Russian base stations for 4G and even 5G networks

We have been talking about import substitution of infrastructure equipment for many years, but the matter is almost not moving forward. If you meticulously study Russian cellular networks, then there will be not so much equipment designed and / or manufactured in Russia. There are many reasons for this, from the lack of an element base to long and large contracts between operators and vendors, which are profitable and do not involve external supplies. Officials tried to approach this task from different angles, but in 2021, patience ran out and they decided to pursue a tough policy. In September 2021, the Big Four will end their LTE licenses, which were issued in 2012. The government felt that this was a convenient excuse to force operators to do several things at once. On August 2, the State Commission on Radio Frequencies (SCRF) decided to extend LTE licenses for ten years for operators, but they must do the following:

  • From January 1, 2023, to use only Russian equipment in the construction of LTE networks, which is included in the register of Russian electronics, they are also required to use Russian software;
  • Before September 8, 2024, provide LTE coverage in all settlements with more than 1000 inhabitants;
  • Until September 8, 2031, cover 99.9% of federal highways with LTE networks.

Let's figure out together what this means for the market and at whose expense this banquet is. Let's start with the equipment for LTE networks, and at the same time let me remind you that 5G networks can also be built only on Russian equipment. The reason is called surveillance, undocumented features, in a word, we must be sure that our networks are somehow protected. Of course, safety plays an important role in the choice of domestic equipment, but the main reason is different - in stimulating domestic production, creating our own developments. The approach of officials is shifting problems to business when slingshots are created, and in order to get around them, operators must solve on their own what officials could not do for many years. In fact, we are invited to build a huge layer of industry in record time, develop our own base stations and start producing them. The task looks unsolvable, but only at first glance and under precisely such conditions.

In February 2021, Rostec Corporation showed the first domestic 4G base, the R45F model supports both LTE and LTE-A, the developer is GlobalInformService, production will be at Ruselectronics. The station operates in the 450 MHz band, the operators do not actually use it, but there are no common and necessary bands in it yet. The cost of this station is unknown, nothing specific can be said about it. The problem is that there should be dozens of such stations, with different characteristics and capabilities, price increments. But there is none of this, since in Russia there is no experience in developing such devices, there are no engineers, and further down the list. The largest state holding was able to give birth to a mouse in the form of its own base station, which raises more questions than it answers.

It is the encumbrance of extending frequencies that can turn the tide, when everything non-Russian is simply and effectively banned. The problem of where to get our stations, software and developments does not disappear, but operators are already looking for a solution using their own resources.

Russia has a huge telecom market, and by the standards of any country, we consume a lot of infrastructure equipment, distances plus the desire to do the best possible, which has become a motivating force for all operators. In Europe, operators are desperately saving on everything, in our country, on the contrary, they are chic, as they try to put equipment where possible and improve the quality of communication. As a result, Russia is a very interesting market for infrastructure solution providers. The size of the market and its omnivorous nature have made it interesting for all vendors, but since 2014 we have seen a gradual reversal in favor of Chinese companies. In addition to politics, there is also a rational grain here, the same stations from Huawei are beneficial in terms of price / quality ratio, the company needs Russia as a sales market amid problems in Europe due to US sanctions. Neither Huawei nor anyone else can lose this market, it is too big, and Russian operators occupy too much of the sales.

Reality and prospects of the IT professions market

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Review of the smartphone Samsung Galaxy A22s 5G (SM A226B/DSN)

A niche smartphone with 5G support for minimal money - it's not even on the Samsung website, but it's sold in Russia. Compare with Galaxy A22 - is it worth the money?

Kia Picanto test. The last of the city cars

Somehow imperceptibly, almost all compact city cars left Russia, which replaced compact class sedans and liftbacks like Hyundai Solaris and Skoda Rapid. There are always two real city cars left on our market, this is the hero of our material Kia Picanto and Chevrolet Spark, along with its counterpart under the Ravon brand.

TCL TW30 MoveAudio S600 TWS headphones review

Any decent smartphone manufacturer is bound to offer their own TWS headset with them. So TCL introduced in December on the Russian market not only a flagship smartphone, but also a flagship headset. Let's see what happened ...

By declaring the need to use Russian infrastructure, the government is threatening that Huawei, Nokia, Ericsson and others will lose this market. Moreover Ladies Salome Necklace, the aggressive competition between them will force someone - to agree to localize production, to transfer the necessary technologies free of charge and in exchange for access to the market. China has done something similar many times in the past, and it works. There is no reason to believe that something will go wrong in Russia.

