MOSCOW—Russia is planning to issue a maximum of four third-generation (3G) Universal Mobile Telecommunications System (UMTS) licenses, but that will not happen earlier than 2003.
“From the point of view of economic laws, the optimal number of 3G licenses for one country does not exceed four,” said Communications Minister Leonid Reiman. He added the licenses should not be issued all at once, but in intervals to promote competition.
Initially, the Communications Ministry planned to grant 3G licenses in 2001, but changed its mind after Western European carriers encountered major problems over the issue.
“The fact that Russia has not issued a single 3G license is a big advantage. The countries that have already issued such licenses are encountering major political and economic problems,” the minister said.
He made it clear that 3G licenses will not be issued in Russia this year. Reiman said his ministry planned to finally decide on the rules of 3G network introduction by the end of 2002. “Only after that, one can constructively speak about the beginning of the construction of 3G wireless networks,” the minister said.
The 3G Association, which drafted the basic guidelines for the introduction of the new technology, proposed to tender licenses for the whole Russian territory in contrast to the current practice where they are provided for each of the 89 Russian regions. It also proposed that the price for a license should include the cost of freeing the 2 GHz band from existing communication means. The licenses should be issued for at least 20 years, and networks should be launched 18 months after the frequencies are provided, according to the association.
