St Petersburg start-up Summa Telecom is to build a WiMAX voice and data network across Russia, having won a national 2.5GHz license last November.
Since Summa was virtually unknown, it was widely assumed that it would merely buy the spectrum as an asset to be sold on later, but in fact it has also gained licenses for data transmission and IP telephony, which place significant roll-out obligations on the holder.
Summa must construct and use its network for the licensed purposes within two years. Its spokesperson Igor Ryabov said that the company intends to build a WiMAX network ‘on which services of telephony will be rendered, including access to internet and TV”, and it is currently preparing a business plan with assistance from Deutsche Telekom Consulting.
Summa Telecom is owned by Russian businessman Ziyavudinu Magomedov, whose principal businesses include oil transport logistics and metals. According to financial newspaper Vedomosti, Summa was acquired by Magomedov in February 2006, when its only business was building fiber optic networks.
The company also began a test project at the end of 2006 to construct a DSL network in neighboring Dagestan, geared to schools access, and this will be supplemented with Wi- MAX. It expects to cooperate with incumbent fixed line operator Dagsvyazinform, a subsidiary of Russia’s Svyazinvest, on the 802.16 roll-out, which will start this quarter. Summa will need to raise an estimated $1bn if it is to build out its national spectrum plus Dagestan.
It said last week that it had formed a partnership with NextNet, the Motorola unit acquired from Clearwire last year, but there are no details of terms. Many established telcos in Russia are still waiting to be granted licenses for 2.5GHz spectrum. Each of the main GSM operators has applied but so far, Vimpelcom and Megafon have only received 3.5GHz licenses, while Comstar-UTS and Synterra have 2.5GHz.
The issue is particularly critical to Megafon, since it is considering using WiMAX not just for broadband access but also as an alternative to 3G. General director Alexey Nichiporenko told reporters that ‘the Russian market of telecommunications has an opportunity to avoid the mistakes made by European operators, which have yet to pay off till now.’
While Nichiporenko expressed his readiness to participate in an auction of 3G licenses, he said ‘but if it will turn out, that a serious investment is required’we shall search for other opportunities”, and said WiMAX was the most likely. In the municipal market, Synterra has begun to work with the Department of Transport in Moscow to deploy a WiMAX solution that aids in the management of traffic.
The project will entail testing the operation of an automated traffic control system in Moscow, with wireless broadband connectivity between roadside sensors enabled by WiMAX. Synterra will use its WiMAX network to connect eight traffic monitors to the central traffic management system along 7.5 kilometers of highway in one of the most heavily traversed roads in Moscow, which suffers some of the worst traffic congestion of any city in the world. The new traffic control system will soon cover all highways around Moscow, and will analyse basic traffic flow, manage traffic lights, and even search for stolen vehicles.