Regulation of public procurement of radioelectronic products

2022

Evaluation system has been developed to recognize telecom equipment as domestic

On July 18, 2022, it became known about the development in Russia of an assessment system for recognizing telecommunications equipment as domestic. The Ministry of Digital Industry, the Ministry of Industry and Trade and the Telecommunications Technologies Consortium (KTT ANO) took part in the creation of the relevant document.

According to Kommersant, the document enshrines the criteria for determining the level of "domesticity" of base stations, switches, Internet of Things (IoT) equipment, television cameras, antennas, microphones, radar equipment, etc.

In order for such equipment to be recognized as Russian and it gained access to the public procurement market, its manufacturer must have the rights to design and technological documentation, to the trademark and source code of the software. The Company shall also have in Russia its own or contract production base and service centers for warranty services. For each production operation, the telecom equipment supplier will receive a certain number of points.

The Ministry of Digital Science believes that the adoption of the system will determine the volume and complexity of technological operations when creating products. The KTT ANO stressed that the point system will stimulate "the development of competencies in the development and production of equipment." They plan to do this using measures to support companies depending on the level of technology development and the use of the Russian electronic component base.

According to the source of the newspaper, the work of the authorities on restrictions on telecommunications equipment is associated with fears of the dominance of the Chinese component base in "Russian" electronics. Nevertheless, it will not be possible to avoid such a situation yet, experts say.

There is simply no Russian component base, "a source close to the Ministry of Industry and Trade told the newspaper[1]

Mintsifra the Russian Federation hurries buying up of the scarce IT equipment

As it became known on May 13, 2022, the Ministry of Digital Development, Communications and Mass Media of the Russian Federation wants to abandon the general rules for regulating procurement for the IT industry, since, according to the department, this prevents the prompt purchase from the market of the remnants of IT equipment and software necessary for digitalization of the public administration system. According to Kommersant, the head of the Ministry of Digital Science Maksut Shadayev, in a letter to the head of the White House apparatus, Deputy Prime Minister Dmitry Grigorenko, recognized the criticality of the situation with the import of ICT and the high risks of a shortage of IT goods and services.

According to the newspaper (issue of May 13, 2022), Dmitry Grigorenko launched the approval of the Ministry of Digital Science's proposals for a short counter-sanction scenario, which allows him to expect government approval in the coming days. The publication says that the solution of industry problems proposed by the Ministry of Digital Industry is already standard for the anti-crisis policy of departments - we are talking about deregulation of public procurement by refusing to compete and requirements for customers to support entrepreneurs.

Mintsifra the Russian Federation hurries buying up of the scarce IT equipment

In order to conclude contracts faster, the Ministry of Digital Industry is counting on centralized purchases of equipment to create a "State Cloud" from a single supplier. It is proposed to allow direct purchases from a single supplier when contracting with small businesses in the amount of up to 20 million rubles, and instead of competitive tender and auction procedures, buy ICT products through a quotation request (by May 13, 2022, such purchases are limited to the amount of contracts up to 3 million rubles and a share of 20% of the customer's purchases).

In addition, the Ministry of Digital Industry asks to allow calculations for the supply of universal communication services with Rostelecom not by 44-FZ, but by the law "On Communications," this will allow the state monopoly to quickly receive the funds that it needs for the purchase of equipment, since Rostelecom is a supplier of equipment for a number of state IT projects.^[2]

Rostelecom asked the government to make it the only supplier of servers and DSS for public procurement

On May 13, 2022, it became known about Rostelecom's request to make its affiliated structure the only supplier of servers and DSS for public procurement. Thus, the company plans to create a "single window" for government purchases of computer equipment.

This idea, according to Kommersant, was promoted through one of the deputy heads of the Ministry of Digital Science. The initiative is that Rostelecom will have a monopoly on the supply of servers, DSS and the sale of cloud services to Russia. According to the source of the publication, the telecom operator wanted to sell servers not only to state-owned companies and departments, but also to all market participants.

