According to preliminary data OJSC Sakhalinsvyaz generated Rub 638.1 mn in 2001, which is a 22% increase compared to the previous reporting year. Core activities accounted for Rub 624.6 mn, up 21.9%.  The largest increment was the 28% rise in residential telecom services, for a total of Rub 336.4 mn.  The main reason behind this was the state tariff policy reform, which aims to enable operators to break even.  

Balance-sheet profit was down 16.1% compared to the previous year and stood at Rub 34.5 mn.  Net profit was up and reached Rub 15.9 mn.  

The total amount of capital investments in 2001 was Rub 51.6 bn, which mainly targeted local telephone exchanges.  As a result of the company's development of its local telephone network its customer base rose by 4.4%, from 117,673 to 122,827 as a whole in the region.  In addition, 5,000 new telephone lines were entered into service in Southern Sakhalin, of which 2,500 were free replacements for obsolescent analog lines in Automatic Telephone Exchange (ATE) #3.  ATE expansions were also made in Korsakov, Shakhtersk, Nevelsk, Makarov and the villages of Nogliki and Zonalnoye.  

ATE digitalization in the Sakhalin region has reached 44.7% of the company's overall network, which is 8.2% higher than the previous year.  

The company's outgoing international and long-distance traffic was up 23.6% year on year as a result of work performed to upgrade old and obsolescent equipment and expand telecom access facilities.  Paging services skyrocketed by 172% and the number of subscribers at year-end stood at 2,654.  

Investments aimed at developing new technologies, including Internet and data transmission, were up 100% and reached Rub 5 mn, and allowed Sakhalinsvyaz to carry out nearly all of its planned projects, i.e. organizing asymmetrical Internet access in Uglegorsk, Okha and Nogliki, and to increase access speed in Nevelsk and Holmsk, increase switched access in the regional center, and much more.   

Large amounts were spent on overhauls and current repair jobs in order to  order to ensure stable growth of telecom facilities, and improve work and service conditions for the Company's clients. Branches opened new service centers, the central public telephone exchange was repaired in the regional center, where a new service became available to the public of Sakhalin as of November 1, 2001: a video telephone connection with over 70 Russian cities.  

Sakhalinsvyaz continued to fulfill its social targets in 2001 as well, as the number of special discount customers increased by 1,325 (3.2%) and stood at 42, 480.  The total amount of telecom services provided to the special discount category rose 21.8% year on year and reached Rub 4.4 mn, while only Rub 10.8 mn of the total amount of refunds (Rub 22.4 mn) was recovered. As a result of this, the company's budget receivables from public discount customers rose nearly 75% and stood at Rub 42.8 mn.  

As a result of the actions undertaken in 2001 OJSC cut its receivables from the federal, local and regional budgets from Rub 50.3 mn to Rub 34.3 mn.  

According to Sakhalinsvyaz's 2002 budget, which was approved by the Board of Directors on February 12, revenues reached Rub 714.8 mn, while balance sheet profit stood at Rub 54.8 mn.   

The company's 2002 capital investment plan called for Rub 65.2 mn to upgrade telecom facilities in the Sakhalin region.   

Local telephone networks remain the major source of investment. Sakhalinsvyaz intends to enter over 9,000 numbers into service during 2002 in Yuzhno-Sakhalinsk, Korsakov, Nevelsk, Yuzhno-Kurilsk and the village of Nogliki.