International and Domestic Long-distance Telephony stands at 54.3% of total revenue. Further development of long-distance telephony remains one of the most important trend of the Company's investment activity.

2003 investment plan provides for further extension of the capacity of Automatic Long-distance telephone exchanges and modernization of the existing ones. About RUR 120 mln will be allocated to these purposes in 2003. Capacity of new digital Automatic long-distance telephone exchange in Volgograd will reach 16 740 ports. Combined telephone exchange with total installed capacity of 1100 ports and 3538 lines will be put into service in Elista, the capital of Kalmykia Republic.

At present time 15 Automatic long-distance telephone exchanges with total installed capacity of 108100 ports operate in 12 cities of the Southern Federal District. Total installed capacity of digital Automatic long-distance telephone exchanges stood at 93 292 ports as of January 1, 2003. In 2003 "UTK" PJSC plans to put 4 analog Automatic long-distance telephone exchanges having installed capacity of 14 808 ports out of service that will make it possible to improve the quality of domestic and international long-distance telephony and to reduce maintenance costs. At the beginning of the year equipped capacity of Automatic long-distance telephone exchanges constituted 72.53% including 79.3% - in zonal networks.