Eugene Iladi, writing on Prime Tass:
A new storm is brewing in the fiercely competitive, but lucrative, Russian telecommunications market, threatening the stakes of established operators and the stability of the sector.
The granting of new LTE licenses (Long Term Evolution or 4G technology) is shaping to become a potential battleground between Russia’s so-called “big three” mobile telecom operators, Mobile TeleSystems (MTS), VimpelCom and MegaFon, and two newly established start-up competitors, Osnova Telecom and Red Telecom.
The Russian State Radio Spectrum Committee and the Ministry of Telecommunications are in charge of disposing of the licenses and have come under tremendous pressure to grant the new LTE technology spectrum to newcomer start-ups, such as Osnova and Red, without a public tender. How transparent and fair this process unfolds will determine the shape of the Russian telecom industry and the future of foreign investment in the country. Estimated at nearly $40 billion for last year alone, and expected to grow to $48.5 billion by 2013 according to a Pyramid Research survey, Russia boasts Europe’s largest and fastest-growing telecom market.