Three of the largest international satellite equipment manufacturers – Hughes, ViaSat and Newtec are competing for the right to participate in a Russian state project to provide high-speed access to information networks via satellite to remote regions of Russia.
The proposed plan comes from the Russian Ministry of Communications and Mass Media to provide people living in remote areas of the country with Internet and television. It is assumed that subscribers will use a VSAT satellite dish and decoder device. The device is expected to cost subscribers 8,000 rubles. Partner companies must be willing to transfer technology and launch VSAT-dish and decoder production plants in Russia.
Cooperation with the selected company could start as soon as Q1 2011. A main component of any such partnership included in the agreement drawn up by the government includes the willingness of the strategic partner to transfer satellite technology to Russia.
“Closing the digital gap among across the Russian population is possible only through satellite technology. This is the only means of increasing Internet penetration up to 50%,” says iKS-Consulting analyst Konstantin Ankilov.
According to Russian business daily RBC, the project operator might be RTComm.RU, a subsidiary of Rostelecom, Russia’s national telecommunications operator. The total investment required for the project is estimated at about 30 billion rubles, of which the federal government will allocate 4.2 billion rubles.
To attract investment, the project operator will need to involve a market partner with a proven track record. In the opinion of market participants, this might explain the decision to attract foreign partners even more than the need for advanced technology.
Source: RBC Daily, iKS-Consulting
