Nokia Corporation has reportedly partnered with YADRO to construct 4G and 5G telecom base stations in Russia. This move comes as the deadline for developing only Russia-made network approaches.
Russia stated that it will extend the license for the telecom operators beyond 2023 for long-term evolution (LTE) networks on the condition that they should build networks by exclusively using Russian equipment. This is Moscow’s push for promoting domestic IT and technology services.
Nokia said in a statement that the company is delighted to collaborate with YADRO which is a leading Russian tech producer and developer of high-performance storage as well as server systems to acknowledge the country’s new regulatory framework.
The two companies had inked a term sheet on November 23, specifying their intention to foray into favorable negotiations to create a joint venture in Russia. Although the duo did not reveal the planned investment terms, reports suggest that YADRO would hold a stake of 51% in the joint venture whereas Nokia would take the remaining 49% stake.
Denis Manturov, the Industry and Trade Minister of Russia cited that the agreement between YADRO and Nokia would allow for considerable development of the telecom equipment in the country, with construction slated to commence this December.
Currently, Russian manufacturers hold 21% of the USD 2.26 billion of the contracts of state telecoms equipment procurement. Manturov added that the whole market is expected at over USD 5.3 billion, which is why the government sees serious potential for the development of localized collaborative projects in the country.
According to recent reports, other foreign vendors like Ericsson, ZTE, and Huawei have also showcased an interest in localizing equipment.
In other news, Indian telecom giant Bharti Airtel has announced to have concluded its first 5G trial in the 700 MHz spectrum band through a partnership with Nokia. The demonstration took place near Kolkata and is the first 5G trial in eastern India.
Source credits:
