Rostelecom and MegaFon sign 4G service agreement with Scartel (Russia)

On 12.01.11, In Mobile, By Editor

Mobile operator MegaFon along with State-owned telecommunications company Rostelecom, have reportedly signed an agreement with Scartel to offer 4G services in Russia. According to reports, the agreement with Scartel, which operates under the brand ‘Yota’, will enable the two operators to act as mobile virtual network operators (MVNO) for offering 4G services.

As per sources, as part of the agreement, Yota would use Rostelecom and MegaFon’s infrastructure, in exchange for its 4G network. Further, industry analysts have reportedly said that as Scartel is the only company in Russia which has built a 4G network, the two operators will gain significant lead in providing users with 4G services as compared to TeleSystems and VimpleCom.

 

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Any consolidation of mobile market in Russia to include Tele2 says VimpleCom (Europe)

On 11.21.11, In Mobile, By Editor

VimpleCom, the third largest telecom operator in Russia, has reportedly said that any consolidation in the telecom industry in Russia will have to involve Tele2 as there will be no consolidation among the top three wireless operators of the country.

Mobile TeleSystems is the leading operator in the country followed by MegaFon and VimpleCom. Tele2 is currently the fourth largest player serving over 20 million customers. As per sources, Jo Lunder, CEO, VimpleCom said that the outcome of the 4G spectrum auction would be crucial in deciding the future performance of the operators.

He added that VimpelCom’s biggest operational challenge is to improve its performance in its Russian home market. As per reports, the CEO also said that the focus of the firm, which also has operations in parts of Asia and Africa, as well as in Italy and Canada, is more on cash generation and less on building subscriber and revenue market share.

According to reports, Lunder also said that they are very optimistic with regards to Wind and the Italian market, having secured good spectrum for 4G in Italy, and expect it to develop into an advanced data market.

 

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Russia’s network-sharing deal in trouble over pricing problems

On 08.31.11, In Mobile, Mobile Operators, By Editor

Russia’s leading mobile network operators MTS, VimpelCom (Beeline), Megafon along with Rostelekom, had signed a deal with Yota to provide mobile broadband services via its LTE network, earlier this year. In the first of its kind, competing service providers will come together to offer their consumers better services via a single network. The said network is expected to serve over 70 million people across 180 cities in Russia in 2014. The deal benefits the operators by saving costs required to build an individual network while at the same time providing users faster access to 4G services. Reportedly, Dennis Sverdlov of Yota says that this network sharing approach will not only help the entire telecom industry but also boost the Russian economy.

However sources claim that this deal may already be facing a few problems especially in relation to pricing. Skartel owned Yota has valued itself at $1 billion creating a cause for concern for the operators. As per the agreement, each operator has the right to buy 20% shares in Yota once the network is completed, in 2014. However, industry insiders claim that the valuation may cause the deal to end as it has been inviting objections by the network operators. Talk are said to be ongoing between Skartel and the network operators.

 

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MegaFon launches 3G services in Voronezh (Russia)

On 03.22.11, In Mobile, By Editor

Russia’s MegaFon has commercially launched its 3G services in 17 towns in the Voronezh region.

The operator is planning to cover the whole area of the region with its 3G network by the end of this year. MegaFon offers up to 7.2Mbps download speeds for subscribers in the region.

 

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MegaFon mulls to acquire NTC (Russia)

On 03.15.11, In Mobile, By Editor

Russian mobile operator MegaFon is interested in acquiring the regional mobile operator NTC.

According to reports, the company is cautious about pursuing a deal, due to expected opposition from the national competition regulator FAS.

MegaFon’s market share in the region would exceed 50% if it acquired NTC. NTC operates in the Primorye region, with a subscriber base of 1.5 million. Korea Telecom, the owner of NTC, plans to sell the regional operator.

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Yota announces plan for $2 billion LTE network (Russia)

On 03.04.11, In Mobile, By Editor

Yota, Russia’s WiMAX to LTE network operator, has announced a its plans to build a US$2 billion LTE network covering 180 cities with a total population of more than 70 million citizens by 2014.

The network, which is being funded by bank loans, will then be offered on an MVNO basis to four of the country’s­ main mobile networks – Beeline, Megafon, MTS and Rostelekom.

The four networks have also been granted options to buy 20% stakes in Yota once the network is completed in 2014. State Corporation Russian Technologies, which currently owns 25.1% in Yota has supported the agreement.

According to Yota CEO Dennis Sverdlov, this deal is an endorsement of their vision for the future of the telecoms industry. They firmly believe in the separation of network ownership and service provision and believe that this ground-breaking agreement will drive innovation and benefit Russian consumers. Even more importantly, they believe that Yota can help all operators across the world to take advantage of the massive opportunity that 4G brings.

Yota currently operates networks in Russia, Belarus and Nicaragua and expects to launch in Peru shortly.