Rostelecom asked the government to make it the only server and DSS supplier

The Ministry of Digital Science told the publication that it did not know about Rostelecom's proposal, but in general did not support the idea of ​ ​ a single supplier of computer technology. They added that in 2019 the company was appointed the only supplier for state cloud services, but by May 2022, SberCloud is the service provider for one of the contracts.

Participants in the discussion of Rostelecom's initiative to give it the rights of the only supplier of servers and DSS for public procurement indicate several disadvantages of this idea. Firstly, there is a possibility that endowing the structure of Rostelecom with such broad functions would jeopardize the sanctions risks, first the company itself, and then all partners. Foreign regulators can easily track such a company, because it is easy to find out the end country - a consumer of computer technology, said Sergey Ovchinnikov, general director of Norsi-Trance. According to the expert, it will be better if each Russian company itself establishes schemes for the import of equipment.

The second drawback of the initiative is the lack of flexibility in the payment and supply schemes that market participants can offer by working separately, adds another source.^[3]

2021

The government clarified the norms on the quota of state purchases of domestic laptops and chips

As it became known in December 2021, the Government of the Russian Federation clarified the norms on the quota of state purchases of domestic laptops and chips. This was reported by Interfax with reference to the relevant decree. According to the document, the new norms relate to portable computers, smart cards, electronic components, integrated circuits, various computer equipment, operating and viewing medical lamps, as well as orthopedic devices of the lower extremities.

As explained by TAdviser in the Ministry of Industry and Trade, quotas are applied only for goods where there is a principle of "second extra" and "third extra." Quotas include only those positions for which restrictions on public procurement are applied, and the new amendment has become technical and is associated with the introduction of bans on this nomenclature in August 2021. In the case of laptops, state customers must still purchase only Russian devices, the department emphasized.

Laptops and smart cards excluded from the list of quoted goods for public procurement

In accordance with the resolution entered into at the beginning of 2021, the quota of public procurement of Russian products affected more than 100 types of goods. The Ministry of Industry and Trade proposed to adjust this list, explaining that by October 2021, the presence of Russian production was not confirmed for 41 types of these goods, only one manufacturer was identified for 35 types of goods, and more than two manufacturers for 31 types of goods.

At the end of October 2021, at a meeting with Deputy Minister Andrei   Zarenin on the development of demand for computing equipment based on Russian central microprocessors, a draft government decree "On Amending Some Acts of the Government of the Russian Federation" was considered. The document said that the number of chips ordered at foreign factories for the production of client devices does not exceed 300 thousand units with a need of 1.5 million (in the regulated, "state" market) and no more than 30 thousand units for the production of  iStorage servers  with a need of more than 150 thousand units, "which is currently the maximum possible production volume." The protocol stated that the specified amount of microprocessors for servers and DSS not fully placed for production due to the lack of financial resources from the developers.^[4]

Government purchases of foreign tablets and servers banned in Russia

At the end of August 2021, the Ministry of Industry and Trade announced a ban on public procurement of some types of foreign-made electronics. We are talking about integrated circuits, smart cards, laptops, tablets, computers, servers and lighting products.

This was reported by RIA Novosti with reference to the statement of the ministry. The department explained that in relation to the rest of the electronics and medical equipment, state customers were obliged to apply the "second extra" rule. This rule implies that the customer is obliged to reject all applications for participation in the purchase in which imported products are offered, if at least one application is submitted with a proposal to supply domestic electronics.

In the Russian Federation, state purchases of foreign laptops, tablets and servers were banned

The restrictions do not apply to goods produced in the countries of the Eurasian Economic Union. In addition, the purchase of imports is considered permissible if similar products are not produced in Russia and the EAEU countries or domestic products do not meet the specific requirements of the authorities.

The government decree signed by Prime Minister Mikhail Mishustin also clarifies the provision of Resolution No. 616, which determines the procedure for classifying "prohibited" products as Russian. Now only those products that are included in the Register of Russian Industrial Products or in the Register of Russian Radio-Electronic Products can be considered such. Accordingly, in an application for participation in public procurement, for example, a laptop supplier will have to submit an extract from these registers.

Deputy Minister of Industry and Trade Vasily Shpak, whose words are quoted in the ministry's message, called this decision "a logical continuation of the ministry's tough import substitution policy."

