Telecom operators are against creating an IoT network at Rostelecom frequencies

MTS, VimpelCom and MegaFon appealed to the Ministry of Energy with a request to reconsider the idea of ​​​​creating a federal network in the 450 MHz band for transmitting data from housing and communal services meters and other devices. This range is occupied by Tele2, controlled by Rostelecom, which threatens to monopolize the market and increase prices for IoT (Internet of Things) services. In total, the project, according to Kommersant, will require about 100 billion rubles. until 2030, including 73.35 billion rubles. from the state budget. But experts warn that both the time frame and the cost could rise significantly.

Kommersant got acquainted with the letter from MTS, VimpelCom and MegaFon to the Minister of Energy Nikolai Shulginov dated November 10. Companies are asking to reconsider the idea of ​​​​creating a federal network for transmitting Internet of things data (Internet of things, IoT – data transfer between objects equipped with built-in means for interacting with each other) in the 450 MHz range, expressed by the Data Transmission Networks working group within development of the national project “Data Economy”. Operators are turning to the Ministry of Energy because it is participating in the development of the action plan “Digitalization and automation of data collection in housing and communal services and the fuel and energy sector based on LTE450” within the framework of the national project.

The letter states that in most regions of the Russian Federation, radio frequencies in the 450 MHz range are allocated to one operator, so the implementation of the project will lead to a monopolization of the data transmission market for the fuel and energy sector and housing and communal services, and the lack of competition will negatively affect the quality of services. Also, the construction of such an LTE network will require significant capital investments and a long time frame. According to preliminary estimates, the budget funding provided for by the Data Economy project is 73.35 billion rubles. “It will not be enough for such a large-scale goal,” operators say.

The Ministry of Digital Development told Kommersant that this initiative is not being discussed there. The Ministry of Energy told Kommersant that the request from the operators has not yet been received. The ministry added that they are working within the framework of a project to “organize a technological data transmission network and a data management system for engineering networks.”

MTS said that operators have already built networks of the LTE NB-IoT standard in the ranges from 600 MHz to 2.6 GHz: “Changing the parameters will require significant investments, including budgetary funds, and may limit competition in this market segment.” The company believes that the networks available to operators are sufficient for effective use. VimpelCom and MegaFon confirmed the sending of the letter, refusing to comment.

The only mobile operator in Russia that provides services based on LTE-450 is Tele2 (owned by Rostelecom). The 450 MHz band originally belonged to Skylink, which was bought by Tele2, explains Alexey Slukin, editor of the Telekommunalka Telegram channel. The band has lower data rates than higher frequencies, but has a longer range, he said. “Using 450 MHz as the only one will lead to additional costs for operators’ equipment and benefits for Rostelecom,” says Mr. Slukin.

Rostelecom told Kommersant that the company is ready to consider participating in the project, including using the capabilities of LTE-450: “Now the project is at the initial stage of discussion and development, many details are simply not there.”

Under monopoly conditions, it is difficult to determine the optimal price range that would take into account the cost and necessary investments to update and develop the network, notes one of Kommersant’s interlocutors among telecom equipment manufacturers. In his opinion, the project could lead to higher prices for services for consumers.

Another Kommersant interlocutor among the developers of IoT systems says that it is planned to allocate more than 100 billion rubles to the creation of a single federal operator of the technological data network in 2025–2030, of which 73.35 billion rubles. from the federal budget and another 34.98 billion rubles – extra-budgetary funding. However, according to him, the construction of an autonomous network will require more funds, and “the implementation time will increase manifold.”

Timofey Kornev