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RTK - Rostelecom Network Technologies - Network Technologies

Company

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Owners:
Nokia Corporation - 49%
Rostelecom - 51%

Owners

RTK - Network Technologies LLC is a joint venture of PJSC Rostelecom and Nokia, the main area of ​ ​ activity of which is the creation of a portfolio of high-tech network solutions based on the technologies of the world technological leader of Nokia in integration with advanced domestic developments.

The portfolio of joint venture products and services enables customers to offer comprehensive solutions for the backbone network infrastructure of telecom operators, data center network management, corporate network virtualization, the Internet of Things and next-generation mobile communication networks.

History

2023: Nokia curtails its participation in the joint venture with Rostelecom, but does not abandon Russians without support

Nokia is gradually curtailing its participation in a joint venture with Rostelecom as it leaves the Russian market. This follows from the company's annual report on form 20-F, published in early March 2023[1]. There are agreements to gradually reduce the activity of the joint venture and withdraw from its capital, or completely liquidate the enterprise. In the latter case, it would be necessary to first obtain the necessary regulatory approvals. Read more here.

2019

"Rostelecom" and Nokia have identified the priorities of the joint venture

"As part of the St. Petersburg International Economic Forum, which was held from June 6 to 8, 2019, a memorandum of cooperation was signed between PJSC Rostelecom and Nokia. The document was signed by Mikhail Oseevsky, president of PJSC Rostelecom, and Jan Van Tetering, senior vice president of Nokia Nokia in the Europe region.

The signed agreement provides for interaction in the implementation of the Digital Economy of the Russian Federation program, as well as the possibility of creating, adapting and developing domestic technologies for mobile and fixed communication networks using Nokia innovations.

In addition, the companies agreed on the possibility of creating a laboratory and a research and development (R&D) center on the basis of a joint venture for the development of new technologies, the further use of developments in the interests of Rostelecom, as well as its customers in the segment of corporate users.

The joint venture between Rostelecom and Nokia will become the basis for the formation of a Russian supplier of advanced network technologies and cloud solutions.

Obtaining rights to Nokia technologies

On May 7, 2019, it became known that Nokia would transfer the rights to its technologies to a Russian company for the first time. Access to intellectual property and source codes of some types of telecommunications equipment Nokia will receive "RTK-Network Technologies" - a joint venture of Nokia with Rostelecom.

As RBC writes with reference to the materials of the RTK-Network Technologies company, the production of equipment will be localized in Russia in the future. What kind of developments are in question is unknown. Rostelecom and RTK-Network Technologies declined to comment, Nokia did not respond to a request from the publication.

Nokia will transfer the rights to its technologies to the Russian company for the first time
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A company that transfers intellectual property rights to any development becomes the full owner of this technology: all rights to patents, know-how and source codes are transferred to it, "says Kirill Mityagin, partner at Nevsky IP Law.
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According to him, Nokia is taking this step to increase the value of the assets of the Russian company, as well as compliance with domestic legislation in the field of import substitution, since after the transfer of such rights, the technology, in fact, will become Russian.

Ivan Pokrovsky, general director of the Association of Developers and Manufacturers of Electronics, believes that by obtaining intellectual property rights, Rostelecom will be able to supply Nokia equipment as Russian, and the Finnish company, in turn, will consolidate its position in the market, fixing the status of its technologies.

Pokrovsky also added that in order to assign the equipment the status of a domestic joint venture, it will be necessary to prove not only legal control by Rostelecom, but also the opportunity to develop the technologies received from Nokia.

RTK-Network Technologies in the future intend to achieve the status of "telecommunications equipment of Russian origin" for their products, which is assigned by the relevant commission under the Ministry of Industry and Trade.[2]

2018: Building a company

On September 24, 2018, it became known about the creation of joint ventures between Rostelecom and Nokia - RTK - Network Technologies. It will focus on the production of software and equipment for communication networks in the context of the import substitution policy. The basis for development will be Nokia technologies and domestic solutions.

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We are creating a full-fledged Russian manufacturer of software and equipment for networks. So far, there are only foreign players in this market. Thus, we are solving the global strategic task of import substitution. These technologies will primarily be in demand by Rostelecom itself, and other large state corporations are showing interest, "Alexander Aivazov, vice president for business development at Rostelecom, told Kommersant .
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Rostelecom and Nokia have created a manufacturer of software and equipment for operators

RTK - Network Technologies will deal with projects in the field of backbone network infrastructure of telecom operators, network management of data centers, virtualization of corporate networks, the Internet of Things and next-generation mobile communication networks.

Nokia is ready to invest up to 10 billion rubles in the joint venture in 2019-2022, Rostelecom told the newspaper. The funds will go to product development, as well as investments in Russian technology companies. The authorized capital of the company is 100 million rubles.

Anton Shulga, Deloitte partner in the CIS, believes that Nokia's experience and technologies can be useful to Rostelecom for localizing the production of equipment and software. Many operators have no choice but to develop new markets. Rostelecom has already made attempts to master the field of external innovation through strategic acquisitions and a corporate venture capital fund, and the deal with Nokia seems to be another step in this direction, Shulga said.[3]

Notes