Satellite operator Gazprom Space Systems to start operations in new regions

The Russian satellite operator Gazprom Space Systems (GKS, part of the Gazprom group) received licenses to provide communication services to operate in the DPR, LPR, Zaporozhye and Kherson regions, an interlocutor close to the operator told Vedomosti. The company can provide satellite Internet and TV to residents of the regions in case of damage to terrestrial communication channels (the same applies, for example, to the American Starlink on the territory of Ukraine).

Information about this is also in the statistics of Roskomnadzor (RKN) on the issuance of licenses in the field of communications, published on the agency’s website. It states that at the end of March 2023, the SCC re-registered the expired license, which was valid in certain regions, for a license to provide communication services throughout Russia, taking into account new regions. The RKN register indicates that the operator received three licenses – for services for the provision of communication channels (until May 2026), data transmission services (expires in December 2026) and telematic services (until April 2028).

According to a source close to the operator, when the situation in the regions normalizes, the company will begin to provide services under all three licenses. The representative of the GKS refrained from commenting.

The GCS has five Yamal satellites in orbit, which provide government agencies, television companies, Russian and foreign commercial service providers with fixed satellite communications, according to the company’s website. 79.8% of GKS belongs to Gazprom, another 16.16% belongs to RSC Energia, 4.04% belongs to Gazprombank, according to SPARK-Interfax. In 2021, GKS revenue amounted to 4.3 billion rubles, net profit – 2.3 billion rubles. (data for 2022 were not disclosed).

GKS provides, in fact, one basic service – Internet access via satellite channels for corporate clients, government agencies and individuals, explains Leonid Konik, editor-in-chief of ComNews. “As a result of the hostilities, many infrastructure facilities in the regions were damaged, so satellite communications became the preferred mode of communication,” he explains.

Obtaining licenses to work in new regions is a standard bureaucratic procedure, and the possibility of working in the annexed territories will depend on how extensive the coverage area of ​​GCS satellites is, says Sergey Pekhterev, shareholder of Ka-Internet. According to his estimates, two or three GCS satellites cover a significant part of the European continent and, accordingly, the territory of these regions.

For terrestrial telecom operators, working in new regions creates significant risks due to the danger of not only damage, but also the capture of infrastructure by the enemy, Konik continues. “Satellite communications are preferable in terms of minimizing risks: the satellite is at an altitude of 35,000 km, and on the ground there is only a subscriber station – a receiving terminal, which is inexpensive,” he explained.

“If the terrestrial infrastructure is disrupted in the regions, then the GCS services will help improve the state of communication and provide residents with access to the Internet, instant messengers, social networks, provide telephone communications, etc. In the case of simple subscriber satellite terminals, additional infrastructure will not be required. This is a convenient option in case of problems with fiber optic communications or cell towers,” says Pekhterev.

Also, St. Petersburg operators Molniya and Aurora Telecom and the Crimean company Mirtelecom received licenses to provide communication services in new regions, a source in the communications industry told Vedomosti. Representatives of local providers interviewed by the publication said that they knew nothing about the work of these companies, except for Mirtelecom. Based on the statements of these legal entities, the RKN made changes to the register of licenses in the field of communications, which resulted in the opportunity for companies to work on the territory of new subjects of the Russian Federation, the representative of the department explained.

Vedomosti sent inquiries to representatives of Mirtelecom and Aurora Telecom. It was not possible to contact the representative of “Lightning”.

Taking into account the needs of Novorossiya in a guaranteed quality service in the field of broadband mobile Internet and cellular communications, the emergence of such an operator as Mirtelecom will allow stabilizing social tension while providing communications to the population, Viktor Yatsenko, ex-Minister of Communications of the DPR, believes. At the moment, there is a shortage of competent employees in the DPR and LPR and there are problems with the purchase of the necessary equipment for the development of networks. Therefore, an operator is needed who will develop backbone and mobile communications, Yatsenko points out.

The telecom markets of the DPR and LPR are quite saturated and obtaining licenses for the provision of communication services does not mean at all that companies will physically start building their networks there, says Dmitry Galushko, CEO of the consulting company Ordercom. The situation in the Zaporizhia and Kherson regions in the conditions of the Northern Military District is much more complicated, he explains. Obtaining a license is quite simple, since there is no state duty, Galushko continues. According to him, it is enough for the company to submit an electronic application in the personal account on the RKN website and the body will consider the application and issue an opinion within 20 working days. Martial law operates in the new territories, and for real work, financial investments are needed in infrastructure, employees, an advertising campaign to attract subscribers, and so on, he lists. Therefore, companies cannot enter new regions without administrative resources, Galushko concludes.