Equipment for LTE networks

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2023

Rostec began deliveries of domestic base stations

The company Range"" ("subsidiary" "") Rostec developed the base stations of the standard LTE and began to supply this equipment to Russian telecom operators. This became known on August 9, 2023. More. here

Beeline is the first among mobile operators to install Russian LTE base stations

On July 20, 2023, it became known that VimpelCom was the first among mobile operators to begin installing Russian LTE base stations. It is assumed that such equipment will help the telecommunications company provide communication to subscribers in rural areas and on highways. Read more here.

2022: Tatarstan halves its plan to launch LTE networks due to lack of equipment

At the end of May 2022, Tatarstan halved its plan to launch LTE networks due to a lack of telecommunications equipment. The shortage arose after the departure of large foreign manufacturers from Russia, including Nokia and Ericsson.

This 2022, it was planned that in 61 settlements we will build an LTE network. This plan has adjusted. It will be in 30 LTE settlements, due to the lack of the necessary equipment. Because of the sanctions, including... It is in terms of the state program for the construction of LTE that a halve is obtained, - the head of the Ministry of Digital Development of the Republic of Tatarstan Airat Khairullin told TASS.

By the end of May 2022, there are 624 small settlements in the region, where it is planned to install high-speed mobile Internet stations within a few years. It is noted that imported 4G equipment can be replaced by domestic one. In particular, it can be produced in Kazan.

I think that some time is needed. Because 4G equipment can be fully produced by Russia itself. Let's say we have a Kazan company... that has a prototype of the production of 4G equipment, "the minister said.

Earlier, Khairullin reported that 2022 villages would be connected to 4G in the region 64 year, and there were 700 settlements in plans for the coming years. The minister in May 2022 announced that by the end of 2022, 83% of the region's residents will use high-speed Internet.

By the end of 2022, the republic is going to build a GPON network - an optical communication channel for 100 thousand households. By May, 20 thousand households were connected to it.

In addition, in 2022, the authorities plan to connect about 100 schools to Wi-Fi, in 2023 - another 900. In total, schools in Tatarstan will cover about 12 thousand points of the wireless Internet network.^[1]

2021

Telecom operators reported problems with the implementation of the concept of "frequency in exchange for import substitution"

From January 1, 2023, operators communications are required to use construction LTE only the equipment included in the network. register of Russian electronics They are also required to use the equipment Russian software included in the network. Until register of domestic software September 8, 2024, operators must provide coverage for all LTE settlements with a population of more than 1000 inhabitants. This became known on November 30, 2021.

In 2022, samples of equipment for 4G networks should appear, which operators must use to update the communication networks already put into operation and build new ones. This is one of the main conditions for renewing licenses for provided frequencies. However, cellular operators faced obstacles in implementing this concept.

The Big Four operators sent an appeal to the Ministry of Digital Development, in which. In particular, it is said that it is impossible to proceed to the stage of field and inter-vendor tests of domestic equipment BS LTE, as well as begin work on planning future sites on domestic equipment and initiate corporate procurement activities. The main problem is the lack of the ability to plan the purchase of equipment, since it is not clear how much it will be and what specifications.

Companies are also afraid of problems associated with the integration of existing software and a new one, on which base stations of Russian production will operate.

According to the Ministry of Industry and Trade, by 2024 at least 10 thousand base stations should be produced in Russia on domestic equipment for the creation of mobile communication networks 5G/IMT-2020 (IMT - International Mobile Telecommunications, international mobile communications). While the development is carried out by the enterprises of the Rostec Group of Companies.

The possibility of Russian companies applying competencies and developing foreign companies to create domestic products is also being considered. Nokia has already decided to localize production. They plan to go along the same path in. Huawei

Huawei President in the Eurasia region Daniel Zhou told RG that the company is negotiating with the government, telecom operators and other partners who will be able to organize the localization of base stations.

By the number of patents for LTE and 5G solutions, Huawei has 20% of the market as of November 2021. First of all, we need to find a local partner who has the necessary competencies. The second stage will be the development of equipment that will suit the requirements of the government and suit operators^[2]

Russian operator banned from installing foreign LTE base stations

In early August 2021, the Minister of Digital Development, Communications and Mass Media of the Russian Federation Maksut Shadayev announced the upcoming ban on the use of foreign base stations in Russian LTE networks.

We have introduced a very strict restriction on the supply, starting from 2023, in the communication network of foreign base stations. In fact, from January 1, 2023, only Russian base stations can be installed on the communication network of our operators, "he said, speaking at a meeting of Russian President Vladimir Putin with members of the government via videoconference.

Operators from 2023 will equip networks with Russian LTE base stations

According to the minister, the Russian authorities agreed with two manufacturers of such equipment to localize production and transfer rights to Russian partners.

