Page 19 - bne_Tech_06_2019

Telecom
June 2019 www.intellinews.com I Page 19
Rostelecom/Ericsson and MTS/Huawei to start 5G testing in Russia
Russian integrated telecom company state- controlled Rostelecom and its mobile subsidiary Tele2 together with telecom equipment major Erics- son will start testing 5G networks in Moscow, the companies announced at the ongoing St Petersburg International Economic Forum (SPIEF).
As analysed by bne IntelliNews, the introduction of 5G network has been slowed by lack of clear policy decision on frequency allocation on one hand, and the lack of cooperation within and with the private sector on the other.
Reportedly Rostelecom and Tele2 will provide 27Ghz frequencies to test 5G connectivity with Ericsson's equipment, which is already used in the US, South Korea, Switzerland, and Australia. Previously Tele2 and Ericsson struck a deal on establishing 50,000 5G-compliant base station in Moscow, St Petersburg, and 27 Russian regions.
In the meantime MobileTelesystems (MTS) mobile ma- jor closed a deal with Chinese Huawei for pilot launch of 5G networks in Russia n 2019-2020. The dead was signed in Kremlin in the presence of the President Vladimir Putin and the head of PRC Xi Jinping.
The companies will advance 5G and Internet of Things (IoT) technologies on the basis of MTS infra- structure and using Huawei equipment. Other Rus- sian operators, namely Vimpelcom and MegaFon also pledged to start testing pilot 5G projects in the short-term, Vedomosti daily reminded on June 6.
Previous reports suggested that frequency deficit could be tackled by Kremlin directly by pressing the military to give up part of the 5G range. Rus- sia's President Vladimir Putin reportedly allowed the release of 3.4–3.8 GHz frequencies that are used by the military for the use by the private sector, reports suggested this year.
Hungary's telecommunication tax compatible with EU rules
Hungary's telecommunications sector tax does not violate European Union rules, according to the opinion of an advocate general of the Court of Justice of the European Union (CJEU).
The opinion was issued in response to a request for a preliminary ruling from the Budapest Administrative and Labour Court in a case involving mobile service provider Vodafone Magyarorszag.
Advocate general Juliane Kokott said the direct, revenue-based sectoral tax does not violate the directive on the common system of value added
tax and is in line with the principle of freedom of establishment.
"There is no indirect restriction of the fundamental freedoms arising from the introduction of the turnover- based income tax with progressive effect for telecom- munications undertakings," according to her findings.
Hungary introduced the telecommunication tax in 2012. The tax rate is 2.5% on net revenue under HUF500mn (€1.5mn), 4.5% of the part of net revenue between HUF500mn and HUF5bn and 6.5% of net revenue over HUF5bn.