MTS entered the capital of New Digital Solutions LLC, a joint venture for the development of 5G in Russia by telecom operators Rostelecom, Megafon and Vimpelcom.
MTS, before other Russian telecom operators, received a license to launch networks of the new 5G standard for Russia. Three other largest mobile operators in the Russian Federation subsequently created New Digital Solutions LLC, which will also develop 5G technologies in Russia, including solving the problem of lack of frequencies on which fifth-generation networks can operate.
„New Digital Solutions” was created in June 2021, all participants have equal shares. Thus, MTS received 25% in the capital of LLC. The companies agreed to test electromagnetic compatibility, explore the possibility of using radio frequency bands for the construction of 5G networks, as well as clearing the spectrum.
“It is likely that MTS joined this joint venture precisely because it is unclear how many frequencies are available for deploying 5G networks in Russia, and it is much easier to do this through a joint venture with other operators. Quotations of MTS shares on the Moscow Exchange today are declining by 0.29%. Apparently, this event, which is certainly of great importance for the Russian telecommunications industry, is not yet of great importance for the stock market, ”comments Natalya Milchakova, a leading analyst at Freedom Finance.
The Ministry of Digital Transformation reported that in November 2021, the State Commission on Radio Frequencies (SCRF) allocated 4.4-4.99 GHz bands to New Digital Solutions for testing 5G technology.