The Ministry wants to transfer the spectrum to a newly-established state-owned company. The plan would see frequencies in the 720-750 MHz and 761-862 MHz bands and all later released frequencies in the 390-470 MHz and 694-876 MHz bands used by the Ministry in order to develop broadband services and reduce digital exclusion. Access to a single state LTE infrastructure would be offered to all operators under regulated rates.
The Ministry proposes to capitalise the new company through spectrum fees charged operators and allocations from the universal communications reserve fund. The fund collects 1.2 percent of annual operator revenues as a tax. The Ministry expects the investment in the LTE infrastructure will total RUB 60 billion, based on around 30,000 LTE base stations to be built.
Over half the spectrum concerned was allocated to operators Rostelecom, MTS, Megafon and Beeline in tenders last year. But the ministry said the operators have progressed too slowly on roll-out, not using all the spectrum they have, covering only large cities and duplicating each other's networks. It acknowledged that operators would receive compensation if the state project goes ahead.
