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CONDITIONS FOR APPLICATION FOR AND AWARDING OF LTE LICENCES IN RUSSIA ANNOUNCED

Thursday, May 03, 2012

The Federal Service for Supervision in the Sphere of Telecom, Information Technologies and Mass Communications (Roskomnadzor) today published the conditions for application for and subsequent awarding of LTE licenses in Russia. Conditions are in line with the decision of the State Committee for Radio Frequencies from September 8, 2011, which were previously made public. Full tender documents are available at the regulator’s website http://www.rsoc.ru/news/rsoc/news15162.htm

 

Highlights include:

 

- Four lots are to be made available, each of which consist of of two (2) 7.5 MHz blocks in the range of 791-862 MHz;
- Recipients of each of the lots will also be awarded two (2) 7.5 MHz blocks in the 720-791 MHz range and two (2) 10 MHz blocks in the 2500 – 2690 MHz range
- All of the licenses are nationwide;
- Applications will be evaluated based on a number of criteria, including but not limited to, the applicant’s experience in providing voice and data services; the existence of network infrastructure in regions throughout the Russian Federation, including fiber-optic networks, a commitment to deploy LTE networks in a number of regions in the given period of time, and a commitment to ensure uplink speeds;
- Each lot requires a minimum outlay of RUR 15 billion per year until the LTE network is fully deployed;
- Recipients of each of the lots are obligated to compensating MTS for vacating frequencies that are currently being utilized in Moscow and the Moscow region for the Company's WiMax business in ranges including: 2530-2540 MHz, 2540-2550 MHz, 2550-2560 MHz, and 2560-2570 MHz in the amount of RUR 126.8 million;
- Recipients are also obligated to compensate AFK Sistema for vacating frequencies currently used in Moscow and the Moscow region by Kosmos TV in the amount of RUR 274.1 million;
- Winners of each lot are committed to launching services no later than June 1, 2013;
- Winners of each lot are obligated to fully deploy networks by 2019; and
- Applications must be submitted before June 14, 2012, and results will be announced July 12, 2012.

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