The act was hard, met with great resistance on the way, but in the end we managed to do it. In the future, we will continue to complicate purchases of foreign electronics in the regulated market, when there is a Russian functional analogue, he added.[5]

Manufacturers ask to change the requirements for Russian IT equipment

On March 23, 2021, it became known about the proposal of the Computer Engineering Consortium (ANO VT, unites large Russian electronics manufacturers) to finalize the criteria for recognition of domestic equipment manufactured by Russian companies.

As Kommersant was told in one of the companies participating in the ANO VT, the consortium asks the Ministry of Industry and Trade to allow equipment manufacturers to use foreign processors, provided that these companies "invest significantly in the production of domestic processors, the creation of their own design centers for microelectronics or the development of a software environment for Russian processors." This is necessary for manufacturers to participate in public procurement, the requirements for which are being tightened.

The volume of investments can be set at the level of 250 million rubles per company. By March 23, 2021, the mechanism is being discussed, the newspaper writes.

Manufacturers ask to allow the use of foreign processors, subject to investment in the production of domestic processors

Not all market participants support the ANO VT initiative. This idea is useful only for foreign microelectronics manufacturers, says Sergey Ovchinnikov, head of Norsi-Trans. In his opinion, the refusal to completely switch exclusively to Russian processors will significantly slow down import substitution, while domestic products need to be developed.

Ivan Pokrovsky, director of the Association of Russian Developers and Manufacturers of Electronics, believes that against the background of current and planned state investments of tens of billions of rubles, the proposal of the ANO VT "seems to be an incomparable exchange."

The volume of investments offered by market participants in the creation of processors and the development of a software environment is not comparable with the real needs of the industry, says Vikharev, director of technology practice at KPMG in Russia and SNGSergey. In his opinion, even combining the efforts of 20 manufacturers of domestic radioelectronic equipment is not enough: billions of dollars are needed to completely switch to the domestic element base.^[6]

2020

The Russian government was asked to simplify public procurement of radio electronics from defense industry enterprises

As it became known in early November 2020, ANO Telecommunications Technologies (ANO TT), formed by the state corporation Rostec, PJSC Rostelecom and the Element group, sent a letter to Deputy Prime Minister Yuri Borisov with a request to simplify state purchases of radio electronics from companies in the military-industrial complex (OPK).

As Kommersant"" writes with reference to this document, the general director of the consortium Gulnara Khasyanova proposes to enable state customers in 2021-2022, outside of competitive procedures, to purchase radioelectronic equipment included in the domestic register from electronic engineers Ministry of Industry and Trade companies included in the consolidated register of defense industry organizations.

According to Khasyanova, the simplification of public procurement of equipment from defense industry enterprises will provide them with understandable volumes of supplies and the possibility of long-term planning. For this, it is supposed to conclude contracts for a period of two years, since the short-term ones that are practiced today "do not allow domestic producers to develop," she says.

In a conversation with Kommersant, Gulnara Khasyanova expressed the opinion that quotas and preferences will provide an incentive for defense industry enterprises to produce more civilian telecommunications solutions. At the same time, market participants interviewed by the publication were skeptical about the proposal of ANO TT.

So, according to the founder of Gagar.IN, Sergei Zorin, it can only be done worse if, in the defense industry, an uncontested supplier is imposed in an attempt to solve the problem when state customers cut off Russian manufacturers, indicating in the tender documentation the requirements and deadlines for a specific imported product. For the development of Russian electronics production, you need not only to close the market from foreign products, but also to simultaneously encourage domestic competition between manufacturers so that they grow and at some point can compete in the world market, Zorin is sure.^[7]

The government instructed to establish quotas for Russian radio electronics for public procurement

On October 19, 2020, it became known about the instructions of the Government of the Russian Federation to agree with government agencies on the size of quotas for the purchase of domestic goods, including radio electronics, as well as the minimum quotas of such goods in public procurement for 2021-2023.

The fact that Deputy Prime Minister Yury Borisov gave such an order to the head of the Ministry of Industry and Trade Denis Manturov was reported by Kommersant with reference to a copy of the letter. The Government confirmed the publication of such a document, and the Ministry of Industry and Trade said that the project is being finalized with government agencies.

