RUSSIAN TELECOM AND SANCTIONS
Source：fontanka.ru
From：Taiwan Trade Center, Moscow
Update Time：2022/04/28
The fifth package of EU sanctions prohibits the supply to Russia of technologies for civilian communications networks that are the property of an organization controlled by the state or with more than 50% state ownership. This was reported by Kommersant on April 11. According to experts, despite the growing policy of import substitution, companies will not be able to replace some of the European solutions.
According to the publication, the transfer of technology to state-owned telecommunications companies turned out to be completely frozen. The restriction will affect the special purpose network used for state needs, as well as the communication network of operators with predominant state participation.
On March 21, the government warned that technological communication networks of railway transport could suffer due to the termination of the supply of telecom equipment and microelectronics by Western manufacturers to Russia.
The largest European suppliers of equipment for mobile communication networks in Russia have traditionally been Swedish Ericsson and Finnish Nokia. Their market share, according to sources, reached 20% and 30-40%, respectively. However, in recent years, their presence has gradually decreased under pressure from Chinese Huawei. After the start of the special operation in Ukraine, Ericsson and Nokia suspended their work in the Russian Federation.
According to the Association of Developers and Manufacturers of Electronics, the annual sales of telecom equipment in the Russian market is more than $4 billion, while the domestic market accounts for no more than $780 million.
The largest customer of Russian equipment among telecom operators, according to ARPE, is Rostelecom. This is due to the fact that the company is under state control. Therefore, it is subject to the requirement of 223-FZ for priority purchases of Russian equipment.
According to the interlocutor of the publication, about 100 enterprises produce Russian equipment for communication networks in Russia, but they are now dependent on the supply of components, which has not yet resumed. The ban on the supply of technologies for communication networks from the EU, he added, may affect the mobile networks controlled by Rostelecom Tele2. However, given that Tele2 was the last of all operators to update networks in the regions, its position is more advantageous.
Source: https://www.fontanka.ru/2022/04/11/71247107/