Presently the communications sector in Kalmykia is one of the most prospective and rapidly progressing basic infrastructure sectors bearing the potential of the long-term economic growth.

The role of communications in the country's social and economic standing is defined by the inevitable industrial-to-information transformation of society.

Open Joint Stock Company "Elektrosvyaz" was established in the Republic of Kalmykia in June 1994 as the result of privatization of the State Communications and Informatics Enterprise "Rossvyazinform".

"Elektrosvyaz" Republic of Kalmykia is the main operator of local and zonal telephone communications in the Republic of Kalmykia.

The Joint Stock Company "Elekrtrosvyaz" of the Republic of Kalmykia comprises 15 affiliates, including the Long-Distance Telephone and Telegraph Station, Elista Urban Telephone Station and 13 communication stations in the regions of the republic.

The company employs 1300 men most of which with having university degrees and long professional experience.

The total amount of communications services provided by all the communications organizations of the republic in 2001 came to 100 861 thousand rubles. Compared to 2000 their amount grew by 22 656 thousand rubles (29,0%). The share of the communications in the total amount of all the paid services has grown from 4.1% in 1999 to 11.7% in 2001.

Communications sector incorporates two principal compounds, electrical and postal. They, in their turn, may be subdivided into independent sub-sectors.

At the present moment there are 11 communications licenses issued by the State Communications Administration of Russian Federation in the territory of Kalmykia, including 8 in the field of electric communications (including radio communications), 2 in the field of television and radio broadcasting. And there is one license issued for postal services.

Mail is the most socially valuable form of communications as the other forms have lesser availability for a considerable part of the republic's population because of weak development of networks and means as well as high costs.

On January 1, 2002, there were 331 mail delivery departments including 72.8% in the rural areas.

Mail still dominates among the press distributing services.

The dynamic introduction of high-tech, requirements to meet the growing demand of the population and the economy in whole call forth the new services of the electric communications. Grows the demand for document-based electric communications and the World Wide Web. Thus the enterprises and organizations of the communications sector in 2001 provided the total amount of internet services 2.9 times higher than a year before. Also grows the sector of cellular and paging communications.

By January 1, 2002, there were 127 common telephone stations (including 7 in cities and 120 in rural areas). Telephone stations are fully automatic. The length if the long-distance telephone channels amounts at 3.4 thousand kilometers.

The common use network of the republic connects 54,6 telephones (including local telephone booths),44.6 thousand phones belong to the population.

In provision of permanent urban population with phone services Kalmykia (64.3 per 100 households of permanent population) holds the first place in the Southern Federal District in 1999, whereas this figure in the neighboring regions was as follows: Republic of Adygeya - 46.4%, Republic of Dagestan - 34.7, Stavropol Territory - 60.9, Astrakhan Oblast - 48.4, Volgograd Oblast - 47.9.

Distribution of the telephone coverage in the republic is uneven. Thus in 2000 it made 52.2 phones per 100 households of permanent population, including 66.5 in urban areas and 41.3 the rural areas.

In 2001 there were 249 toll phones of all the types in the republic, including 237 in urban areas and 12 in rural areas.

In the main activity income structure of communications enterprises in 2001 the larger share belonged to long distance and international calls, mail, city and rural telephone communications. During 2001 the income amount form mail increased by 27.1% and made 21.5 thousand rubles. Long distance and international calls income increased in 2.1 times compare to 2000.

Television and radio broadcasting are the main directions of serving the population in the field of communications.

In 2000 36.8% of the republic's population received 4 TV channels. Radio is accessible to 100% of the whole population.

In the conditions of introduction and development of new services, such as integrated services digital networks (ISDN) and intellectual services, it is necessary to put emphasis on the creation of up-to-date material and technical basis and formation of the services market and competition of enterprises providing such services.

In the neatest period of time the main communications enterprises will focus on the broadening of data transmission services, electronic mail, attraction of internet subscribers. In July 1994 Open Joint Stock Company "InfoTeCS" (Information Technologies and Communication Systems) opened a branch in Elista, the capital of the Republic of Kalmykia. The main activity of the branch is providing the services of digital long distance and international telephony of Global One network, Internet access services, facsimile and trunk radio telephone communication. The high professional level of the personnel and holding of the corresponding authorizations, licenses of the Ministry of Communications and Ministry of Construction, enable effective servicing of large offices and banks, including planning, delivery and installation of various communication systems, local area networks, security and air conditioning systems. At the same time individual customers is another concern: installation of small security and access control systems in apartments and houses, meeting the growing population's requirement to the security of the household. Due to the flexible pricing policy, high level of service and quality of the provided services, the branch holds the leading positions in the republic's market of radio telephone services. In order to increase the amounts and quality of the services the company concentrates on the development of non-traditional in the Russian regions communication services including: integration of telephone, data transmission and multimedia services on the basis of digital technologies; broadening of the internet access services to the widest possible audience; use of the universal network solutions for the corporate sector and commerce. During its operation in Kalmykia the branch has acquired a reputation of a professional and reliable partner. This has allowed the branch to become an authorized organization of the republic's government in the commission for civil defense and extraordinary situations. The projects of the company in the further modernization of the existing radio telephone network and construction of paging system for personal radio calls received support in the government of the republic and the implementation work is carried out at the moment.