MOSCOW-Russia is determined not to lag behind the industrialized world in wireless communications and is planning to issue the country’s first third-generation (3G) licenses in the beginning of 2001.
“Our goal is to start issuing licenses for the construction of 3G networks early next year,” Communications Minister Leonid Reiman said. “If we look at countries of Europe, Scandinavia, we shall see that 3G networks will begin to really operate there in 2002. Therefore, we have time to issue licenses and construct the networks,” he added.
So far, it is unclear how the licenses will be issued. Reiman hinted Russia might ignore the European trend of auctioning the frequencies.
“As for today, the 3G license issuing procedure has not been defined. As far as auctions are concerned, I would not overestimate their significance as the winning carriers would retain the paid amounts from the customer,” the minister said. “I believe the basis for receiving a license has to be an optimal network development, the speed of its construction, the quality of services and the tariffs,” Reiman said, adding that the procedure would still be competitive.
The procedure is to be defined by the 3G-Carrier Association, which was launched in Russia two years ago and unites the carriers willing to operate the new technology. The association is to draft the technical and legislative documents, as well as the procedures and priorities for issuing licenses in the 2 GHz band by the end of 2000.
The State Committee for Frequencies has already provided two bands-1927.5-1942.5 MHz and 2117.5-2132.5 MHz-for trial 3G systems in Moscow and St. Petersburg.
Although the charter of the association states that its members receive no special consideration in receiving a license, carrier Mobile Telesystems (MTS) expressed confidence it would receive a license and launch a 3G network at the end of 2001. Vimpelcom said it is conducting research and exploring opportunities for introducing Universal Mobile Telecommunications System (UMTS) technology.
But Minister Reiman was evasive in naming the candidates, saying both Russian and foreign companies would be able to compete.
“It is clear that Russian carriers who are experienced in operating the 1G and 2G technologies will compete for the 3G licenses. That is logical and correct. Surely, foreign companies together with their Russian strategic partners will also compete, as well as companies without such experience, but with a big wish to participate,” he said.
The minister believes major Russian cities, such as Moscow and St. Petersburg, can initially have at most two 3G carriers. “Gradually, we shall reach the situation like in Great Britain, where five licenses were issued,” he added.
“We are first and foremost interested that such communication systems are being built and developed in Russia,” Reiman said.