Vladimir Putin, in turn, noted that it is necessary to support Russian manufacturers of such equipment and create a competitive environment.

Rostec and AFK Sistema were named possible Russian manufacturers. The first in 2021 has already introduced the R45F station, which supports LTE and LTE Advanced standards, providing access to the 4G network. The authorities are confident that this will reduce the dependence of critical telecommunications infrastructure on foreign manufacturers and sanctions risks, as well as use production opportunities in terms of microelectronics.

In addition, operators will receive state support when covering highways and remote settlements with LTE networks. Officials called the cost of connecting base stations to electricity the main barrier to the development of such infrastructure. According to Maksut Shadayev, sometimes the costs are tens of times higher than the cost of the equipment itself. Now the regions want to instruct to help operators when connecting electricity to socially significant facilities.^[3]

2020: Incredible ways to protect base stations from theft and vandalism used in South Africa

At the end of June 2020, the MyBroadband telecom portal released an article on how mobile network operators in South Africa protect base stations from theft and vandalism.

Theft of batteries from cell sites is the main problem of mobile networks in South Africa. Telecommunications company MTN was even forced to close a number of LTE base stations as battery theft and vandalism led to network congestion. In addition, batteries are used as a backup power supply, which is critical for uninterrupted network operation during power outages.

MyBroadband releases article on how mobile network operators in South Africa protect base stations from theft and vandalism

However, mobile operators try to combat vandals in various ways. For example, Vodacom will enlist the support of locals who protect base stations in remote areas. In addition, the company processes the battery case with a mixture of epoxy resin and glass, turning it into a dangerous weapon. Vodacom is also known to replace traditional lead-acid batteries with lithium-ion batteries that are less attractive to kidnappers. The company cements the rest of the batteries, places them in storage and protects them using geosoning.

MTN has also had some success fighting theft by cooperating with law enforcement. After one of the operations in March 2020, the police arrested seven intruders and returned 55 batteries to the company. In addition, police confiscated four vehicles with tools to break into and steal batteries. And in January 2020, MTN managed to return 143 batteries worth 1.2 million rand (more than $69 thousand). In addition, MTN uses steel cages to store batteries, wraps them in cement, and hides the rest in special "bunkers."

In turn, Cell C installed alarm and video surveillance systems, armed guards and electric fences. Cell C and Rain declined to provide photos to avoid compromising protections.^[4]

2015: Peak sales - $48 billion, forecast for the coming decline

In March 2016, IHS Technology analysts predicted the upcoming fall in the global LTE infrastructure market due to the completion of large projects to deploy fourth-generation networks.

According to IHS, in 2015, global sales of equipment designed to launch cellular networks rose to $48 billion. In October-December, the market volume reached $13 billion, increasing by 3% and 11% in quarterly and annual terms, respectively.

Experts say that in 2015, the mobile infrastructure market grew largely due to the massive deployment of LTE networks in China and to a lesser extent in India. However, the large-scale launch of fourth-generation networks in the Celestial Empire has come to an end, and similar projects in Western and Central Europe are also close to completion.

In this regard, analysts predict the first-ever decline in the LTE equipment market in 2016. Negative dynamics will continue in the future: according to IHS forecasts, in the period from 2015 to 2020, operator costs for hardware solutions for LTE networks will decrease by an average of 13% per year.

At the same time, investment in software for network infrastructure will increase. In 2015, they climbed 17% largely due to the launch of LTE-Advanced networks.

In 2015-2019, the global telecommunications equipment market will fall as opposed to software sales for these solutions, IHS forecast

The research report also states that in 2015, quarterly revenue in the 4G equipment market exceeded the total implementation of 2G and 3G solutions by about $2 billion. By January 2016, 480 commercial LTE networks and 116 LTE-Advanced networks were launched worldwide.

At the end of 2015, Ericsson became the largest manufacturer of equipment for launching mobile networks of all generations. The top three included Huawei and Nokia Networks, followed by ZTE and Alcatel-Lucent. The specialists did not lead the share distribution of vendors.^[5]

2011

Huawei ranks first in the world market with a 50% share

According to the GSA (Global Mobile Supplier Association) LTE Development Report for October 12, 2011, Huawei ranks first in the LTE equipment market with a 50% share. The main market until 2011 was the United States. According to analysts, in 2009, American companies purchased equipment for a total of $90 million, while the market volume amounted to $97 million. In 2011, the cost of deploying LTE networks in the United States will grow to $1.7 billion, amounting to just under half of the global figure of $3.8 billion. By the end of the forecast period, the United States will account for less than 20% of all expenses.

"The transition to fourth-generation (4G) mobile networks, including LTE, cannot happen overnight," said Jagdish Rebello, senior analyst at IHS iSuppli. "Operators have to support many technologies at the same time - in most cases, 2.5G, 3.5G and 4G technologies."

