RTK-Electra

Company

Electrical and Microelectronics
Russia

Owners:
Rostelecom
RoTeK NPC

Content

2023
- Due to mega-orders from Rostelecom, Elektra routers approached Chinese at a price
- Report on the production of surveillance cameras and telecom equipment
Notes

Owners

+ Government of the Russian Federation

+ Vympelkom, JSC

+ Vnesheconombank

+ Deposit Insurance Agency (DIA)

+ RoTeK NPC

A joint venture between Rostelecom and Rotek, a Russian developer of service platforms and a manufacturer of network infrastructure equipment, subscriber equipment, a supplier and system integrator of technical solutions for creating intelligent systems in power, housing and communal services and industry. The company has a full product development cycle, and there is its own production in the Russian Federation.

2023

Due to mega-orders from Rostelecom, Elektra routers approached Chinese at a price

Due to the large volumes of orders under forward contracts from the anchor customer, Rostelecom, the Russian equipment manufacturer Electra was able to minimize the gap in the cost of its routers with the Chinese. Alesya Berdnikovich, director of the import substitution department of Electra, announced this on October 12 at the demodna of the Mobile Communications and Fixed Communications industrial competence centers (ICC). According to her, now, with the current production volumes for Rostelecom, their products are more expensive than Chinese by no more than 10%, while previously the difference in cost was about 40%.

As part of the implementation of particularly significant projects selected through the Fixed Communications IC, Rostelecom signed forward contracts with its sister company Elektra (a joint venture of Rostelecom and Rotek) for the supply of hundreds of thousands of devices in 2023-2024, such as routers, set-top boxes and IP cameras. The main volume falls on routers - 800 thousand pieces. We are talking about two types of devices: FTTB CPE routers and GPON ONT.

The total cost of two particularly significant projects for the development and implementation of these routers is more than 2.7 billion rubles, the data were cited by Electra. And collectively, the company implements five particularly significant projects. For more information about all of them, see here. What is the cost of contracts with Rostelecom directly, Electra does not report.

Particularly significant projects that are being implemented by the joint venture Rostelecom and Rotek (from the presentation of Electra representatives on demodna)

According to the results of the implementation of even our current forward contract, concluded only for two years, we will get to the point of being no more expensive than our Chinese counterparts, "Alesya Berdnikovich said on demodna.

The representative of Elektra says that the task is to enable Rostelecom in the future to seamlessly switch to new generation routers without raising the cost. New technical solutions with new chips are expected by mid-2024. They have already been tested and are ready for a mass launch, says an Electra spokesman.

We think that with the transition to Wi-Fi 6, while maintaining such volumes of long-term guaranteed orders, we will be able to not increase the cost of the solution for operators, that is, it will be a new generation router, but at a price lower than the Chinese one, - said the director of the import substitution department of Electra.

In the case of the production of such devices, the price is very sensitive to scale. The price comparable to the Chinese can be achieved with production volumes of about 100 thousand devices per month, according to Electra.

Russian manufacturers have never supplied routers in such volumes before and have not had the opportunity to achieve competitive prices compared to Chinese counterparts, says Alesya Berdnikovich. At the same time, as the company notes, in 2023 the number of Russian manufacturers on the market increased markedly, and competition is growing at a high pace, and in all classes of subscriber equipment.

Elektra says it is ready to continue investing in the development of its technologies and the improvement of production. In 2023, for example, the company mastered such technological operations as calibration of chipsets, programming Wi-Fi chipsets.

We are able to increase technological capabilities thanks to the volumes that, finally, have begun to reach us, "says Alesya Berdnikovich.

Large supplies also allow in advance and in large volumes to wholesale purchase the component base, loading the capacities of domestic microelectronics manufacturers. Electra, in particular, has signed a long-term contract with Micron, and about 300 thousand Russian integrated circuits have already been purchased, and in total the contract provides for the purchase of 800 thousand units per year.

In addition to Rostelecom, other major telecom operators are eyeing the company. At the same time, for example, the presence of "global ambitions" - export plans from the supplier - plays a role for Megafon.

For us, Russian operators, it is important to understand that this is not just import substitution and the opportunity to occupy some segment of the market, because the state has created a regulatory framework, and that these are people with ambitions to enter the international market, show the class there, give competitive solutions and, including, The price, which is competitive all over the world, was noted at demodna by the director of government relations of MegaFon Vladimir Mesropyan.

Yadro, for example, has ambitions to stand on a par with the three world manufacturers of base stations, he recalled. And Megafon also goes to different markets, it needs this equipment not only domestically. NTC Proteus, to which Megafon also cooperates, also works on the international market.

Alesya Berdnikovich in response to this claims that their company is also beginning to actively move to foreign markets, primarily in the near abroad, where the needs and requirements of local telecom operators largely echo Russian ones.

Report on the production of surveillance cameras and telecom equipment

On April 13, 2023, Rostelecom announced the launch of its own video surveillance cameras and telecommunications equipment. Subsidiaries - Elektra and RTT in St. Petersburg and Moscow will be engaged in the production of this device, said Mikhail Oseevsky, president of Rostelecom.

In the next two months, we will launch two plants - these are our subsidiaries, which will produce both cameras and other types of equipment. We will not turn into a very large one yet, but still already a manufacturer. Although according to plans, this is millions of pieces over the next few years, "he said at one of the conferences on April 13, 2023.

Rostelecom announced the launch of production of its own video surveillance cameras and telecommunications equipment

In addition to CCTV cameras, Rostelecom plans to produce new-class home Wi-Fi routers, various communicators and controllers, Oseevsky told reporters on the sidelines of the forum. At the same time, he did not disclose the details of the project, including the volume of investments in it.

There is a separate task for components. But the government is making powerful efforts here. Therefore, we also understand what track we will move, - said the head of Rostelecom.

Behind all this is quite a large cooperation between suppliers and manufacturers of individual elements and parts. Therefore, in the next two years, I think that the level of import substitution in this part will be at the level of 90%, - added Oseevsky.

In January 2023, Ministry of Digital Development presented the roadmap "New Industrial Software," according to which mass production of Internet routers of the modern Wi-Fi 6 standard may start in Russia by the end of 2024.

The document says that the mass introduction of devices is planned in 2023-2024. It is planned to ship at least 500 thousand devices to customers, and Rostelecom and ER-Telecom Holding are called potential buyers in the document. ^[1]

Notes

↑ "Rostelecom" will launch the production of surveillance cameras and other telecom equipment

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