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coverage, but the suggestion was criticised by the operators as an unsustainable short-term solution. Now MegaFon and Rostelecom have reportedly negotiated to establish an integrated infrastructure consortium that would take on the construction of all 5G networks in Russia, according to Kommersant. State-controlled Rostec could join the consortium. Analysts surveyed by Kommersant commented that while the united infrastructure operator would indeed lower the costs of 5G rollout for the operators, it would carry potential risks for consumers due to lack of competition. In the next five years the costs of 5G implementation in Russia for the operators could amount to RUB300bn ($5bn), the COO of MegaFon and the head of Russia's newly established big data association Anna Serebryanikova estimated. A study by PricewarterhouseCoopers estimated that in 2020-2027 5G costs for the operators would amount to RUB550bn-610bn should all operators create their networks separately, RUB400bn-445bn should two operators use 70% of all stations, and RUB330bn-365bn should all four large telecom operators (MegaFon, MTS, VEON, and Rostelecom) create an integrated 5G network. The “Digital Economy” program approved by the government targets a 5G roll out in all large Russian cities with over 1mn population by 2020.
5G networks may be liberalized. The Ministry of Digital Development, Communications, and Mass Media is considering allowing access to any company that wants to test the 5G system. MinKomSvyaz's idea makes perfect sense to encourage investment into the telecoms sector and provide an avenue for economic growth and innovation. By liberalizing the process of testing and establishing 5G networks, it opens the door for mid-sized firms to play a role in the digitalization obsession sweeping Moscow. But more important -- and more Russian -- is the fear that consumers will simply try to build their own 5G networks without paying taxes or any proper regulation. 5G requires a backbone of infrastructure to function, which means a large national provider is best suited to build the initial network. It's unclear this enables that to happen. Expect business lobbying chaos.
● One industry insider warned that the proposal would create "not a network, but a patchwork quilt." Another said that telecoms companies see the idea as a "serious threat."
● When 3G and 4G networks were tested, only telecoms operators were allowed to participate. Next time, potential customers could skip the telecoms operators entirely and develop their own technology.
● A 5G network would require a supporting network, which means a lot of infrastructure throughout Russia. It's not clear that companies other than telecoms operators would have an incentive to build these networks. They are not the only ones with preexisting networks, however; RZhD and oil and gas companies also have telecoms networks.
● According to the government's plan, 5G networks should be available to consumers across the country by December 2021. Because 5G works especially well with the "Internet of Things," MinKomSvyaz is focusing on innovative ways to provide services with 5G networks.
9.1.9 Tourism sector news
The Russian government sees tourism as a “break through” sector and hopes to increase revenues from tourism four-fold in the next five years, says Economic Development Minister Maxim Oreshkin. The attention should also be paid to domestic tourism, as well as to increasing the tourist flow of foreign
93 RUSSIA Country Report December 2018 www.intellinews.com