In this regard, the analyst notes, solutions that can make the transition to [LTE] more flexible and less painful are becoming increasingly widespread. Moreover, some suppliers produce equipment that allows you to build an LTE network with any existing infrastructure.

At the same time, operators are trying to approach the formation of tariff plans and network capabilities with greater caution, trying to remove themselves from the model in which they served as a banal intermediary in traffic transmission, says Rebello. The most striking example in this regard is AT&T, which has repeatedly complained that it is not able to serve all iPhone users with high quality.

In order to improve network throughput, companies offer tariff plans, the cost of which depends on the maximum data transfer rate. Ultimately, operators have only one way out, the analyst believes, - the transition to "intelligent" networks, capable of offering guaranteed quality services with less bandwidth.

• IDC: Worldwide LTE cellular infrastructure 2011-2014

• IDC: Worldwide LTE Mobile Phone 2011 – 2014 Forecast (Eng, PDF)

Market growth forecast to $27.9 billion in 2014

The volume of the global carrier equipment market for LTE networks in monetary terms in 2014 will reach $27.9 billion, an increase of 18.6 times compared to 2010, IHS iSuppli predicts. In 2010, the market volume amounted to $1.5 billion.

Russia is trying to organize the production of LTE equipment

The first federal LTE networks were expected in Russia in 2013-2014. According to experts, the construction of each will require at least $2 billion, half of this will go to the purchase of base stations. In 2011, Russia seeks to organize the production of this equipment on its territory.

The idea with the help of preferences for domestic equipment to stimulate its production in Russia has been in the air since the end of the 2000s of the 21 century. Then it was decided to assign the status of a domestic manufacturer to joint ventures of foreign companies in Russia, which would give such enterprises some financial and operational advantages. However, this did not help much in the field of telecommunications production: at the end of 2011, such companies as, for example, Swedish Ericsson and Chinese Huawei curtailed their production in Russia.

Then the idea appeared to indicate the need to use Russian-made equipment in various large state projects and in tenders. For the first time, such an idea was expressed by representatives of the Ministry of Communications in 2008 during the development of the federal target program "Development of Broadcasting until 2015." Then it was supposed to allow only domestic equipment to build terrestrial digital television networks. However, this idea was not implemented, including ― due to the lack of criteria for domesticity.

Despite the fact that the criteria did not appear, in 2010 the requirement to use Russian equipment was included in competitions for obtaining frequencies of 2.3-2.4 GHz for wireless access networks using WiMAX technology in 40 regions of the country. Most of these contests were won by Rostelecom, and the lack of understanding of what equipment can be considered Russian threatened the timely fulfillment of the licensing conditions for the competitions.

Alkatel-Lucent RT may begin production of LTE equipment

In February 2011, it became known that the first production of equipment for the construction of fourth-generation (4G) communication networks could be created in Russia. A joint venture between Rostechnologies and Alcatel-Lucent plans to localize LTE technology. The joint venture "Alkatel-Lucent RT" was created in the fall of 2009: the state corporation "Russian Technologies" contributed production areas to the joint venture, and the French-American Alcatel-Lucent - technologies.

In addition, RVM Alliance, a joint company of the Israeli manufacturer Runcom Technologies with the Russian Alliance group and the concern, Sozvezdiye 1C Franchisi as well as the enterprise and "," also claimed the title of Russian manufacturer of LTE equipment. the AmericanMotorola InformInvestGroup

Joint venture between NSN and Mikran in Tomsk

On March 14, 2011, Rusnano signed an agreement of intent with the Tomsk enterprise Mikran, the regional administration and the Russian representative office of Nokia Networks (formerly NSN). Rusnano will act as an investor in the production of LTE base stations in the Tomsk region on the basis of the Mikran enterprise.

On September 20, 2011, it became known that Nokia Networks (formerly NSN) (NSN) and NPF Mikran signed an agreement on the distribution of shares in the newly created joint venture Center for Wireless Technologies, which will produce 4G LTE base stations for Russian operators. The production will be located in the Special Economic Zone of the technical and innovative type in Tomsk. The agreement of intent for the production of LTE base stations of the company was announced in March this year.

Under the shareholder agreement, the NSN group (NSN B.V. and the Russian division of NSN) will have a 75% stake in the joint venture at the first stage, and Mikran will withdraw 25% of the shares. At the second stage, presumably at the end of 2011, another 25% of the shares of the joint venture as a result of the sale will go to Rusnano. Investments in the project were not disclosed. The launch of production is scheduled for the 4th quarter of 2011.

The agreement also provides for the transfer by Nokia Siemens Networks of the knowledge necessary to organize serial production with production volumes that allow meeting the needs of the Russian telecommunications market. Mikran specialists will use NSN technologies, know-how and equipment to produce base stations for 4G LTE networks, including system modules, radio modules and nodes for LTE networks.

