The Kremlin has chosen unpopular frequencies for 5G rollout to drive home-made infrastructure development and could enforce the use of domestically produced servers only.
According to bne Intellinews, reportedly GlobalInformService (GIS) and Sozvezdie have already designed and produced 4G network equipment under Rostec’s patronage. However, state funding for the companies currently amounts to only 224 million rubles ($3.5 million).
By comparison, the Ministry of Industry and Trade estimated the total cost of 5G and IoT (internet of things) roll-out at 28 billion rubles ($443 million). The total cost of all network equipment could amount to up to 650 billion rubles (10.3 billion).
Analysts surveyed by Vedomosti stress that until the question of 5G frequencies is decided, it is not clear how the developers could start producing the necessary equipment. The competitiveness of Russian solutions developed from scratch is also questioned.
Independent analysts say the introduction of the 5G network in Russia has been impeded by a lack of clear policy, decisions on framework frequency allocation, rollout strategy and the lack of co-operation within and with the private sector.