The Ministry of Finance is considering proposals on the size of quotas and has already sent proposals to the government on the procedure for preparing annual reports by the customer on their achievement, the department said. The Ministry of Economic Development of the Russian Federation sent proposals for the draft list, but the final version has not yet been received by the department, the press service of the department told the newspaper.

The Government of the Russian Federation instructed to establish quotas for Russian radio electronics for public procurement

According to Ivan Pokrovsky, executive director of the Association of Russian Developers and Electronics Manufacturers, quotas for a number of product categories cannot be implemented. For example, it is difficult to achieve 90% of domestic chip purchases in the coming year, he said. At the same time, domestic solutions already dominate the category of cash terminals, and here the quota is underestimated, the expert says:

If quotas are overestimated, then customers will go around the way of preparing "justifications of the impossibility" of fulfilling the quota, and if they are underestimated, then it will be possible to report on the results, including information on the Russian origin of products that were already purchased in statistics, - he noted.

A gradual increase in quotas will make it possible to get a long-term guaranteed market, which is important for both already released and future products, said Konstantin Solodukhin, general director of the National Center for Informatization.^[8]

The government allocates another 350 billion rubles for the development of radio electronics

As it became known on September 29, 2020 Government of the Russian Federation , it allocates another 350 billion rubles for the development of radio-electronic industry. These funds will be spent until 2023 within the framework of the national economic development plan, which was approved on September 23 at a government meeting, said the director of the radio-electronic industry department Ministry of Industry and Trade Vasily Shpak at the opening of the international forum "Microelectronics-2020."

According to him, the allocated money, in particular, will go to research and development work related to the development of electronic components, equipment, clean gas production facilities, as well as to the development of design centers, subsidizing part of the costs of producing pilot batches of products.

According to the strategy, the goal of the development of the radio-electronic industry by 2030 is to increase revenue 2.5 times, to 5.2 trillion rubles, and exports - 2.7 times, to $12 billion.

The Russian government allocates another 350 billion rubles for the development of radio electronics

The new program for the development of the radio-electronic industry in Russia will gradually restore this industry, said Russian Prime Minister Mikhail Mishustin during a visit to the Semiconductor Device Plant in Yoshkar-Ola on September 30, 2020.

The head of government positively assessed the fact that the country is again reviving the domestic radio-electronic industry, although "everything has not turned out quite simply since the time of the Soviet Union." He noted that the government continues the program to support import substitution in the electronic industry, recalling that about 300 million rubles have been allocated for these purposes until 2024. According to Mishustin, in order to support the industry, industry needs must first be formed.

The head of the Cabinet expressed the hope that such needs and clear guidelines will be formulated in the mentioned state program to stimulate the demand of industries for Russian electronic products, as well as export prospects, transfers. TASS^[9][10]

The Ministry of Industry and Trade presented a State Planning Committee of purchases by the TV set equipment and DSS

On August 18, 2020, it became known about the decision of the Ministry of Industry and Trade to introduce quotas for public procurement of telecommunications equipment and data storage systems. According to the idea of ​ ​ the department, companies whose state share exceeds 50% will have to purchase goods from the register of Russian and Eurasian industrial products based on the schedule drawn up by the Ministry of Industry and Trade.

It is assumed that state-owned companies will be required to report annually no later than February 1 on the implementation of the procurement plan or the inability to do so.

This initiative, as the ministry told Kommersant, is due to the laws on the quota of public procurement of Russian products issued in July 2020. By August 18, the size of quotas is "in the process of calculation and approval," the department added.

Ministry of Industry and Trade presented a state plan for the purchase of telecommunications equipment

Interest on quotas has not yet been fully worked out. We can talk about quotas in the amount of 30-50% of the volume of purchases, - Ivan Pokrovsky, executive director of the Association of Russian Developers and Electronics Manufacturers, explained to the publication.

The initiative will most of all affect large state corporations, which will have to look for ways to modernize networks using Russian solutions. Rostec told the newspaper that Russian companies are experiencing difficulties in entering public procurement markets, and the quota mechanism will become an effective measure to support the domestic commodity producer.