Maksut Shadayev, minister of the Ministry of Digital Development, said that he had met with suppliers of infrastructure equipment and they are ready to locate production in Russia, as well as transfer intellectual property to Russian companies. We are talking about the same Rostec, plus AFK Sistema plans to engage in such production (they own MTS). I think that now the entire market is in a state of shock, it does not understand how all this will happen in practice, but companies are preparing to transfer production, purchase equipment that will appear. Here is what Maksut Shadayev said about this: “It seems to us that this will significantly reduce the dependence of such a critical telecommunications infrastructure on foreign manufacturers, reduce sanctions risks and, most importantly, use the possibilities of production, which is now being created in terms of microelectronics, an electronic component base for so that we embed these components, fill them with those base stations that will be installed on the communication network.”

Deputy Prime Minister of the Russian government Dmitry Chernyshenko at the beginning of summer argued that operators would have to provide purchase guarantees, production would be reserved for them.

A set of measures developed by the government creates jobs within the country, we obtain licenses and patents, get acquainted with the element base, and even start producing something on our own. But the most important thing in this story is that it is akin to restarting the industry, when, with jobs, people begin to gain experience of what can be created. We do not have people who can work with such electronics, they had nowhere to come from. Now they will gradually appear, as a result, in the future 5-10 years, we can say that in reality our infrastructure electronics may appear. The story is big and interesting, it has many branches.

Why does the government demand to invest in the development of 4G in small towns and along highways? The answer to this question is not on the social agenda, it is solved by itself. This is the load of the very enterprises that will produce “Russian infrastructure”, a sales market is being formed for them, because without it, investments are doomed. Operators could skimp on purchases, their level was extremely small. With new tasks, everything is different, you need to create infrastructure where it was not.

Moreover, infrastructure does not mean the creation of base stations as such, but the whole range of work - the construction of roads, the supply of electricity and communications. This will not be done by the operators, but they become the beneficiaries of this process (few people in the industry believe that everything will go smoothly, but almost everyone believes that such a construction will happen). The state is engaged in processes that have not reached the hands, providing the infrastructure of small villages. In this regard, the statement of Shoigu is interesting, who said that in Russia several new cities with a population of up to half a million people could be built in a few years to concentrate one or another production in them. The story told by Shoigu sounds wild in isolation from other trends, but if you look at the improvement of infrastructure, the task of such cities will become clear, they will be placed in places where electricity and communications will need to be pulled to those very villages. That is, this is patching holes in the country's infrastructure, cities will bring technologies closer to remote settlements, and make the entire infrastructure cheaper.

The government's approach is complex, operators are one of the bricks in this story. According to representatives of MegaFon, the costs of all operators for the construction of LTE in small towns will amount to about 100 billion rubles. This, on the one hand, is a lot, on the other hand, quite lifting money. The economy will definitely benefit from the arrival of LTE and high-quality Internet in remote corners of the country, operators will receive an acceleration in traffic growth, and this is good.

But all the same, the investments that are needed and necessary cannot be received only from the state, and the question arises of who will pay for these plans. The answer, as always, is the same, we will pay for this, because operators have nowhere to get money for the development of networks, except by increasing the cost of communication services. But there is one catch here - our need for communication is constantly growing, we consume more and more traffic, we also pay more for it (at the same time, the cost of one GB is falling year by year, but we need more traffic!). Hidden price increases happen every year, you can not run away from it. The main increase in the cost of communication services is the purchase of equipment that operators buy in foreign markets and for foreign currency. The transfer of production to Russia initially will not be able to change prices, but in the period of 5-7 years this is a very real story. As a result, we will receive preferences, and the rise in communication prices will not be noticeable. The decisions that are being made today will allow us to maintain cheap and very high-quality communications throughout the country.

It is unpleasant for all of us when the usual way of life changes, everything new scares. The fact that people working in telecom often do not see the forest for the trees is normal, this is our usual trait. But for the first time in many years, we can, in a relatively short period of 5-10 years, get an industry that was absent - the creation of an infrastructure for telecom. And this is a kind of revolution that is taking place today and is being decided by purely political instruments, and not by money. There will be no noticeable shocks for you and me as users of communication services, the market will live in the same parameters as today - slow and hidden growth in communication prices, slow deployment of 5G. But the prospects play with colors for the first time, and the race begins for who will supply a huge pile of equipment in the future, not all players have announced their intentions yet, but they are.

