No one can deny the    role    of    telecommunications   for  society.
Currently hundreds of millions of people use wireless  communication  means.
Cell phone is no longer a symbol of prestige but a tool, which lets  to  use
working time more effectively.  Considering  that  the  main  service  of  a
mobile connection  operator  is  providing  high  quality  connection,  much
attention in the  telecommunication  market  is  paid  to  the  spectrum  of
services that cell network subscriber may receive.


    Late in the nineteenth century communications facilities were augmented
by a new invention – telephone. In the USA its use slowly expanded,  and  by
1900  the  American  Telephone  and  Telegraph  Company  controlled  855,000
telephones; but elsewhere  the  telephone  made  little  headway  until  the
twentieth century. After 1900,  however,  telephone  installations  extended
much more rapidly in all the wealthier countries. The number  of  telephones
in use in the world grew at almost  100  per  cent  per  decade.  But  long-
distance telephone services gradually developed and began  to  compete  with
telegraphic business. A greater  contribution  to  long-range  communication
came with the development of wireless. Before  the  outbreak  of  the  First
World War  wireless  telegraphy  was  established  as  a  means  of  regular
communication with ships at sea,  and  provided  a  valuable  supplement  to
existing telegraph lines and cables. In the next  few  years  the  telephone
systems of all the chief countries were connected with each other by  radio.
Far more immediate was the influence that  radio  had  through  broadcasting
and by television, which followed it at an  interval  of  about  twenty-five
    Telephones  are  as  much  a  form  of  infrastructure  as   roads   or
electricity, and competition will  make  them  cheaper.  Losses  from  lower
prices will be countered by higher usage,  and  tax  revenues  will  benefit
from the faster economic growth that telephones bring about. Most  important
of all, by cutting out the need to  install  costly  cables   and  microwave
transmitters, the new telephones could be a boon  to  the  remote  and  poor
regions of the earth. Even today, half the  world’s  population  lives  more
than two hours away from a telephone, and that is one reason why  they  find
it hard to break out of their poverty. A  farmer’s  call  for  advice  could
save a whole crop; access to a handset could help  a  small  rural  business
sell its wares.  And  in  rich  places  with  reasonable  telephone  systems
already in place, the effect of new  entrants  –  the  replacement  of  bad,
overpriced services with clever, cheaper ones – is less dramatic  but  still
    Global phones are not going to deliver all these benefits at  once,  or
easily. Indeed, if the market fails to develop, it could prove too small  to
support the costs of launching satellites.  Still,  that  is  a  risk  worth
taking. And these new global telephones  reflect  a  wider  trend.  Lots  of
other  new  communication  services  –  on-line  film  libraries,   personal
computers that can send video-clips and sound-bites as easily  as  they  can
be used for writing  letters,  terrestrial  mobile-telephone  systems  cheap
enough  to  replace  hard-wired  family  sets  –  are  already   technically
possible. What they all need is deregulation. Then any of them  could  bring
about changes just as unexpected  and  just  as  magical  as  anything  that
Alexander Graham Bell’s telephone has already achieved.

