Reducing the fees for the 5G frequency bands should encourage the market to move to the new generation of communications technologies

11 june 2019 | Vedomosti

The Russian ministry of digital development, communications and mass media suggested to reduce the fee for using 5G frequency bands to encourage the market to move to the new generation of communications technologies, according to the head of the Digital Economy Project Office of the Analytical Center Vladimir Mesropyan who gave an interview to the Vedomosti.

Vladimir Mesropyan
Vladimir Mesropyan
Project Management Office for Implementing the Digital Economy of the Russian Federation Program

The representative of the Ministry of Communications has recently said that the ministry was suggesting to reduce the annual fee for using the fifth generation frequency bands because the fee that is being currently charged can create serious obstacles for the operators.

"In addition to using broader frequency bands, deploying 5G infrastructure also costs a lot more: 5G base stations must be deployed with higher density than 3G or LTE base stations. it is impossible to significantly increase prices for cellular communications therefore deploying 5G networks will entail significant costs that operators may not be able to recover under the current market conditions. So, financial incentives are required as well as reducing the fee for the frequency bands" Mr Mesropyan explained.

He also noted that the proposal of the Ministry of Communications offers a direct and effective way to reduce the financial burden of the operators.

"The Digital Economy Project Office is aware of the estimates made by the Ministry of Communications and regards them as a good starting position for negotiations with the operators. It is also possible that business would ask for even bigger decrease in prices but we do believe that a compromise can be reached," the head of the project office concluded.

It should be noted that the deployment of 5G networks is one of the goals stated for the Information Infrastructure project of the Digital Economy national program.

Source: The Vedomosti