Russian base stations for 4G and even 5G networks

We have been talking about import substitution of infrastructure equipment for many years, but the matter is almost not moving forward. If you meticulously study Russian cellular networks, then there will be not so much equipment designed and / or manufactured in Russia. There are many reasons for this, from the lack of an element base to long and large contracts between operators and vendors, which are profitable and do not involve external supplies. Officials tried to approach this task from different angles, but in 2021, patience ran out and they decided to pursue a tough policy. In September 2021, the Big Four will end their LTE licenses, which were issued in 2012. The government felt that this was a convenient excuse to force operators to do several things at once. On August 2, the State Commission on Radio Frequencies (SCRF) decided to extend LTE licenses for ten years for operators, but they must do the following:

  • From January 1, 2023, to use only Russian equipment in the construction of LTE networks, which is included in the register of Russian electronics, they are also required to use Russian software;
  • Before September 8, 2024, provide LTE coverage in all settlements with more than 1000 inhabitants;
  • Until September 8, 2031, cover 99.9% of federal highways with LTE networks.

Let's figure out together what this means for the market and at whose expense this banquet is. Let's start with the equipment for LTE networks, and at the same time let me remind you that 5G networks can also be built only on Russian equipment. The reason is called surveillance, undocumented features, in a word, we must be sure that our networks are somehow protected. Of course, safety plays an important role in the choice of domestic equipment, but the main reason is different - in stimulating domestic production, creating our own developments. The approach of officials is shifting problems to business when slingshots are created, and in order to get around them, operators must solve on their own what officials could not do for many years. In fact, we are invited to build a huge layer of industry in record time, develop our own base stations and start producing them. The task looks unsolvable, but only at first glance and under precisely such conditions.

In February 2021, Rostec Corporation showed the first domestic 4G base, the R45F model supports both LTE and LTE-A, the developer is GlobalInformService, production will be at Ruselectronics. The station operates in the 450 MHz band, the operators do not actually use it, but there are no common and necessary bands in it yet. The cost of this station is unknown, nothing specific can be said about it. The problem is that there should be dozens of such stations, with different characteristics and capabilities, price increments. But there is none of this, since in Russia there is no experience in developing such devices, there are no engineers, and further down the list. The largest state holding was able to give birth to a mouse in the form of its own base station, which raises more questions than it answers.

It is the encumbrance of extending frequencies that can turn the tide, when everything non-Russian is simply and effectively banned. The problem of where to get our stations, software and developments does not disappear, but operators are already looking for a solution using their own resources.

Russia has a huge telecom market, and by the standards of any country, we consume a lot of infrastructure equipment, distances plus the desire to do the best possible, which has become a motivating force for all operators. In Europe, operators are desperately saving on everything, in our country, on the contrary, they are chic, as they try to put equipment where possible and improve the quality of communication. As a result, Russia is a very interesting market for infrastructure solution providers. The size of the market and its omnivorous nature have made it interesting for all vendors, but since 2014 we have seen a gradual reversal in favor of Chinese companies. In addition to politics, there is also a rational grain here, the same stations from Huawei are profitable in terms of price / quality ratio, the company needs Russia as a sales market against the backdrop of problems in Europe due to US sanctions. Neither Huawei nor anyone else can lose this market, it is too big, and Russian operators occupy too much of the sales.

Reality and prospects of the IT professions market

What professions are the most popular and highly paid?

Review of the smartphone Samsung Galaxy A22s 5G (SM A226B/DSN)

A niche smartphone with 5G support for minimal money - it's not even on the Samsung website, but it's sold in Russia. Compare with Galaxy A22 - is it worth the money?

Kia Picanto test. The last of the city cars

Somehow imperceptibly, almost all compact city cars left Russia, which replaced compact class sedans and liftbacks like Hyundai Solaris and Skoda Rapid. There are always two real city cars left on our market, this is the hero of our material Kia Picanto and Chevrolet Spark, along with its counterpart under the Ravon brand.

TCL TW30 MoveAudio S600 TWS headphones review

Any decent smartphone manufacturer is bound to offer their own TWS headset with them. So TCL introduced in December on the Russian market not only a flagship smartphone, but also a flagship headset. Let's see what happened ...

