On July 1, 2002 OJSC Magadansvyazinform merged two of its branches, the Telephone and Telegraph Exchange and the City Telephone Exchange into a single operator, known as The Magadan Telecom Center.  The new branch is located at the following address: Magadan, ul. Proletarskaya, 10.  The merger will make it possible to optimize the provision of telecom services to companies and residents of Magadan, which includes shifting over to a single billing system for all telecom services offered.  Improving the company's marketing activity and new quality control management of telecom services should go a long way towards enhancing the company's competitiveness.   

Reducing the number of branches run by OJSC Magadansvyazinform to nine, and making efforts to divest its non-core assets should allow the company to improve its corporate governance and efficiency ratios (number of lines per employee).  The restructuring is part of the nationwide merger process being conducted by OJSC Svyazinvest in the telecom sector.  Under this program OJSC Magadansvyazinform is to merge with Dalsvyaz by the end of 2002 (previously called OJSC Elektrosvyaz Primorsky krai).  This resolutoin was passed at a shareholders meeting of OJSC Magadansvyazinform held on June 21, 2001.