                             SATTELITE SIRVICES

    Our world has  become  an  increasingly  complex  place  in  which,  as
individuals, we are very dependent on other people and on organizations.  An
event in some distant part  of  the  globe  can  rapidly  and  significantly
affect the quality of life in our home country.
    This increasing independence, on  both  a  national  and  international
scale, has led  us  to  create  systems  that  can  respond  immediately  to
dangers, enabling appropriate defensive or offensive actions  to  be  taken.
These systems are operating all around us  in  military,  civil,  commercial
and industrial fields.
    A worldwide system of satellites has been created, and it  is  possible
to transmit signals around the globe by bouncing them from on  satellite  to
an earth station and thence to another satellite.
    Originally designed to carry voice traffic,  they  are  able  to  carry
hundreds of thousands of separate  simultaneous  calls.  These  systems  are
being  increasingly  adopted  to  provide   for   business   communications,
including the  transmission  of  traffic  for  voice,  facsimile,  data  and
    It is probable that future  satellite  services  will  enable  a  great
variety  of  information  services  to  transmit  directly  into  the  home,
possibly including personalized electronic mail. The electronic computer  is
at the heart of many such systems, but the  role  of  telecommunications  is
not less  important.  There  will  be  a  further  convergence  between  the
technologies  of  computing  and  telecommunications.  The  change  will  be
dramatic: the database culture, the cashless society, the  office  at  home,
the gigabit-per-second data network.
    We cannot doubt that the economic and social impact of  these  concepts
will be very significant. Already, advanced  systems  of  communication  are
affecting both the layman and the technician . Complex functions  are  being
performed by people using advanced terminals which are  intended  to  be  as
easy to use as the conventional telephone.
    The new global satellite-communications systems will offer three  kinds
of service, which may overlap in many different kinds of receivers:
    Voice. Satellite telephones will be able to make calls from anywhere on
earth to anywhere else. That could make them especially  useful  to  remote,
third-world  villages  (some  of  which  already  use  stationary  satellite
telephones), explorers and  disaster-relief  teams.  Today’s  mobile  phones
depend on earth-bound transmitters,  whose  technical  standards  vary  from
country to country. So business travelers cannot use their mobile phones  on
international trips. Satellite telephones would make that possible.
    Massaging.  Satellite  messagers  have  the  same  global  coverage  as
satellite telephones, but carry text alone, which could be useful for  those
with laptop computers. Equipped with a small  screen  like  today’s  pagers,
satellite messagers will also receive short messages.
    Tracking. Voice and messaging systems will also tell their users  where
they are to within  a  few  hundred  metres.  Combined  with  the  messaging
service, the location service could  help  rescue  teams  to  find  stranded
adventurers, the police  to  find  stolen  cars,  exporters  to  follow  the
progress of cargoes, and haulage companies to check  that  drivers  are  not
detouring to the pub. Satellite  systems  will  provide  better  positioning
information to anyone who has a receiver for their signals.


    The internet, a global computer  network  which  embraces  millions  of
users all over the world, began in the United States in 1969 as  a  military
experiment. It was designed to survive a nuclear war. Information sent  over
the Internet  takes  the  shortest  path  available  from  one  computer  to
another. Because of this, any two computers on the Internet will be able  to
stay in touch with each other as long as there is  a  single  route  between
them. This technology is called packet swithing. Owing to  this  technology,
if some computers on the network are knocked out (by  a  nuclear  explosion,
for example), information will just  rout  around  them.  One  such  packet-
swithing network which has already survived a  war  is  the  Iraqi  computer
network which was not knocked out during the Gulf War.
    Most of the Internet host computers (more than 50%) are in  the  United
States, while the rest  are  located  in  more  than  100  other  countries.
Although the number of host computers  can  be  counted  fairly  accurately,
nobody knows exactly how many people use the Internet,  there  are  millions
worldwide, and their number is growing by thousands each month.
    The most popular Internet service is e-mail. Most of  the  people,  who
have access to the Internet, use the network only for sending and  receiving
e-mail messages. However,  other  popular  services  are  available  on  the
Internet: reading USENET News, using the World-Wide-Web,  telnet,  FTP,  and
    In many developing countries the Internet may provide businessmen  with
a reliable alternative to the expensive  and  unreliable  telecommunications
systems of these countries. Commercial users can  communicate  cheaply  over
the Internet with the rest of the world. When  they  send  e-mail  messages,
they only have to pay for phone calls to their local service providers,  not
for calls across their countries or around the world. But who actually  pays
for sending e-mail messages over the Internet  long  distances,  around  the
world? The answer is  very  simple:  users  pay  their  service  provider  a
monthly or hourly fee. Part of this fee goes toward its costs to connect  to
a larger service provider, and part  of  the  fee  received  by  the  larger
provider goes to cover its cost of running a worldwide network of wires  and
wireless stations.
    But saving money is only the first step. If people see  that  they  can
make  money  from  the  Internet,  commercial  use  of  this  network   will
drastically increase. For example, some western architecture  companies  and
garment centers already transmit their basic designs and refined by  skilled
– but inexpensive – Chinese computer-aided-design specialists.
    However, some problems remain. The most important is security. When you
send an e-mail message  can  travel  through  many  different  networks  and
computers. The data is constantly being directed towards its destination  by
special computers called routers. However, because of this, it  is  possible
to get into any of the computers along the route, intercept and even  change
the data being sent over the Internet. In spite of the fact that  there  are
many good encoding programs available,  nearly  all  the  information  being
sent over the Internet is transmitted without any form   of  encoding,  i.e.
“in the clear”/ But when it becomes necessary to send important  information
over the network, these encoding programs may b useful. Some American  banks
and companies even conduct transactions over the  Internet.  However,  there
are still both commercial and technical problems which will take time to  be