 

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Rostelecom plans MVNO on MegaFon network (Russia)

On 03.03.11, In Mobile, By Editor

Russian national operator, Rostelecom has reportedly entered into negotiations with cellco MegaFon to use its network for the potential launch of a mobile virtual network operator (MVNO).

According to reports, Rostelecom approached all of the so-called ‘Big Three’ operators (also comprising Mobile TeleSystems (MTS) and VimpelCom) for the mooted MVNO, but the deal with MegaFon is the one that has been tipped to succeed.

 

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Moscow Federal Arbitration Court rejects latest TeliaSonera, Altimo merger appeal (Russia)

On 02.22.11, In Mobile, By Editor

If reports are to be believed, Russia’s Federal Arbitration Court for the Moscow District has upheld a lower court’s earlier ruling to reject a long-mooted deal concerning the ownership of Russian cellco MegaFon.

The argument involves Nordic telecoms group TeliaSonera and Altimo, the telecoms arm of Russia’s Alfa Group, who are keen to combine their respective stakes in MegaFon and Turkey’s Turkcell.

The key shareholders sought to cancel the ruling issued by the Ninth Arbitration Court of Appeals in October 2010, which sided with MegaFon’s third major shareholder, Telecominvest.

Telecominvest, which is owned by Russian billionaire Alisher Usmanov, instituted legal proceedings to block the merger, claiming the deal violated Russia’s rules on foreign investment.

In December 2010, Igor Artemyev, director of the Federal Antimonopoly Service (FAS), confirmed that the Russian government’s commission for foreign investments had banned the transference of MegaFon shares to offshore companies as part of the deal.

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FreeMove forms partnership with MegaFon (Europe, Russia)

On 02.15.11, In Mobile, By Editor

­FreeMove, the mobile telecommunications alliance between Deutsche Telekom, France Telecom, TeliaSonera and Telecom Italia has announced its partnership with Russian telecoms operator, MegaFon.

As per the agreement, MegaFon will offer FreeMove’s enterprise mobility solutions to its multinational client base.

According to Sergey Soldatenkov, MegaFon’s Chief Executive Officer, their partnership with FreeMove will provide them with the tools to offer their growing number of multinational customers increased simplicity, efficiency and transparency across their mobile operations. By joining the alliance, they will be able to provide better support their enterprise customers as they meet the challenges of a rapidly changing communications environment and strengthen their position in Russia’s highly competitive market.

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MegaFon selects NEC to build indoor mobile network

On 02.15.11, In Mobile, By Editor

NEC Corporation announced today that MegaFon (Headquarters: Moscow, Russia; Director General: Sergei Soldatenkov), a leading Russian mobile operator, has selected NEC’s femtocell solution to enhance the indoor mobile experience of its residential and enterprise customers.

MegaFon plans to launch the high-speed, high-quality indoor mobile service to its residential and enterprise customers later this year.

The NEC femtocell solution was successfully tested and trialled with MegaFon subscribers at the North-West branch of MegaFon in Saint-Petersburg in 2010.

The majority of mobile traffic (up to 70 per cent)(*) is generated indoors; however there is an inherent 3G mobile challenge of unreliable indoor coverage. Femtocells extend indoor mobile coverage and boost capacity ensuring high speeds and reliability.

NEC’s femtocell solution will allow MegaFon to differentiate by providing their customers with premium mobile services,” said Vladimir Lobanov, Head of Project Management Division, CJSC NEC Neva Communications Systems, a subsidiary of NEC in Russia. Our femtocell solution will ensure that their customers always have the five-bar coverage indoors that they expect and dedicated capacity to run data-intensive applications on their smartphones and tablets.”

An NEC Femtocell is a small wireless cellular base station similar in size and appearance to a broadband router that connects over broadband to a mobile operator’s core network. It provides dedicated mobile coverage and capacity for full personal use delivering excellent experience and increased customer loyalty.

NEC is providing MegaFon an end-to-end femtocell solution that includes NEC Femtocells, and femtocell gateway systems that connect to MegaFon’s existing core systems. MegaFon’s customers can install the NEC Femtocell with no intervention from MegaFon due to its plug and play” capability.

NEC has 11 contracts worldwide with mobile operators for femtocell system deployments which make up nearly half a million femtocell devices. In addition, NEC has 24 femtocell system trials in progress or that have been completed with mobile operators around the world.

Furthermore, NEC’s commercial accomplishments in the femtocell field include provision of the world’s first femtocell IP Multimedia Subsystem (IMS) for Softbank Mobile Corp. in Japan, the deployment of France’s first commercial femtocell services through SFR and in Norway through Network Norway. NEC is on target to deploy its first 100,000 Femtocell Access Point (FAP) network.

NEC is a board member of the Femtocell Forum, an industry association that was established in July 2007. NEC’s activities and groundbreaking work in the femtocell field are well recognized through honors that include the Femtocell Forum’s 2009 award for Progress in Commercial Deployment” and the 2010 award for Femtocell Network Design and Technology Innovation.”

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