MTS began searching for new suppliers of telecom equipment

telecom operator MTS published a request for information on the supply of 5G solutions. We are talking about 5G Small / Pico / indoor BTS – various models of small base stations-repeaters installed to transmit a signal between the main equipment. Information about this “Vedomosti” found on the official website of the company.

The mobile operator accepts applications from March 30 to April 14, 2023. Specific preferred manufacturers are not indicated in the documentation.

There are 37 categories of solutions in the request, including 2G, 3G and 4G controller and base station equipment, radio network management systems, PAC (software and hardware complex) for planning and optimizing the network, software and licenses, as well as related installation, repair, consulting and BSS (Business Support Systems – business support systems) and so on.

The annex to the request states that MTS is looking for equipment capable of working with New Radio (5G), as well as LTE / NR solutions. The bands indicate licensed frequencies n78 (3.5 GHz), n79 (4.7 GHz) in Standalone and Non-Standalone configurations and unlicensed 2.4, 5 and 6 GHz (Standalone), as well as equipment for working in the millimeter wave ( n258 – 26 GHz).

In the requirements attached to the request, MTS indicates that the supplier must confirm “the availability of all necessary permits for the import of goods into the territory of the Russian Federation and use as part of public communication networks.” The partner must also ensure that the product is certified as a “local base station”.

At the end of March 2023, MTS President Vyacheslav Nikolaev in an interview RBC said that the company’s stocks of equipment would be enough for another two years. On April 6, an MTS representative declined to explain the purpose of the placed request for information on the supply of 5G solutions.

But the mechanism for supplying equipment to Russia, which MTS is looking for, is unclear. If we take into account the components for base stations listed in the specification, then none of the top three vendors (HuaweiNokia, Ericsson, which “hold” almost 99% of the Russian market) does not have export licenses for import to the Russian Federation, says Telecom Daily CEO Denis Kuskov. Now the equipment, information about which the operator requests, is not included in the list of goods subject to parallel import, the expert notes.

Vedomosti sent inquiries to the Ministry of Industry and Trade and the Ministry of Digital Development.

In the current circumstances, no one will supply the requested MTS telecom equipment, Kuskov believes. Neither Huawei, nor Nokia, nor Ericsson will risk fulfilling the conditions specified by MTS for the import of equipment, a Vedomosti source close to the operator agrees.

Even if in some way unauthorized base stations are brought into the territory of our country, this does not mean that they will work, since the vendor can easily track them by location, and the software simply does not activate, Kuskov continues. MTS’ request for proposals lists the purchase of active equipment and services for its commissioning and operation, while it will not be possible to assemble a full-fledged fifth generation base station from the listed categories, he explained.

Other vendors, such as those of Indian origin or from other friendly countries, could make such deliveries, but importing cellular equipment requires a large number of permits and tests, warns a Vedomosti source close to one of the vendors. Therefore, most likely, the operator can only rely on the purchase of used equipment, and not from the vendors themselves, but from other operators, he admits.

The condition for operators to be able to continue purchasing and deploying foreign 2G / 3G / 4G solutions was the conclusion of forward contracts with Russian manufacturers, recalls Aleksey Boyko, an analyst at MForum agency. The contracts were concluded and the “pardon” was received by the operators, he states.

At the end of December 2022, all four operators entered into forward contracts with manufacturers of domestic base stations, the telegram channel of the Ministry of Digital Development said. According to the plan, the first Russian telecom equipment should appear in 2025, and from 2028 only Russian base stations can be used.

“It is possible that MTS has received or plans to obtain permission to operate foreign 5G equipment on one scale or another, since the release of Russian solutions may be delayed. Or we are talking about some kind of permissions, for example, for the use of foreign 5G solutions in dedicated communication networks (private 5G networks),” the analyst argues.

Most likely, in the end, we will have to wait for the appearance of Russian telecom equipment, which will be installed first in small towns, and then in megacities, Kuskov believes.

Already in 2023, 100,000 people will be able to use communication services using 5G based on domestic solutions, Vedomosti wrote at the end of December 2022 with reference to the government-approved roadmap “Modern and promising mobile networks” for the period up to 2030 4G networks on Russian equipment will appear only in 2025 – then 6 million people will connect to them, in 2026 – 10 million people, and in 2030 – 100 million people, it was indicated there.