    Role of telecommunications in banking as in other  businesses  nowadays
is extremely important. We can even say that this field is critical  success
factor for the modern bank or banking system.
    There are two different approaches in terms of  ownership  to  building
banking communications in  the  world.  One  approach  that  is  chosen  for
example by banking system of Russia  and  some  other  former  Soviet  Union
countries is building of private  banking  networks  from  the  start.  This
approach has certain benefits, mainly  from  security  prospective.  On  the
other hand building private banking networks requires permanent and  serious
involvement  of   banks   in   financing,   support   and   development   of
telecommunications   systems.   Other   approach   is    building    banking
communications over existing public services in the country.  Some  of  main
benefits of this  approach  are  relatively  low  level  of  investments  in
communications and possibility of sharing achievements in  this  field  with
other businesses. At the same time in the  future  it  will  be  easier  for
central bank to minimize it's involvement is this field then in the case  of
private banking communication systems.
    There are number of most important banking systems  and  services  that
are based on communications.
    Electronic Funds  Transfer  System  -  System  facilitating  electronic
transfer  of  domestic  interbank  and   intrabank   (interbranch)   payment
    International Financial Telecommunications  -  Same  as  EFTS  but  for
international operations.
    National Money  markets  and  auctions  -  System  allowing  electronic
trading of financial instruments and stocks within the banking system.
    Centralized  accounting  and  analysis  of   available   reserves   and
government budget across country
    Centralized electronic processing  of  personal  Credit-and-Debit  card
    The importance of fast and  reliable  electronic  information  exchange
between financial institutions grows with economy of  country  and  requires
deployment of modern technologies in the banking system.