By declaring the need to use Russian infrastructure, the government is threatening that Huawei, Nokia, Ericsson and others will lose this market. Moreover Ladies Salome Necklace, the aggressive competition between them will force someone - to agree to localize production, to transfer the necessary technologies free of charge and in exchange for access to the market. China has done something similar many times in the past, and it works. There is no reason to believe that something will go wrong in Russia.

Maksut Shadayev, minister of the Ministry of Digital Development, said that he had met with suppliers of infrastructure equipment and they are ready to locate production in Russia, as well as transfer intellectual property to Russian companies. We are talking about the same Rostec, plus AFK Sistema plans to engage in such production (they own MTS). I think that now the entire market is in a state of shock, it does not understand how all this will happen in practice, but companies are preparing to transfer production, purchase equipment that will appear. Here is what Maksut Shadayev said about this: “It seems to us that this will significantly reduce the dependence of such a critical telecommunications infrastructure on foreign manufacturers, reduce sanctions risks and, most importantly, use the possibilities of production, which is now being created in terms of microelectronics, an electronic component base for so that we embed these components, fill them with those base stations that will be installed on the communication network.”

Deputy Prime Minister of the Russian government Dmitry Chernyshenko at the beginning of summer argued that operators would have to provide purchase guarantees, production would be reserved for them.

A set of measures developed by the government creates jobs within the country, we obtain licenses and patents, get acquainted with the element base, and even start producing something on our own. But the most important thing in this story is that it is akin to restarting the industry, when, with jobs, people begin to gain experience of what can be created. We do not have people who can work with such electronics, they had nowhere to come from. Now they will gradually appear, as a result, in the future 5-10 years, we can say that in reality our infrastructure electronics may appear. The story is big and interesting, it has many branches.

Why does the government demand to invest in the development of 4G in small towns and along highways? The answer to this question is not on the social agenda, it is solved by itself. This is the load of the very enterprises that will produce “Russian infrastructure”, a sales market is being formed for them, because without it, investments are doomed. Operators could skimp on purchases, their level was extremely small. With new tasks, everything is different, you need to create infrastructure where it was not.

Moreover, infrastructure does not mean the creation of base stations as such, but the whole range of work - the construction of roads, the supply of electricity and communications. This will not be done by the operators, but they become the beneficiaries of this process (few people in the industry believe that everything will go smoothly, but almost everyone believes that such a construction will happen). The state is engaged in processes that have not reached the hands, providing the infrastructure of small villages. In this regard, the statement of Shoigu is interesting, who said that in Russia several new cities with a population of up to half a million people could be built in a few years to concentrate one or another production in them. The story told by Shoigu sounds wild in isolation from other trends, but if you look at the improvement of infrastructure, the task of such cities will become clear, they will be placed in places where electricity and communications will need to be pulled to those very villages. That is, this is patching holes in the country's infrastructure, cities will bring technologies closer to remote settlements, and make the entire infrastructure cheaper.

The government's approach is complex, operators are one of the bricks in this story. According to representatives of MegaFon, the costs of all operators for the construction of LTE in small towns will amount to about 100 billion rubles. This, on the one hand, is a lot, on the other hand, quite lifting money. The economy will definitely benefit from the arrival of LTE and high-quality Internet in remote corners of the country, operators will receive an acceleration in traffic growth, and this is good.

But all the same, the investments that are needed and necessary cannot be received only from the state, and the question arises of who will pay for these plans. The answer, as always, is the same, we will pay for this, because operators have nowhere to get money for the development of networks, except by increasing the cost of communication services. But there is one catch here - our need for communication is constantly growing, we consume more and more traffic, we also pay more for it (at the same time, the cost of one GB is falling year by year, but we need more traffic!). Hidden price increases happen every year, you can not run away from it. The main increase in the cost of communication services is the purchase of equipment that operators buy in foreign markets and for foreign currency. The transfer of production to Russia initially will not be able to change prices, but in the period of 5-7 years this is a very real story. As a result, we will receive preferences, and the rise in communication prices will not be noticeable. The decisions that are being made today will allow us to maintain cheap and very high-quality communications throughout the country.

It is unpleasant for all of us when the usual way of life changes, everything new scares. The fact that people working in telecom often do not see the forest for the trees is normal, this is our usual trait. But for the first time in many years, we can, in a relatively short period of 5-10 years, get an industry that was absent - the creation of an infrastructure for telecom. And this is a kind of revolution that is taking place today and is being decided by purely political instruments, and not by money. There will be no noticeable shocks for you and me as users of communication services, the market will live in the same parameters as today - slow and hidden growth in communication prices, slow deployment of 5G. But the prospects play with colors for the first time, and the race begins for who will supply a huge pile of equipment in the future, not all players have announced their intentions yet, but they are.

