The agreement was signed on March 26, 2004 by the FETEC (Dalsvyaz) Director General Igor Zabolotny and the Chairman of the PJSC Summit Kriljon-Service Telecom (SK-S telecom) Koji Komatsu for construction optical fiber communication line on Sakhalin Island.

Construction under the agreement will last from 2004 to 2005. The line length will be over 900 km.

SEIC (Sakhalin Energy Investment Company Ltd) will lay the line independently within Sakhalin-2 project telecommunication system. SEIC will use the cable for arrangement of technological communications for the purpose of remote control and monitoring of oil and gas line service.

OJSC FETEC (Dalsvyaz) under the agreement will use the cable for its own telecommunication system. OJSC FETEC (Dalsvyaz) will tap main optical cable of Sakhalin-2 project to settlements and install equipment independently. Communication facilities in settlements will be updated simultaneously with construction of optical communication line from 2004 to 2005.

Intrazone optical fiber line will cover key settlements of Sakhalin region such as Okha, Noglinky, Tymovsky, Smirnykh, Poronaysk, Makarovsk, Dolinsk, Korsakov and will connect them with regional center i.e. Yuzhno-Sakhalinsk. Besides, communication networks of 20 settlements (such as Val, Goryachie Kluchy, Molodezhnoye, Yasnoye, Onor, Roschino, Pobedeno, Buyukli, Leonidovo, Gasello, Vostok, Novoye, Pugachevo, Vzmorye, Sovetskoye, Pokrovka, Sokol, Troitskoye, Korsakov, Prigorodnoye) will be updated.

Optical fiber communication line construction will replace outdated crossbar ATXs by new digital exchanges with service integration. FETEC (Dalsvyaz) will provide population with a complex of modern communication services including Internet access.

Deputy Director General of FETEC (Dalsvyaz) Oleg Mamontov says that existing intrazone communication using analog communication has exhausted physical and moral resource and fails to provide rising population needs in modern telecommunication services. All Sakhalin district centers are equipped with digital ATXs however lack of own digital network restrains high-speed data transmission services development.

Oleg Mamontov mentioned that the project was especially beneficial for Sakhalin region residents as it will significantly improve intrazone communication, create new opportunities in terms of modern digital technologies and data transmission multi-service network. Big companies will connect their offices located in different district centers as corporate network. It will simplify realization of Electronic Russia project in Sakhalin region for many public structures.

Oleg Mamontov said that SEIC significantly contributed to communication infrastructure improvement on the island by providing OJSC FETEC (Dalsvyaz) with company cable.