    In the last days of 2000 the government approved "in  principle"  of  a
draft concept for developing  the  market  of  telecommunications  services,
extending till the year 2010. What  are  the  likely  implications  of  that
    Under the approved project further efforts  in  the  telecommunications
market must  be  geared  to  meet  the  growing  demand  for  communications
services. According to the Ministry of  Communications,  54,000  communities
in Russia have not a single telephone. Communications  networks  development
has been and still is the  job  of  traditional  operators.  Bills  paid  by
retail  subscribers  cover  a   mere   77   percent   of   local   telephone
communications costs.
    According to the most conservative estimates, the  development  of  the
national telephone infrastructure will require an investment of $33  billion
over a period of ten years. The number  of  ordinary  telephones  will  grow
from  31.2  million  in  2000  to  47.7  million  in  2010,  and  of  mobile
telephones, from 2.9 million to 22.2 million. The army of Internet users  by
2010 will go up from 2.5 million to 26.1 million.
    For  communications  operators  to  be  effective   control   will   be
established of the fair access of  one  operator  to  the  other  operator's
network. No operator will be allowed to refuse access to its  infrastructure
to another operator. And tariffs for all market participants should  be  the
    Having examined the concept the Ministry of Communication, the Ministry
of Economic Development and Trade and the  Anti-Monopoly  Policies  Ministry
ordered finalizing the document within a two-month deadline and  present  it
in one package with a plan for implementation measures  to  the  Cabinet  of
Ministers. In the meantime, the Russian communications  market  is  booming.
Investments in 2000 exceeded by far  those  witnessed  by  pre-crisis  1997.
National industrial operators are in the growth phase.
    For the past few years  the  telecommunications  divisions  of  several
giants (such as the Ministry of  Railways,  Gazprom  and  others  companies)
have stormed the domestic market, but none has gained full  access  to  this
day. The possibility remains, though, that these  companies  next  year  may
gain the status of a full-fledged operator. However, before they  can  count
on the right to provide communications services in the domestic market,  the
operators of corporate telecommunications networks must settle  their  debts
to the government,  Communications  Minister  Leonid  Reiman  told  Vek.  He
believes that these operators may settle their liabilities  by  transferring
part of their shares to the State Property Ministry.
    The Communications Ministry has conducted negotiations with the Defense
Ministry on using certain frequencies for  civilian  purposes.  Reiman  said
four percent of the radio  frequencies  were  used  by  civil  services,  20
percent, jointly by military and civil services, and the others were  exempt
from  conversion.  The  Communications  Ministry  does   not   dismiss   the
possibility of operators'  financial  participation  in  the  conversion  of
frequency ranges to civilian uses altogether. The issue of licenses  to  use
vacant frequencies through contests may prove a means  to  raise  funds  for
the mobile communication sector. The  government  has  approved  of  issuing
contested licenses for frequency  ranges  above  1800  MHz,  and  for  third
generation cellular systems.
    Of  the   main   methods   the   government   uses   to   control   the
telecommunications market, alongside technological policies  and  perfection
of service  provision  principles,  one  should  point  to  the  control  of
tariffs, minimization of cross subsidies, optimization of tariffs  structure
by consumer and regional sectors, transition as of 2002  to  limit  pricing-
based tariffs, and the introduction of a system of universal  services.  The
effective control and operation of the industry should provide  support  for
domestic   producers   and   safeguard   national   interests   during   the
restructuring of companies, including Svyazinvest.
    Svyazinvest is  in  the  process  of  enlargement  and  reorganization.
Instead of the 89 regional operators it is creating a new structure  uniting
seven to fifteen communications operators. This measure is expected to  make
the company easier to  control  and  increase  its  shareholder  value.  The
General Director of OAO Nizhegorodsvyazinform Vladimir Lyulin  and  Managing
Director of the investment bank Group  Gamma  Timur  Khusainov  in  December
signed a contract on the provision of information  and  consulting  services
within the framework of the unification of  eleven  regional  communications
operators in the Volga river area.
    Nizhegorodsyavinform will be the base company in the Volga area, taking
over ten other regional communications operators  -  OAO  Kirovelektrosvyaz,
OAO Martelkom of the Republic of Mari El,
    OAO Svyazinform of the Republic of Mordovia, OAO  Elektrosvyaz  of  the
Orenburg Region, OAO Svyazinform of the Penza  Region,  OAO  Svyazinform  of
the Samara Region, Saratovelektrosvyaz, Telecommunications Networks  of  the
Udmurt Republic, Elektrosvyaz of the Ulyanovsk Region,  and  Svyazinform  of
the Chuvash Republic. The unification process is due to be completed by  the
beginning of 2003.
    The number of trunk communication lines over the past  two  years  grew
noticeably.  Rostelecom  and   Transtelecom   have   been   discussing   the
possibilities of Asia-Europe traffic. Companies in the West have  turned  an
attentive ear to this news. Some are drawing plans  for  doing  business  in
Russia.  The  main conclusion is that  the  economy's  drift  from  material
production to information technologies  implies   the   growing   role    of
telecommunications  .  Those  companies  which  fail  to  reorganize   their
policies  and  development  priorities  in  time,  will   fail   in   market
competition. A shift of the emphasis from the transmission of voice  to  the
transmission of data is  the  mainstream  trend  in  the  telecommunications
    Market economy development will give Russia convenient and high quality
telecommunications roads. However, only those companies that have opted  for
new development models will make a rapid headway.