Russian base stations for 4G and even 5G networks

We have been talking about import substitution of infrastructure equipment for many years, but the matter is almost not moving forward. If you meticulously study Russian cellular networks, then there will be not so much equipment designed and / or manufactured in Russia. There are many reasons for this, from the lack of an element base to long and large contracts between operators and vendors, which are profitable and do not involve external supplies. Officials tried to approach this task from different angles, but in 2021, patience ran out and they decided to pursue a tough policy. In September 2021, the Big Four will end their LTE licenses, which were issued in 2012. The government felt that this was a convenient excuse to force operators to do several things at once. On August 2, the State Commission on Radio Frequencies (SCRF) decided to extend LTE licenses for ten years for operators, but they must do the following:

  • From January 1, 2023, to use only Russian equipment in the construction of LTE networks, which is included in the register of Russian electronics, they are also required to use Russian software;
  • Before September 8, 2024, provide LTE coverage in all settlements with more than 1000 inhabitants;
  • Until September 8, 2031, cover 99.9% of federal highways with LTE networks.

Let's figure out together what this means for the market and at whose expense this banquet is. Let's start with the equipment for LTE networks, and at the same time let me remind you that 5G networks can also be built only on Russian equipment. The reason is called surveillance, undocumented features, in a word, we must be sure that our networks are somehow protected. Of course, safety plays an important role in the choice of domestic equipment, but the main reason is different - in stimulating domestic production, creating our own developments. The approach of officials is shifting problems to business when slingshots are created, and in order to get around them, operators must solve on their own what officials could not do for many years. In fact, we are invited to build a huge layer of industry in record time, develop our own base stations and start producing them. The task looks unsolvable, but only at first glance and under precisely such conditions.

In February 2021, Rostec Corporation showed the first domestic 4G base, the R45F model supports both LTE and LTE-A, the developer is GlobalInformService, production will be at Ruselectronics. The station operates in the 450 MHz band, the operators do not actually use it, but there are no common and necessary bands in it yet. The cost of this station is unknown, nothing specific can be said about it. The problem is that there should be dozens of such stations, with different characteristics and capabilities, price increments. But there is none of this, since in Russia there is no experience in developing such devices, there are no engineers, and further down the list. The largest state holding was able to give birth to a mouse in the form of its own base station, which raises more questions than it answers.

It is the encumbrance of extending frequencies that can turn the tide, when everything non-Russian is simply and effectively banned. The problem of where to get our stations, software and developments does not disappear, but operators are already looking for a solution using their own resources.

Russia has a huge telecom market, and by the standards of any country, we consume a lot of infrastructure equipment, distances plus the desire to do the best possible, which has become a motivating force for all operators. In Europe, operators are desperately saving on everything, in our country, on the contrary, they are chic, as they try to put equipment where possible and improve the quality of communication. As a result, Russia is a very interesting market for infrastructure solution providers. The size of the market and its omnivorous nature have made it interesting for all vendors, but since 2014 we have seen a gradual reversal in favor of Chinese companies. In addition to politics, there is also a rational grain here, the same stations from Huawei are beneficial in terms of price / quality ratio, the company needs Russia as a sales market amid problems in Europe due to US sanctions. Neither Huawei nor anyone else can lose this market, it is too big, and Russian operators occupy too much of the sales.

Reality and prospects of the IT professions market

What professions are the most popular and highly paid?

Review of the smartphone Samsung Galaxy A22s 5G (SM A226B/DSN)

A niche smartphone with 5G support for minimal money - it's not even on the Samsung website, but it's sold in Russia. Compare with Galaxy A22 - is it worth the money?

Kia Picanto test. The last of the city cars

Somehow imperceptibly, almost all compact city cars left Russia, which replaced compact class sedans and liftbacks like Hyundai Solaris and Skoda Rapid. There are always two real city cars left on our market, this is the hero of our material Kia Picanto and Chevrolet Spark, along with its counterpart under the Ravon brand.

TCL TW30 MoveAudio S600 TWS headphones review

Any decent smartphone manufacturer is bound to offer their own TWS headset with them. So TCL introduced in December on the Russian market not only a flagship smartphone, but also a flagship headset. Let's see what happened ...

