Sistema wants 1.5 bln rbl refund for MTS’ 2.5 GHz frequencies

MOSCOW, Sep 14 (PRIME) — Russian multi-industry holding AFK Sistema is looking for a 1.5 billion ruble reimbursement for the expected revocation of its subsidiary major Russian mobile provider MTS frequencies in the 2.5-gigahertz (GHz) band by the State Radio Frequency Commission in 2012, AFK Sistemas President Mikhail Shamolin told reporters Wednesday.

If the frequencies are given to somebody else to use, then we should get a reimbursement in order to switch subscribers to other standards and continue the business, Shamolin said, adding that the reimbursement should compensate the costs of building the network.

The State Radio Frequency Commission in early September decided to revoke frequencies in the 2.52.7 GHz range currently used by MTS and another major mobile operator MegaFon for developing WiMAX wireless broadband services and by MTS affiliated satellite TV operator Kosmos-TV and allocate smaller bands in another frequency range for the two companies. Specifically, the regulator ruled that MTS right to use the WiMAX frequencies would expire in September 2012, instead of 20162020 as was previously approved. MTS President Andrei Dubovskov complained about the regulators decision to the Federal Antimonopoly Service (FAS), claiming that the decision limited competition on the wireless broadband market and discriminated against MTS, business daily Vedomosti reported on September 9.

The regulator made the decision as part of a plan for the development of fourth generation (4G) wireless services via Long Term Evolution (LTE) technology, generally based on recommendations submitted by a consortium of major telecommunications operators.

(30.1872 rubles U.S. $1)


Leave a comment