According to a report from Novecon, the Russian Communications and IT Ministry says a special fund to finance universal telecommunications service in outlying Russian regions will collect about R7 billion annually.

The funds come from the payment of 2% of Russian communications operators' incomes under a new law "On Communications". There are about 46,000 localities in Russia that have no telecommunications at all.

The funds will be used by rural operators – the winners of a special set of tenders to be announced by the ministry. The tenders will likely be held around the middle of 2005 and common user network operators will be invited to participate, the ministry stated.

Intelecon Research & Consultancy Ltd. 19/11/2004