By declaring the need to use Russian infrastructure, the government is threatening that Huawei, Nokia, Ericsson and others will lose this market. Moreover Ladies Salome Necklace, the aggressive competition between them will force someone - to agree to localize production, to transfer the necessary technologies free of charge and in exchange for access to the market. China has done something similar many times in the past, and it works. There is no reason to believe that something will go wrong in Russia.

Maksut Shadayev, minister of the Ministry of Digital Development, said that he had met with suppliers of infrastructure equipment and they are ready to locate production in Russia, as well as transfer intellectual property to Russian companies. We are talking about the same Rostec, plus AFK Sistema plans to engage in such production (they own MTS). I think that now the entire market is in a state of shock, it does not understand how all this will happen in practice, but companies are preparing to transfer production, purchase equipment that will appear. Here is what Maksut Shadayev said about this: “It seems to us that this will significantly reduce the dependence of such a critical telecommunications infrastructure on foreign manufacturers, reduce sanctions risks and, most importantly, use the possibilities of production, which is now being created in terms of microelectronics, an electronic component base for so that we embed these components, fill them with those base stations that will be installed on the communication network.”

Deputy Prime Minister of the Russian government Dmitry Chernyshenko at the beginning of summer argued that operators would have to provide purchase guarantees, production would be reserved for them.

A set of measures developed by the government creates jobs within the country, we obtain licenses and patents, get acquainted with the element base, and even start producing something on our own. But the most important thing in this story is that it is akin to restarting the industry, when, with jobs, people begin to gain experience of what can be created. We do not have people who can work with such electronics, they had nowhere to come from. Now they will gradually appear, as a result, in the future 5-10 years, we can say that in reality our infrastructure electronics may appear. The story is big and interesting, it has many branches.

Why does the government demand to invest in the development of 4G in small towns and along highways? The answer to this question is not on the social agenda, it is solved by itself. This is the load of the very enterprises that will produce “Russian infrastructure”, a sales market is being formed for them, because without it, investments are doomed. Operators could skimp on purchases, their level was extremely small. With new tasks, everything is different, you need to create infrastructure where it was not.

Moreover, infrastructure does not mean the creation of base stations as such, but the whole range of work - the construction of roads, the supply of electricity and communications. This will not be done by the operators, but they become the beneficiaries of this process (few people in the industry believe that everything will go smoothly, but almost everyone believes that such a construction will happen). The state is engaged in processes that have not reached the hands, providing the infrastructure of small villages. In this regard, the statement of Shoigu is interesting, who said that in Russia several new cities with a population of up to half a million people could be built in a few years to concentrate one or another production in them. The story told by Shoigu sounds wild in isolation from other trends, but if you look at the improvement of infrastructure, the task of such cities will become clear, they will be placed in places where electricity and communications will need to be pulled to those very villages. That is, this is patching holes in the country's infrastructure, cities will bring technologies closer to remote settlements, and make the entire infrastructure cheaper.

The government's approach is complex, operators are one of the bricks in this story. According to representatives of MegaFon, the costs of all operators for the construction of LTE in small towns will amount to about 100 billion rubles. This, on the one hand, is a lot, on the other hand, quite lifting money. The economy will definitely benefit from the arrival of LTE and high-quality Internet in remote corners of the country, operators will receive an acceleration in traffic growth, and this is good.

But all the same, the investments that are needed and necessary cannot be received only from the state, and the question arises of who will pay for these plans. The answer, as always, is the same, we will pay for this, because operators have nowhere to get money for the development of networks, except by increasing the cost of communication services. But there is one catch here - our need for communication is constantly growing, we consume more and more traffic, we also pay more for it (at the same time, the cost of one GB is falling year by year, but we need more traffic!). Hidden price increases happen every year, you can not run away from it. The main increase in the cost of communication services is the purchase of equipment that operators buy in foreign markets and for foreign currency. The transfer of production to Russia initially will not be able to change prices, but in the period of 5-7 years this is a very real story. As a result, we will receive preferences, and the rise in communication prices will not be noticeable. The decisions that are being made today will allow us to maintain cheap and very high-quality communications throughout the country.

