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bne Tech
May 24, 2019 www.intellinews.com I Page 24
Progress made towards creating Russia's 5G network
Vladimir Kozlov in Moscow
Russia has made another step towards launching the fifth generation of cellular mobile communications (5G), as state-controlled telecoms operator Rostele- com transferred companies that tested the relevant technology to its subsidiary, Bashinformsvyaz.
What is significant about the deal is that the com- panies, which were assigned frequencies required for establishing 5G networks, will be subsequently transferred to a consortium of telecom compa- nies, established by Bashinformsvyaz and major mobile phone operator Megafon.
Now the frequencies need to be tested for com- patibility with secret services communication systems and those used by government agencies,
Russia is getting ready to launch the fifth generation of cellular mobile communications (5G)
after which they could be used by the consortium's members or, possibly, other companies, as well.
The deal included four companies, which Rostele- com acquired back in 2015 from the FreshTel group, linked to entrepreneurs Viktor Pinchuk and Sulei- man Kerimov. At the time of the acquisition, they reportedly cost the state telecom giant RUB210mn ($3.2mn), but now, because of the frequencies at- tached, the price tag jumped to RUB6bn ($91.9mn).
The companies own frequencies in the 3.4 GHz to 3.5 GHz range, which will be vital for developing a 5G network.
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Russia’s economy ministry launches Virtual Economic Zone idea
Russia's Ministry of Economic Development floated the idea of creating Virtual Economic Zones (VEZ) for IT export-oriented companies, in order to help comply with one of the May decrees of President Vladimir Putin of boosting non-com- modity exports from $150bn in 2019 to $250bn by 2024, Vedomosti daily said on May 20 citing drafts of ministry's proposals.
As reported by bne IntelliNews, the VEZ idea
was first voiced by the state integrated telecom major Rostelecom and Russian Union of Entre- preneurs and Industrialists (RSPP), who saw it as a way of boosting Russia's share on the global
market of data processing centres from 0.9% to 5% by 2024.
In 2018 Russian IT exports stood at $10bn, up by 19% year-on-year, according to the data of Rus- soft cited by Vedomosti, while only about $5.5bn of that was repatriated.
IT incubators such as Skolkovo hub already provide its residents 10-year exemption from income tax and VAT, discounts on social security payments, and waivers for property taxes and excise duty.
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