Sunday, November 16, 2014

Synopses. Alexander Provorotov of program development 3G / LTE Tele2 in Russia – MForum.ru

Tele2 announced the launch of 3G mobile internet in St. Petersburg. Meeting with the media and bloggers opened by Director of Corporate Communications Tele2 Cyril Alyavdin. After his brief introduction to gathered deputy. General Director Alexander Provorotov Tele2.

UP : St.Petersburg became the first city where Tele2 launches high-speed mobile Internet 3G. This was possible thanks to the alliance of companies Tele2 and Rostelecom, united mobile assets, which enables us to provide services to the mobile Internet and voice services virtually nationwide. Launch of 3G support is certainly one of the steps towards the creation of a full-fledged mobile operator. Next, there will be other steps.

We are facing a difficult task in the shortest time to merge the assets that gave us Rostelecom. From the point of view of the complexity of the problem, in terms of the time in which we want to do it, it’s the most difficult thing that happened in the Russian telecommunications market in the last year. It should be noted that not only the subscribers of Tele2 in St. Petersburg got the opportunity to use 3G, but callers Rostelecom, which were at Rostelecom in St. Petersburg. Now they can use the network 3G Tele2. Thus, the quality of service for these customers increased.

The Importance launch 3G network for Tele2 is difficult to overestimate. As I said, over the years the company expected the event. Now we hope that Tele2 is no obstacle to the further development of both the federal mobile operator. With all the advantages of Tele2 will stay with us – it’s plain and simple tariffs, lower prices in comparison to our competitors. Absence of Stars and other hidden conditions.

I think many are wondering and would like to get a response from us to the question – “Why are launching 3G, not 4G”? Certainly, we know where to go modern information market. At the same time, we must look at our customer base. We believe that at least another year nskolko 3G technology is the core technology for networks of mobile voice and internet. And if you look at the penetration of 3G ustrosytv in our network, it is more than 30%. In this case more than 38% of subscribers in our network using the Mobile Internet Technology EDGE.

Now, when we change, in essence, EDGE on 3G, these people certainly grow speed will increase the quality of services.

Note. AB: In St.Petersburg Tele2 launched 3G / DC-HSPA + (up to 42 Mbit / s). Actual download speeds today reach about 7-9 Mbit / s – the result of a very decent 3G.

UP : As a federal operator we certainly focused on the mass market. We believe that now is the moment when we must first provide the most massively popular services of mobile Internet access, ie 3G. Certainly in our future plans include a network 4G / LTE.

As I mentioned, we have been preparing for the first run. As I mentioned, this is a first step, then the process will go faster. In particular, the 2014 launch of 3G network in three regions: in Chelyabinsk, Tambov and Novosibirsk.

We have very ambitious plans for 2015. More than 50 3G networks are planned. Which will talk about covering more than half of the territory of the Russian Federation.

AB: I would venture to suggest that it is still covering more than half of Russian regions, or on the coverage of more than 50% of the population. However, it was said just about cover more than half of the territory.

UP : At the end of 2016, 3G coverage will be provided in all regions of Tele2 in Russia.

What are our plans for the technology LTE? Already in 2014 we will launch LTE network in Tula. We start it with the application of the principle of technological neutrality, ie it will be LTE network in 1800.

Why we are launching this year only one LTE network in 1800? Build a network – it’s not the most simple and quick affair, especially if you do it well. In 2015, we will launch more than 20 networks 4G / LTE, as with the principle of technological neutrality at 1800 MHz, and at frequencies that Tele2 has received from Rostelecom. It is primarily the range 2.5-2.7 GHz. There, too, we will build a network, perform the licensing requirements, provide services, etc. All, as I said, will be more than 20 regions with LTE at Tele2 the end of 2015.

Of course, we understand that the LTE network is now in demand especially in big cities. Because penetration of subscriber devices that support LTE yet not so large as capable devices 2G / 3G. And somewhere in the next five years, we believe that this situation will persist. Only after this device to support LTE will dominate the market.

As the operator, aimed at the mass market, we do not want to introduce some pretty innovative services that will benefit small customers, We want our service has been used as many subscribers. So while the focus on 3G, but also about the LTE will not forget.

The penetration of devices with support for LTE in Russia today that while about 5%. This is an illustration of why we plan to primarily run the network 3G. And only in summer 2014 we plan to launch LTE in St. Petersburg.

Another question that many, probably interested. This question about investments. Certainly, building networks of 3G / LTE will require considerable investment company. We operate the volume of capital construction program on 2015-2018 years. In the near future we plan to build more than 80,000 base stations across the country that will make our network of parity with the networks of our competitors. It is important to note that this is the most ambitious project of building networks in recent years. Our esteemed competitors evolved over a much longer time, gradually invested gradually built. We do not have such an opportunity, wait for us, no one will, so the next few years we have planned a major investment program.

AB: Mr. Provatorov not name the amount of investment in the project 3G / LTE company Tele2. My rough estimate of the necessary expenditure on the development of a network – $ 1-2 billion in the next 2 years.

UP : As networks run 3G / LTE, we certainly expect growth in data transmission. I think that everyone can see that the main driver of revenue growth of mobile operators in Russia and in the world is the transfer of data. For us this is an important point. Tele2 always grew faster than the market in recent years. The company had in fact only voice services and EDGE, as the technology of mobile access to the Internet. Now, when we run the network 3G / LTE-related restrictions will be gone. We look forward not only to existing subscribers that they will use the mobile Internet 3G / LTE and bring the company additional revenue. We certainly look forward to new subscribers as well know that one of the reasons that subscribers are not connected to Tele2, and choose between other operators, was the lack of high-speed mobile Internet access. Now, this problem will not. And considering that this year in Russia runs MNP (service “number portability”), we are confident that the subscribers have more choice – which of the four federal operators connect. Height coverage 3G / LTE Tele2 will be a good stimulus for the growth of the subscriber base of our company.

By the way, speaking of MNP, we now have a ratio of about 50-50, ie about the same number of subscribers has gone from us to other operators, and has come to us from these operators. We believe that the launch of high-speed mobile internet access in our core regions allow this ratio to change in our favor.

A few important points. Tele2 – a company which pays great attention to the quality of service to its subscribers. And there are some criteria that are important to us. This PLP (price leadership perseption), ie in fact it is the perception of the operator, as the cheapest. By this criterion Tele2 always remained the leader of the Russian market by a wide margin from competitors. Running fast mobile Internet should not change this ratio. We still want to provide the best prices, the most competitive rates.

The second figure illustrates the desire of our customers to connect to one or the other mobile operators. In this, in recent years we have also consistently remain a leader. It is very important to maintain our leadership in this indicator. Above this, we will certainly work. I think that we can say that the launch of high-speed mobile Internet will help us in maintaining the leadership on this parameter, too.

We are confident in the correctness of the strategy used Tele2 in recent years. We discounter operator, alternative mobile operator. We are in this different and intend to remain the same.

Once again I want to congratulate all the subscribers of Tele2 in St. Petersburg, and soon in other parts of the launch of high-speed mobile Internet . It really is a great event for us. Thank you!

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