It is unpleasant for all of us when the usual way of life changes, everything new scares. The fact that people working in telecom often do not see the forest for the trees is normal, this is our usual trait. But for the first time in many years, we can, in a relatively short period of 5-10 years, get an industry that was absent - the creation of an infrastructure for telecom. And this is a kind of revolution that is taking place today and is being decided by purely political instruments, and not by money. There will be no noticeable shocks for you and me as users of communication services, the market will live in the same parameters as today - slow and hidden growth in communication prices, slow deployment of 5G. But the prospects play with colors for the first time, and the race begins for who will supply a huge pile of equipment in the future, not all players have announced their intentions yet, but they are.

Russian base stations for 4G and even 5G networks

We have been talking about import substitution of infrastructure equipment for many years, but the matter is almost not moving forward. If you meticulously study Russian cellular networks, then there will be not so much equipment designed and / or manufactured in Russia. There are many reasons for this, from the lack of an element base to long and large contracts between operators and vendors, which are profitable and do not involve external supplies. Officials tried to approach this task from different angles, but in 2021, patience ran out and they decided to pursue a tough policy. In September 2021, the Big Four will end their LTE licenses, which were issued in 2012. The government felt that this was a convenient excuse to force operators to do several things at once. On August 2, the State Commission on Radio Frequencies (SCRF) decided to extend LTE licenses for ten years for operators, but they must do the following:

  • From January 1, 2023, to use only Russian equipment in the construction of LTE networks, which is included in the register of Russian electronics, they are also required to use Russian software;
  • Before September 8, 2024, provide LTE coverage in all settlements with more than 1000 inhabitants;
  • Until September 8, 2031, cover 99.9% of federal highways with LTE networks.

Let's figure out together what this means for the market and at whose expense this banquet is. Let's start with the equipment for LTE networks, and at the same time let me remind you that 5G networks can also be built only on Russian equipment. The reason is called surveillance, undocumented features, in a word, we must be sure that our networks are somehow protected. Of course, safety plays an important role in the choice of domestic equipment, but the main reason is different - in stimulating domestic production, creating our own developments. The approach of officials is shifting problems to business when slingshots are created, and in order to get around them, operators must solve on their own what officials could not do for many years. In fact, we are invited to build a huge layer of industry in record time, develop our own base stations and start producing them. The task looks unsolvable, but only at first glance and under precisely such conditions.

In February 2021, Rostec Corporation showed the first domestic 4G base, the R45F model supports both LTE and LTE-A, the developer is GlobalInformService, production will be at Ruselectronics. The station operates in the 450 MHz band, the operators do not actually use it, but there are no common and necessary bands in it yet. The cost of this station is unknown, nothing specific can be said about it. The problem is that there should be dozens of such stations, with different characteristics and capabilities, price increments. But there is none of this, since in Russia there is no experience in developing such devices, there are no engineers, and further down the list. The largest state holding was able to give birth to a mouse in the form of its own base station, which raises more questions than it answers.

It is the encumbrance of extending frequencies that can turn the tide, when everything non-Russian is simply and effectively banned. The problem of where to get our stations, software and developments does not disappear, but operators are already looking for a solution using their own resources.

Russia has a huge telecom market, and by the standards of any country, we consume a lot of infrastructure equipment, distances plus the desire to do the best possible, which has become a motivating force for all operators. In Europe, operators are desperately saving on everything, in our country, on the contrary, they are chic, as they try to put equipment where possible and improve the quality of communication. As a result, Russia is a very interesting market for infrastructure solution providers. The size of the market and its omnivorous nature have made it interesting for all vendors, but since 2014 we have seen a gradual reversal in favor of Chinese companies. In addition to politics, there is also a rational grain here, the same stations from Huawei are beneficial in terms of price / quality ratio, the company needs Russia as a sales market amid problems in Europe due to US sanctions. Neither Huawei nor anyone else can lose this market, it is too big, and Russian operators occupy too much of the sales.

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By declaring the need to use Russian infrastructure, the government is threatening that Huawei, Nokia, Ericsson and others will lose this market. Moreover, Ladies Salome Necklace, aggressive competition between them will force someone to agree to localize production, transfer the necessary technologies free of charge and in exchange for market access. China has done something similar many times in the past, and it works. There is no reason to believe that something will go wrong in Russia.

By declaring the need to use Russian infrastructure, the government is threatening that Huawei, Nokia, Ericsson and others will lose this market. Furthermore Ladies Salome Necklace Ladies Salome Necklace , aggressive competition between them will force someone to agree to localize production, transfer the necessary technologies free of charge and in exchange for market access. China has done something similar many times in the past, and it works. There is no reason to believe that something will go wrong in Russia.

