LTE plans in Russia may be delayed owing to governor’s resignation (Russia)
Igor Slyunyaev, governor of the Kostroma region, submitted his resignation from the post which could result in a delay for LTE (Long Term Evolution) frequencies for mobile operators in Russia. According to reports, Sergey Sitnikov, the head of Roskomnadzor, Russia’s telecoms oversight regulator, has been appointed acting governor in his place. The delay could occur as the regulator is the one responsible for organising the tenders.
As per reports, Telesystems, VimpelCom, MegaFon and Rostelecom, had previously submitted their tenders which have already been delayed.
Rostelecom and MegaFon sign 4G service agreement with Scartel (Russia)
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.
Rostelecom plans MVNO on MegaFon network (Russia)
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.
Russia plans LTE license auction later this year
Communications and Press Minister Igor Shchyogolev has announced that Russia expects to tender licenses for the LTE services in the second-half of this year.
According to him, the ability to offer LTE licenses however depends on whether the big three mobile operators and Rostelecom manage to draw up a digestible scheme for converting military frequencies.
Last month, the State Commission for Radio Frequencies authorized MTS, VimpelCom, MegaFon and Rostelecom to form a consortium to research the LTE frequency spectrum and prepare proposals for conversion, which will be reviewed at a commission meeting in July. Other smaller operators might join the consortium later.
One a proposal is put in place, then the licenses will be tendered, but it will remain up to the operators to secure contracts with the Defense Ministry to release the radio spectrum, adding an element of uncertainly to the process.
Shchyogolev added that the procedure won’t be the same as in the past. … They are announcing the tender immediately. The winners will have to pay the costs of conversion, of manufacturing equipment for the military, and they may immediately begin to offer communications services to the extent they free up the frequencies.
MegaFon Q3 revenue rises by 23% (Russia)
Russian mobile network operator, MegaFon, has announced its Q3 results. As per the results its revenue increased by 21.3% reaching US$1.84 billion, while net income grew by 23.1% year-on-year, to US$447 million. However, OIBDA margin in the quarter dropped to 46.1% as compared to 49.7% in the third quarter of 2009.
The company also reported that it had 56.4 million net subscribers as of September 30, 2010, a 16.3% increase year-on-year.
According to Sergey Soldatenkov, Chief Executive Officer of MegaFon, the company has achieved excellent results in the third quarter. The Company keeps growing on a sustainable basis. In addition to growth in their traditional voice services, the growth was also driven by data services which increased by 14%. This is why they are focusing on projects related to the further development of 3G networks and data centers in the coming three years. The company will continue the integration of their mobile and fixed-line businesses so as to move MegaFon towards its objective of becoming a universal operator with rapid growth in all telecom market segments to the benefit of our clients.
During the quarter, the number of 3G base stations installed in the Stolichny Branch (Moscow and the Moscow Region) reached one thousand. By the end of 2010, the total number of 3G sites will grow to 2,500. MegaFon and Rostelecom also tested LTE networks at one of the main Olympic sites – the downhill ski resort Roza Khutor located in Krasnaya Polyana.
Russian Government to check valuations in Rostelecom merger
The Russian government has ordered an independent audit firm to keep a check on how the seven regional telecom companies, which are to be merged with OAO Rostelecom in the upcoming year has valued the deal.
According to reports the Russian Economic Development Minister Elvira Nabiullina wrote a letter to Prime Minister Vladimir Putin that the share swap ratio was more favorable to the shareholders of the regional companies than to Rostelecom’s owners.
The regional companies, currently controlled by state-run OAO Svyazinvest, will merge with Rostelecom, Svyazinvest’s main unit, in a share swap deal planned for closure by March. The merger is the part of Russia’s plan to restructure its fixed-line sector.
According to the company, the state will not lose control in Rostelecom as a result of the merger. As for the fairness of the ratios, the swap coefficients have been approved by Rostelecom and the regional companies’ shareholders.
MegaFon buys fibre-optic operator Metrocom (Russia)
Russian mobile operator MegaFon has agreed to acquire 100% stake of Metrocom, a St Petersburg-based regional operator in a deal worth US$67 million.
MegaFon will acquire 55% stake of Metrocom from the government and 45% stake from Russian company MCT, which is owned by the son of St Petersburg governor Sergei Matvienk.
The stake in Metrocom was auctioned by the Russian state property fund; competitor telcos Mobile TeleSystems (MTS) and Rostelecom ruled themselves out of the auction, citing that US$67 million is too expensive.
Metrocom owns a 1,500km fibre-optic network and is presently the sole operator in St Petersburg with metro cables in place. The company is employed in providing telephone services, Internet, data transmission, as well as rent a wide range of communication channels.
Rostelecom to construct LTE network in Sochi (Russia)
www.WirelessFederation.com/news: An application has been filed in the State Commission for Radio Frequencies by Russian national operator Rostelecom for permission to construct Long Term Evolution (LTE) networks in Sochi. LTE development in the same region is also on the cards of mobile operator MegaFon.
Both operators are sponsors of the Winter Olympics 2014 which will be held in Sochi.
However, it has been argued by the ministry that building two LTE networks in the city is impractical and has called for negotiation between the players.
Rostelecom to acquire 25% of Svyazinvest (Russia)
www.WirelessFederation.com/news: Acquisition of 25% plus one share stake in the controlling stockholder, Svyazinvest, has been started by the giant Russian fixed line telephony provider, Rostelecom. Buying of stake in Svyazinvest from Moscow-based fixed line operator Comstar United TeleSystems has been agreed upon by Rostelecom with an investment of RUB26 billion (USD855 million).
51% of Rostelecom’s shares have been owned by a holding company for many national and large regional Russian telecoms assets, Svyazinvest. Federal Anti-Monopoly Service (FAS) has formally asked Rostelecom to approve the purchase; the state has endorsed the reorganization of Svyazinvest under the Rostelecom umbrella, to increase the holding company’s efficiency and reveal the true value of its assets.
Ratios for a planned stock swap between the subsidiary and eight regional fixed line operators have also been approved by the directors of Rostelecom last week.
