Rostelecom not in hurry to build mobile networks in new regions
MOSCOW/YAKUTSK/NOVOSIBIRSK. Nov 2 (Interfax) - Rostelecom , Russia's national telecommunications provider, will complete rolling out 3G networks in the first half of 2013 in regions where it already provides mobile services.
The company now provides mobile services in 30 regions, in ten of which 3G networks will be up and running by the end of this year and in the remainder they will be operational in April-May 2013, Rostelecom vice president and commercial director Pavel Zaitsev told reporters.
In addition, Rostelecom plans to launch 3G networks in five new regions next year: Moscow, St. Petersburg, Novosibirsk, Krasnodar and Samara.
The 3G networks are being launched by wholly owned subsidiary Sky Link, which holds licenses to 3G frequencies in the 1.9-2.1 GHz band in 69 regions of Russia.
Sky Link also holds 900 and 1800 MHz GSM licenses in 45 regions of the country, but is not rushing to roll out full-fledged networks in regions where Rostelecom does not yet provide any mobile services. The exceptions next year will be Novosibirsk and Krasnodar, where the company will roll out multi-standard GSM and 3G networks. Rostelecom and Sky Link do not have GSM frequencies in Moscow, St. Petersburg and Samara, so only 3G networks will be launched there.
In the remaining regions, for now Sky Link plans to build only minimal GSM networks in order to protect its licenses, under which the deadline for starting services is the end of November-beginning of December this year. "Existing licenses will be protected by all available means," Zaitsev said. He did not provide more details on how the company would tackle this issue.
A source close to Rostelecom told Interfax that under the tender called at the end of October for a supplier of equipment and construction of GSM, 3G and LTE networks the company will also select a contractor to roll out minimal GSM networks that meet license conditions.
In future, Rostelecom plans to build GSM and 3G networks where it makes economic sense to do so, Zaitsev said.
He said the company also has its hopes set on changes to network construction rules being prepared by the Communications Ministry. It is expected that the regulator will allow construction of distributed switching systems that can serve customers in several regions at once, rather than in one like now. This will reduce costs and accelerate network construction. "As regulations change, we will adapt and revise plans," Zaitsev said.
He said Rostelecom's subscriber base will total 13 million by the end of the year, not including Sky Link's CDMA business, which will also be brought under the Rostelecom brand next year.
Rostelecom's pricing policy on the mobile market will be closer to that of Tele2, which offers services at a discount to the rates charged by Russia's big three operators MTS, Megafon and Vimpelcom, Rostelecom Siberia commercial director Valery Belenky told reporters.
Rostelecom has said it will allocate up to 20% of its 2013 investment program to the development of its mobile business.
Asked about construction of 4G LTE networks, Zaitsev said that in 2013 Rostelecom would limit itself to launching networks in five regions. This is the minimum number of regions stipulated by the terms of the July 2012 tender at which Rostelecom won LTE frequencies.
Penetration of smart phones and tablets that support LTE is still low on the Russian market and there is no point in rushing to launch such services, Zaitsev said. He stressed that Rostelecom is building all of its 3G networks LTE Ready, which will enable it to roll out LTE services with minimal upgrades as the market becomes more saturated with user devices that support this technology.
Rostelecom is also looking into launching LTE services in individual large cities, Zaitsev said, citing Vladivostok and Khabarovsk as examples. The decision on launching LTE networks there will be made by the end of 2012.
