Rostelecom structure Bulat orders base stations from Chinese Hytes Communications

The developer of telecommunications equipment Bulat (51% from Rostelecom) declared the import into the Russian Federation of communication base stations produced by the Chinese Hytes Communications. They are also supplied under the Bulat brand. Rostelecom received approval from Rospotrebnadzor to install this equipment in villages as part of a program to eliminate the digital divide. Experts believe that Hytes Communications can be not only a supplier, but also a technology partner of Bulat.

“Kommersant” found in the Unified Register of Certificates of Conformity and Declarations of Conformity (maintained by the Russian Accreditation Service) data that Bulat LLC (51% owned by Rostelecom through Commit Capital, 38% by Elvis, 11 % – from Kyutek) on September 13 declared the import into the Russian Federation of base stations (BS) produced by the Chinese Hytes Communications Company Limited. We are talking about the BS-1800HWSW model. The batch size is not specified; the declaration is valid until September 13, 2028.

The certificate card names the production site as an enterprise located in the Chinese city of Dongguan. Judging by the data of the Unified Register of Notifications on the characteristics of encryption tools and goods, notification for the import of a Bulat brand base station, model BS-1800HWSW, into the EAEU was issued on July 13.

Based on the information from the register of sanitary and epidemiological conclusions on project documentation (maintained by Rospotrebnadzor), in the period from May to September the agency issued 512 sanitary and epidemiological conclusions for the placement of transmitting radio engineering facilities, the owner of which was indicated by Rostelecom. In the column “Technical characteristics of transmitting equipment” the same BS-1800HWSW is listed. Conclusions were issued for the installation of equipment in villages and villages.

Rostelecom is the operator of the state program for eliminating the digital divide, adopted in 2014. Then Rostelecom and Rossvyaz signed a ten-year contract. The program involves the organization of communication services in settlements where 250–500 people live. The funds come from the universal communication services fund, which is formed from non-tax quarterly contributions from telecom operators (1.2% of revenue from communication services). The Ministry of Digital Development refused to specify the revenues to the fund at the end of 2022.

According to the “road map” “Modern and promising mobile communication networks”, “Bulat”, together with “New Technological Solutions” (NTR), is implementing a project to develop a BS for small settlements, a pilot batch should be released in June 2025 (see “ Kommersant” dated November 11, 2022). NTR explained to Kommersant that they are responsible for the development of the software: “The first release of the software is planned for December 2023. The development of base station hardware is not part of the company’s tasks.”

Russian telecom operators, after the outbreak of hostilities in Ukraine and the appearance of restrictions that complicated the purchase and support of equipment from Huawei, Ericsson and Nokia, began testing base stations from third-tier Chinese manufacturers. Experts said that this could increase the cost of repairs and maintenance of equipment (“Kommersant” dated September 8). Rostelecom and the Ministry of Digital Development declined to comment; Bulat did not respond.

Apparently, Bulat is “studying available solutions and assessing the possibility of a Chinese partner,” believes Kommersant’s interlocutor in the market: “This can be considered as a stage of preparation for the localization of production in the Russian Federation.” On the other hand, he clarifies, the use of Chinese equipment in the long term “creates risks of dependence.”

Kommersant’s interlocutor at one of the telecom operators believes that the interaction between Hytes Communications Company Limited and Bulat is not limited to the supply of equipment: “It looks like Bulat intends to produce equipment in China developed in the Russian Federation.” A Kommersant source in the IT market believes that Bulat might need BS from China to test its developments: “The company can use a component of someone else’s station to test how software and modules for BS work in a complete assembly.”

Nikita Korolev