Rostelekom, the Russian long distance carrier, has formed a new telecommunications operator, Russian Overlay Network Ltd, to take a controlling interest in the 50x50 project -- the ambitious plan to improve the quality of Russian intercity communications.


The 50x50 project, which will involve major chunks of foreign investment, has already attracted the interest of companies from Germany, France and the United States, according to the Communications Ministry.


Since it is the policy of the Communications Ministry to have a hand in most of the domestic and international telecom ventures, the newly created Russian Overlay Network, or RON, will own a controlling interest in the international company that will run the 50x50 project.


The project will cost about $15 billion to carry out, and the creation of RON, announced this week, was to help raise this money.


The company will be granted a license for local and intercity communications.


Fifteen representatives from Russia's regions will constitute the board of directors of RON. Valery Kirichenko, vice president of Rostelekom, was appointed as general director.


The project is an attempt to bring some order to the so-far chaotic development of communications in Russia. Different Western companies have been working in different cities and implementing technology that are not necessarily compatible with each other.


The potential Western participants are expected to gather next April to sign the agreements and discuss the principles of its financial and technical policy.