Maksut Shadayev, minister of the Ministry of Digital Development, said that he had met with suppliers of infrastructure equipment and they are ready to locate production in Russia, as well as transfer intellectual property to Russian companies. We are talking about the same Rostec, plus AFK Sistema plans to engage in such production (they own MTS). I think that now the entire market is in a state of shock, it does not understand how all this will happen in practice, but companies are preparing to transfer production, purchase equipment that will appear. Here is what Maksut Shadayev said about this: “It seems to us that this will significantly reduce the dependence of such a critical telecommunications infrastructure on foreign manufacturers, reduce sanctions risks and, most importantly, use the possibilities of production, which is now being created in terms of microelectronics, an electronic component base for so that we embed these components, fill them with those base stations that will be installed on the communication network.”

Deputy Prime Minister of the Russian government Dmitry Chernyshenko at the beginning of summer argued that operators would have to provide purchase guarantees, production would be reserved for them.

A set of measures developed by the government creates jobs within the country, we obtain licenses and patents, get acquainted with the element base, and even start producing something on our own. But the most important thing in this story is that it is akin to restarting the industry, when, with jobs, people begin to gain experience of what can be created. We do not have people who can work with such electronics, they had nowhere to come from. Now they will gradually appear, as a result, in the future 5-10 years, we can say that in reality our infrastructure electronics may appear. The story is big and interesting, it has many branches.

Why does the government demand to invest in the development of 4G in small towns and along highways? The answer to this question is not on the social agenda, it is solved by itself. This is the load of the very enterprises that will produce “Russian infrastructure”, a sales market is being formed for them, because without it, investments are doomed. Operators could skimp on purchases, their level was extremely small. With new tasks, everything is different, you need to create infrastructure where it was not.

Moreover, infrastructure does not mean the creation of base stations as such, but the whole range of work - the construction of roads, the supply of electricity and communications. This will not be done by the operators, but they become the beneficiaries of this process (few people in the industry believe that everything will go smoothly, but almost everyone believes that such a construction will happen). The state is engaged in processes that have not reached the hands, providing the infrastructure of small villages. In this regard, the statement of Shoigu is interesting, who said that in Russia several new cities with a population of up to half a million people could be built in a few years to concentrate one or another production in them. The story told by Shoigu sounds wild in isolation from other trends, but if you look at the improvement of infrastructure, the task of such cities will become clear, they will be placed in places where electricity and communications will need to be pulled to those very villages. That is, this is patching holes in the country's infrastructure, cities will bring technologies closer to remote settlements, and make the entire infrastructure cheaper.

The government's approach is complex, operators are one of the bricks in this story. According to representatives of MegaFon, the costs of all operators for the construction of LTE in small towns will amount to about 100 billion rubles. This, on the one hand, is a lot, on the other hand, quite lifting money. The economy will definitely benefit from the arrival of LTE and high-quality Internet in remote corners of the country, operators will receive an acceleration in traffic growth, and this is good.

But all the same, the investments that are needed and necessary cannot be received only from the state, and the question arises of who will pay for these plans. The answer, as always, is the same, we will pay for this, because operators have nowhere to get money for the development of networks, except by increasing the cost of communication services. But there is one catch here - our need for communication is constantly growing, we consume more and more traffic, we also pay more for it (at the same time, the cost of one GB is falling year by year, but we need more traffic!). Hidden price increases happen every year, you can not run away from it. The main increase in the cost of communication services is the purchase of equipment that operators buy in foreign markets and for foreign currency. The transfer of production to Russia initially will not be able to change prices, but in the period of 5-7 years this is a very real story. As a result, we will receive preferences, and the rise in communication prices will not be noticeable. The decisions that are being made today will allow us to maintain cheap and very high-quality communications throughout the country.

It is unpleasant for all of us when the usual way of life changes, everything new scares. The fact that people working in telecom often do not see the forest for the trees is normal, this is our usual trait. But for the first time in many years, we can, in a relatively short period of 5-10 years, get an industry that was absent - the creation of an infrastructure for telecom. And this is a kind of revolution that is taking place today and is being decided by purely political instruments, and not by money. There will be no noticeable shocks for you and me as users of communication services, the market will live in the same parameters as today - slow and hidden growth in communication prices, slow deployment of 5G. But the prospects play with colors for the first time, and the race begins for who will supply a huge pile of equipment in the future, not all players have announced their intentions yet, but they are.