                            FUTURE OF DEVELOPMENT

    Future is speed and power. New technologies in electronics continue  to
develop. Computers become more compact, fast and  inexpensive.  The  smaller
chips' size the closer it placed one another and electric signal  goes  much
faster. Technology exert revolutionary influence on society only when it  is
universal.  Real  revolution  in  manufacture,  accumulation,  treatment  of
matter begins when  first  universal  metal-working  machines  appeared  and
telecommunication systems were created. In ancient  machines  energy  source
was combined with machine itself, but in process  of  development,  division
of manufacture, transmission and consumption of energy took place.
    Revolutionary modifications in use of energy connected with  appearance
of  universal  electric  machines  and  power  grids.  Social   changes   to
informational society take in all countries.
    On base of analogy between matter, energy and information we  can  have
ideas about future. Earlier,  for  example,  number  of  manufactured  metal
played the strategic role and was the description  of  development.  Now  we
save metal, energy and we think about energy saving technologies.
    It  is  very  difficult  to  predict  many  steps  of  informatization.
Telecommunications changes world very much.


    In each  device  developed  by  human,  collection  and  processing  of
information take place. Even simple soda water apparatus  when  it  receives
money, this apparatus collect and analyze information about  coin  and  then
either  return  the  coin  or  give  glass  of  soda  water.  In  that   way
telecommunications may change us and world in future.
    Nobody knows what our future will be like. Some  people  say  that  big
spacecrafts will be built and that people will  visit  distant  planets  and
make their settlements there.  Some  people  say  that  technology  will  be
developed to such an extent that computers will control  the  world.  Others
think that there will be world disasters floods,  droughts  and  earthquakes
alike - and that they will destroy the human race. Christians  believe  that
the end of the world is near and that the God will come  to  part  the  good
people from the bad ones. There are people who believe that  pollution  will
cause the decline and fall of the mankind and there are  those  who  predict
that a gigantic shooting star will crash into the Earth at the turn  of  the
century. Some people claim that alliens are planning to attack and  turn  us
into their slaves.
    So, is there, after all, a slight chance that people will finally  come
to their senses and that there will be at least no starvation and wars?
    I think that bright future is in front of us. Just take a quick  glance
through history and you will realize it too: in ancient times people  killed
each other in order to have meat for  dinner,  later  in  order  to  satisfy
their own vanity and today without any reason at all. As you can notice,  we
are developing very fast! Neighbors are killing each other out  of  boredom;
mothers are killing their newborn babies out of some  little  sick  reasons.
Isn’t it obvious  that  we  are  considerably  improving  species  which  is
getting wiser every day?
    If we try to make this world better we shall succeed. But, are we ready
to do it now? Are we really environment friendly  while  not  recycling  but
just piling rubbish in the middle of  once  green  meadows,  while  shooting
bears and foxes just because of their  fur?  Are  we  really  worried  about
thousands of hungry people while we are throwing away fresh food in  garbage
bins? Do we really care about  all  those  thirsty  children  while  we  are
splashing  about  in  swimming  pools?  Are  we   really   concerned   about
dangerously polluted air our descendants will have to inhale  while  we  are
driving happily our flashy cars? Can we even try to imagine the ugliness  of
the desert we are going to leave to our grandchildren?
    It could be estimated that an average person spends  a  minute  a  year
thinking about the future of our planet and  I  do  not  know  if  I  should
compliment this or not. Is it an achievement after all?
    I express my gratitude for devoting people’s lives to saving our future
world by making other people aware that the appalling  problems  of  poverty
and arms build-up should be dealt with  soon  and  that,  among  many  other
things, our seas and forests deserve more  protection  than  they  get.  The
only way we can show the Earth our respect is to  change  our  attitude  and
behavior before it is too late. So let’s do it now.


         “LOGOS”, 2003
         “ANT”, 2002
      3. “AGE” №51, 2000