Possible customers to use such services are banks, airlines, power supply companies and other large corporations.

Russia is currently seeking to improve and digitalize its older telecommunications infrastructures of the past and at the same time employ the most advanced telecommunications technologies. A satellite communications network is the easiest and most efficient method for RSCC to realize a nation-wide network and provide its services across such a vast country. Because of their ability to easily cover great territory, VSAT networks are drawing great attention in Russia.

NEC has been involved in the telecommunications business with the Soviet Union and Russia since the 1970's, contributing to the development of the country's telecommunications system. NEC is one of the top suppliers of telecommunication systems in Russia holding a 60% share in the trunk line of digital microwave systems market and a 45% share in optical transmission systems. Up until September 1996, its accumulative orders from the country amounted to more than 50 billion yen.

NEC has also supplied its most advanced SDH microwave system for one of the country's largest projects, connecting the 7,565 km stretch from Moscow to Khabarovsk (*NEC was responsible for the 4,245 kms between Khabarovsk and Novosibirsk). NEC has also been successful in the public switching systems market in Russia, supplying its system to many of the larger cities in Russia.