Russian telecom operators to receive substantial discounts on radio frequencies for 5G

MOSCOW. Sept 9 (Interfax) - Russia's Digital Development Ministry has prepared a draft order that envisages substantial discounts for telecom operators paying for the radio frequency spectrum for fifth-generation mobile networks (5G).

The corresponding document specifically indicates the proposal to establish reduction ratios for the payment of frequencies, namely within the "millimeter" range of 24.25-29.5 GHz at 0.001 and within other ranges at 0.1.

"Operators will pay 10 times less for using frequencies within the low ranges and 1,000 times less for using frequencies within the 'millimeter' range than they would pay without the reduction ratios. This will allow the industry to develop more actively and invest in infrastructure, namely build base stations, develop new technologies, and improve the quality of communication," the Digital Development Ministry explained.

The order should come into force on January 1, 2025, the ministry said.

A discount was previously valid when paying for LTE frequencies, thus allowing operators to save around 20 billion rubles annually, the Digital Development Ministry said.

"The technology is currently considered established and does not need additional support measures. More than 90% of the population is within its coverage area," the ministry said.