Russia's Digital Development Ministry approves order on discounted payments for 5G frequencies

MOSCOW. Sept 20 (Interfax) - Russia's Digital Development Ministry has approved the order that envisages implementing substantial discounts for telecom operators paying for the radio frequency spectrum for fifth-generation mobile networks (5G).

The government has posted the corresponding document implementing the amendments to the methodology for calculating the one-time, annual fees for using the radio frequency spectrum in Russia on the portal of legal acts

The document specifically establishes 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 earlier.

The order enters into force on December 31, 2024, according to the document.

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.