In 2001 the regional telecom entered 21,000 new lines into service.  There was a waiting list of 150,000, of which 100,000 were in Krasnoyar.  The Company plans to install 30,000 telephones in 2002.  

Financial investments are necessary to meet the huge demands for telephones.  Raising the rates for phone installation therefore comes as timely support to telecoms from the Russian government.  

The RF Anti-Monopoly Ministry has thus approved new installation rates for OJSC Elektrosvyaz, Krasnoyar region.  As of March 1, 2002 rates will go up to Rub 6,000 (including VAT) (instead of Rub 3,000), and the rate for business organizations will be Rub 7,500 (not including VAT) (instead of Rub 6,000). 

The average cost of installing one telephone line in a Krasnoyar apartment is Rub 15,000 - 20,000.  Thus the current tariffs cover only a small part of these expenses.  This obviously poses a hindrance to the installation process.  Investments in the development of telephone networks are not effective.  And OJSC is virtually the only company which performs standard hook-up service.   

Tariff hikes are therefore not only a burden for new customers, but also hinder installation for thousands of people who remain on the waiting list in Krasnoyar and the surrounding region.