MTS and Ericsson prolonged the contract of development of a 5G network for 1.82 billion euros

2016: MTS and Ericsson prolonged the contract of development of a 5G network for 1.82 billion euros

In June, 2016 PJSC MTS and Ericsson announced signing at the XX St. Petersburg International Economic Forum of the delivery agreement of the software for upgrade of MTS network till 2019 within which the companies will be able to implement technological solutions of Internet of Things (IoT) of networks of fifth generation (5G) — to test the technology of expanded GSM (EC-GSM-IoT) ensuring functioning of M2M-devices on already existing MTS networks. Also the companies prolonged for three years the existing contract on development of networks under which the total amount of purchases of MTS of products and services of Ericsson from 2008 to 2019 can be 1.82 billion euros with the accruing result.

Development of Internet of Things

The EC-GSM-IoT technology significantly accelerates and reduces the price of deployment of an ecosystem of Internet of Things. Thanks to more economical use of a frequency range the new radio interface allows to increase repeatedly the number of the M2M-devices working in network, and due to growth of sensitivity of radio modules — to expand a range of devices seven times and to reduce their energy consumption.

"MTS considers the possibility of use of different perspective technologies for Internet of Things including EC-GSM-IoT. Use of this technology will not demand large-scale replacement of a communication equipment and in most cases it is possible to manage software updating on radio network nodes — the vice president of MTS for purchases and administrative matters Valery Shorzhin noted. — It means that operators have an opportunity to create the IoT environment practically everywhere where there is a covering of GSM, and to connect tens of thousands of devices in an area of coverage of one base station — where present mobile devices do not 'see' a signal. EC-GSM-IoT can be applied in devices which do not require high data transfer rate, but reliability of connection is crucial. These are different sensors, sensors and counters for monitoring systems both in premises, and on open spaces with difficult conditions of passing of a signal".

"By our estimates, the segment of IoT grows at prompt rates and by 2021 more than 16 billion devices will be connected to Internet of Things. Cellular networks are the universal environment for IoT as provide universal access, reliability and security of connections with the licensed frequency range. For large-scale deployment of IoT it is necessary to upgrade mobile networks. We are going to propose to telecom operators the first optimal solution which is repeatedly reducing the price of creation of M2M-products already today — the vice president of Ericsson for business development with telecom operators in the region Northern Europe and Central Asia Jeff Travers noted. — Now EC-GSM-IoT undergoes standardization, and we in cooperation with telecom operators finish this technology to bring it to commercially ready samples in different scopes of application by 2017".

In addition to development of technology of Internet of Things the signed delivery agreement software provides installation of current versions of software and also installation of updates for the operative equipment and future upgrades till 2019 inclusive.

The agreement on supply of equipment

At the XX St. Petersburg International Economic Forum of MTS and Ericsson also prolonged for three years the cooperation agreement existing since 2008 in the field of development of communication networks. The updated agreement provides upgrade 2G/3G of networks and further development of 4G networks in Volga, Northwest, Siberian, Ural and Southern federal districts — supply of equipment of reference network and a radio access network and also service in deployment and technical support for the total amount over 330 million euros. Treaty extension assumes expansion of a range of deliverable solutions and includes, including, delivery of the integrated antenna systems (AIR) and solutions on providing a covering in densely populated urban areas.

The total amount of purchases of MTS of products and services of Ericsson from 2008 to 2019 can be 1.82 billion euros with the accruing result.

2015: Cooperation of MTS and Ericsson

On December 21, 2015 MTS and Ericsson announced the beginning of joint work over creation and implementation of networks of fifth generation in Russia. The companies will test technology on the FIFA World Cup.

According to the message of MTS, within cooperation the operator and Ericsson will be engaged in a research and formation of technical requirements to communication of a 5G. The company intend to test solutions and scenarios of use of networks of new generation and to create on their basis a test zone on football superiority which will pass in 2018. It is supposed that for this technology the frequency range of 15 GHz will be used.^[1]

MTS and Ericsson jointly will start a 5G network in Russia

Testing of solutions of Ericsson in  pilot projects on  MTS network will begin in  2016. Project implementation of LTE-U (LTE Unlicensed)/LAA (Licensed-Assisted Access) on use of the LTE radio interface in not licensed frequency range of 5 GHz jointly with Wi-Fi access points is planned for this time.

"Such work on advancing will allow to be ready to construction of essentially new network which will cardinally change our life by the time of standardization of a 5G and will be effectively used in life, study, medicine, science, the transport industry, in show business and in many other spheres" — the vice president of MTS for the equipment and IT Andrey Ushatsky reported.

Also MTS and Ericsson will conduct "joint dialogue" with  the Russian regulator  concerning use of a frequency range for  a 5G. Commercial start of a 5G in Russia of MTS can take place in  2019-2020, but   not earlier, than  the corresponding standard will be developed, Ushatsky noted.

Theoretically 5G networks can provide data transmission at a speed up to 10 Gbit per second that by 30 times exceeds opportunities 4G. According to plans of the International Telecommunication Union, the standard will be implemented by 2020.

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