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March 2019 www.intellinews.com I Page 2
Russia to introduce 5G
As Russia prepares for the fifth generation of cel- lular mobile communications (5G), officials and major mobile phone operators are yet to work out a common approach.
The government-funded programme Digital Econ- omy stipulates that 5G networks are supposed to be launched by the end of next year in five major sectors of the economy, while commercial opera- tion of 5G is tentatively scheduled for 2021.
However, to go ahead with 5G plans, frequencies in the 3.4 GHz to 3.8 GHz range, currently occu- pied by the Federal protective service and satellite communications, need to be vacated.
Russia's major mobile phone operators, Mobile TeleSystems, MegaFon and Vimpelcom (operat- ing under the brand Beeline) have been lobbying the idea of a consortium that would deal with the frequencies issue and other regulatory business.
"We need a moderator that will work in the in- terests of the entire industry and conduct ne- gotiations with the government on the vacating of frequencies," Gevork Vermishyan, MegaFon's general director, was quoted as saying by RBC.
"We believe that the creation of a consortium or, for instance, joining efforts around an existing legal entity that we formed with [state-controlled tele- coms operator] Rostelecom, is a correct model that would lead us to a positive outcome," he added.
The existence of an entity acting on behalf of the entire industry would help to ensure indiscrimi- nate access to frequencies and facilitate fast crea- tion of 5G networks and recoup of investment, the mobile phone majors maintain. Under that model, the cell phone operators would independently build their 5G networks.
However, Rostelecom, which is the main share- holder in the country's fourth largest mobile phone
operator, Tele2, apparently has its own view of how 5G networks should be developed in Russia.
The telecoms giant has been promoting the idea of a separate company, in which all four major cell phone operators would have equal shares. That company would own frequencies and build a na- tional 5G network to be used by all the four majors.
"Based on the fact that there are no cash reserves in the industry, while it is facing major issues, a [5G] infrastructure has to be built on the basis of a legal entity co-owned by all four operators in equal shares, and that company would be given the entire range of frequencies," Mikhail Oseyevs- ky, Rostelecom's president, told RBC.
Apparently, the execution of Rostelecom's idea would allow the telecoms giant to improve its standing in the mobile segment, where Tele2 is noticeably lagging behind the "big three" operators.
In addition, that concept puts all four major
cell operators in the same shoes, regardless of their cash flow situation, investment capacities and other factors, such as a possible impact of Western sanctions slapped on Russia in wake of Crimea's annexation.
In any case, a final decision is to be made by the communications ministry, and it will have to be made soon.
Meanwhile, the Federal Security Service (FSB) has also expressed interest in developing 5G networks in Russia.
In late January, the agency suggested that it could provide cryptographic solutions and SIM cards for 5G networks and, in the longer run, get involved in replacing imported network equipment with local- ly-manufactured analogues, Vedomosti reported.
The FSB reportedly submitted its proposal to Digi- tal Economy, a government organization in charge of the country's tech development.