Fiber-optic communication provider TTK will launch a mobile virtual network operator (MVNO) to serve its main shareholder, the state owned Russian railways (RZD). By using its backbone network for mobile data traffic, TTK intends to get discounts from mobile operators. The project is being discussed with the three leading Russian mobile operators: MTS, VimpelCom and MegaFon.
TTK currently operates and services the largest fiber-optic communication network in Russia. Laid alongside the railways, the network is longer than 53,000 km, has a network capacity of 560 Gbit/s, has more than 1,000 access nodes in all regions of Russia, and connects to Europe and Asia. The company is one of three leading alternative operators of fixed communications.
As of October 1, 2010, RZD (excluding subsidiaries and affiliated companies) had 980,300 employees. If only the company personnel should become TTK MVNO clients, the company will be the largest virtual operator in Russia.
According to analysts, TTK investment in the new project will not exceed $10 million. With average monthly revenue per user amounting to 300 rubles (approximately $10) per month, the MVNO’s annual revenues could exceed $100 million. TTK will keep from 40 to 70% of this revenue.
At present, there are roughly 15 MVNOs in Russia. According to analysts, altogether they service approximately 600,000 subscribers.
Source: Vedomosti
