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“Rostelecom”: the creation of 5G networks in Russia will cost 1 trillion rubles

The volume of investments in the deployment of 5G networks in Russia could reach about 1 trillion rubles, which is 3-4 times higher than the cost of construction of 4G. This was stated by the Director of Department of sales channels and services of “Rostelecom” Andrey zimenkov General in the event Wireless Russia Forum. Expenditures for networks of the fifth generation will be on subscribers who do not have a high solvency. This will make it difficult for operators the task of deploying 5G alone.

According to Semenkova, given the size of the required investment, the introduction of 5G will require the creation of a consortium or a single infrastructure operator. In conditions of difficult access to capital and low solvency of customers each operator to undertake this task alone would be impossible, he said.

Representatives of “Beeline”, MTS and “MegaFon” declined to comment on the idea. In turn, Tele2, 45% of which belongs to “Rostelecom”, called it “promising.”

“For the effective development of 5G networks and optimization of the investment operators will need to look for opportunities for joint efforts”, – said the representative of Tele2 Konstantin Prokshin.

Informed about the establishment of a consortium for the development of 5G networks said in the government of Moscow. So, in early April it became known that the Department of information technology (DIT) of Moscow is discussing with mobile operators Association, on the basis of which they will be able to develop a connection 5G.

“5G will require from the participants of the cellular market fold increase in the number of base stations and a completely different principle of network planning, which would entail large investments. This means that operators, in fact, I have to build a large infrastructure, which is quite hard. Therefore, in order not to deprive the 5G project’s investment attractiveness, we are thinking of pooling the efforts”, – noted the head of DEPARTMENT Artem Ermolaev.

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Submitted to the government a draft program “the Digital economy” suggests that in 2018 must be approved coordinated plan of allocation of radio frequencies for the introduction of 5G. In 2019 it is planned to adopt the necessary legislation, and in 2020 5G network should be implemented in all Russian cities. Finally, their “widespread commercial use” is scheduled for 2024.

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