Earlier it was reported that the volume of production at the new joint venture could reach 10 thousand. LTE BS per year, subject to the presence of demand for such products. It is planned that the payback of the new project will be three years. The possibility of exporting products to the world market is not excluded. Thus, NSN becomes one of the main contenders for the status of a Russian manufacturer of telecommunications equipment. Innovative NSN technologies will speed up the production of equipment for 4G networks in Russia.

On December 1, 2011, Nokia Networks (formerly NSN), the research and production company Mikran and Rusnano opened a joint production of Long Term Evolution (LTE) base stations^[6]

The joint venture Center for Wireless Technologies, located in the Tomsk special economic zone, has already released the first base station Flexi Multiradio 10 from Nokia Siemens Networks and by the end of December 2011 plans to manufacture a batch of 1,000 pieces of equipment. The Flexi Multiradio 10 station simultaneously supports GSM/EDGE, WCDMA/HSPA +, LTE/LTE-Advanced and offers over 10 Gbit/s capacity while consuming 30% less power compared to the previous generation Flexi Base Station (about 1 kW for all 3GPP communication standards).

Earlier it became known that the volume of production should be 10 thousand base stations per year. At the same time, the payback of the project can be 3 years.

In 2014, the organization ceased operations.

How much does Russian need in "native" equipment

According to the methodology approved by the joint order of the Ministry of Industry and Trade and the Ministry of Economic Development (entered into force on November 11, 2011), the main criterion by which telecommunications equipment can be attributed to Russian origin is the level of localization, that is, the indicator that determines what share of labor costs and materials in the finished product refers to Russia. This indicator for various types of telecommunication equipment should be at least 60-70 conditional points, with a lower number of points, the equipment will not be considered Russian. There is another prerequisite: the enterprise - the manufacturer of equipment should be located on the territory of Russia and at least 50% belong to Russian government agencies, state corporations or Russian citizens who do not have citizenship of other^[7] of^[7].

The most interesting thing is how the localization indicator is calculated. It is determined by the formula in which the total "Russian" share of material and labor costs for four main technological operations in the total amount of these costs is divided by the indicator "1 + share of imported raw materials and components in their total cost." In this case, for different types of equipment, a different weight of technological operations in production is established. The most radical provision of the methodology ― the calculation of the share of imports and Russian products in the total cost of materials. The fact is that only if the share of imports was 0.5 of the cost of all components or less, then the 60-70 localization points required to recognize the equipment as Russian would be achieved. In fact, in any telecommunications equipment, the price of imported parts will always be more than Russian, that is, the share of imports will always be more than 0.5, and then the necessary 60-70 localization points will never turn out even theoretically under the most favorable other conditions, that is, when the production costs for each technological operation will be completely Russian.

However, the ministries that issued the order approached the assessment of the state of the Russian industry of telecommunications components is extremely conscious, we fully understand the realities of the current state of this industry. To calculate the share of imports, it will be necessary to take into account not all imported parts and materials used for the release of equipment, but only those imports whose analogues are produced in Russia. Considering that in Russia there are practically no competitive component electronic parts and components similar to foreign ones, then even if the entire electronic filling of the product is imported, but one that is not made in Russia, the share of imports in the calculation will be zero. In this case, the denominator of the formula for calculating localization points will be 1, and to recognize the equipment as Russian, a little more than 60% of the labor costs and materials spent in Russia on the production of the product will be enough. In other words, if production costs in the form of electricity consumption and workers' wages are 60% made in Russia, the equipment will be considered domestic. Achieving such proportions of costs is quite realistic.

That is, in principle, to obtain the official status of equipment of Russian origin, it may not have a single Russian screw, not to mention microprocessors ― the main thing is that the used imported parts have no Russian analogues. At the same time, it is enough for the equipment to be assembled in our country, and the salary of collectors, lighting, heating and renting the assembly room amounted to 60% of all costs for the production process. It should be said that this approach of the authors of the order deserves respect for its honesty: the methodology prescribed in it proceeds from the fact that there is no full-fledged telecommunications production in Russia now.

One effect by order of the Ministry of Industry and Trade and the Ministry of Economic Development is still achieved: the situation of the absence in Russia of its own production of telecommunications equipment and the element base for it is mathematically shown.

LTE and WiMax competition

At the dawn of its development, LTE technology competed with WiMax technology. Nokia Corporation already preferred LTE at that time, believing that this technology would dominate by 2015. Intel relied on WiMAX. The confrontation between LTE and WiMAX resembled a war of VHS and Betamax, Blu-ray and HD DVD formats.

See also

• LTE
• Communication Equipment (Global Market)
• Mobile broadband access Internet (global market)

Notes