However, Zelax President Sergei Sukhman, familiar with the development of documents, warns that it is easy to bypass the requirements: large companies, even at the stage of forming the terms of reference, describe the parameters under which domestic products will not fall.

For state-owned companies, quotas are the need to think over the integration of Russian solutions into infrastructure, says Alexander Sysoev, head of computing infrastructure at CROC.^[11]

The Ministry of Industry and Trade decided to consolidate the priority of Russian electronics in the state order

On June 10, 2020, it became known about a project prepared by the Ministry of Industry and Trade on restrictions on the admission of foreign companies to the electronics market. The agency proposes to consolidate the priority of Russian solutions in public procurement.

As he writes Kommersant with reference to this document, states the draft amendments to the government decree on stimulating the production of radioelectronic products expands the list of Russian manufacturers that fall under preferences in FZ-44 purchases.

On June 10, 2020, it became known about a project prepared by the Ministry of Industry and Trade on restrictions on the admission of foreign companies to the electronics market

According to the document, restrictions and prohibitions on the purchase of foreign electronic products are supposed to be introduced according to the list of the Ministry of Industry and Trade - by June 10, 2020 , seven items were included in the neg, including computer, electronic and optical equipment, household electrical appliances and lighting devices.

For industries where production is not sufficiently established to ensure full coverage of demand, the "second extra" rule will apply, allowing the participation of foreign equipment in the absence of domestic equipment. The list of such industries will be promptly regulated by the Ministry of Industry and Trade,  - the department told the publication

As explained to Kommersant in the office of Industrial Deputy Prime Minister Yuri Borisov, Russia is moving to tougher regulation in the form of bans on the purchase of foreign analogues, following the path of supporting the Russian manufacturer - both in the field of radio electronics and in other industries.

So far (by June 10, 2020  ), the "third extra" mechanism is used for products subject to restrictions, providing for the refusal of an application from a foreign supplier in the presence of at least two Russian FZ-44 that meet the requirements.

The Ministry of Economic Development told the newspaper that the practice of introducing bans does not cause difficulties in providing state needs and does not eliminate competition at tenders, but stimulates investments in the localization of production in the Russian Federation.^[12]

The authorities want to introduce forced purchases of Russian electronics for state-owned companies

On February 7, 2020, it became known that the Ministry of Industry and Trade had prepared a draft directive aimed at reducing purchases of foreign-made radio electronics by Russian state-owned companies, including their subsidiaries.

The draft directive of the Ministry of Industry and Trade has already been sent for approval to the Government of the Russian Federation, including its deputy chairman Yuri Borisov, who oversees industry in the government.

The project involves the use of quotas when state-owned companies switch to purchases of domestic radio electronics from a special register. In addition, it is planned to conduct quarterly stress tests to assess potential currency and sanctions risks, as well as cyber threats.

According to the text of the project, the initiative to discuss the technological dependence of Russian enterprises on foreign radio electronics should come from representatives states on the board of directors of state-owned companies.

According to the document prepared by the Ministry of Industry and Trade, the government will establish quotas for the purchase of domestic products for each state-owned company. The purchase of foreign goods is allowed only in the absence of Russian applications after two attempts to purchase.

The government will be able to determine the conditions for the formation of the maximum contract price and the price of a contract with a single supplier based on the characteristics of domestic goods. In case of non-fulfillment of the minimum share of domestic purchases at the end of the year, the state-owned company is obliged to justify the impossibility of achieving it.

After collecting reviews, the project will again be sent for approval, it became known from the words of a representative of the Ministry of Industry and Trade. He did not specify which quotas for the purchase of domestic radio electronics are proposed to be introduced, but a solution to this issue is planned to be adopted by the end of March 2020. So far, the directive has not received the support of the Ministry of Finance, and the Ministry of Economy is awaiting additional information about the project.

According to information, there is no consensus in the Government on this issue. The Ministry of Finance did not support the project of the Ministry of Industry and Trade, the Ministry of Economic Development asked for additional data^[13].

2019

The authorities will be able to oblige companies to use Russian equipment and fiber optic lines to connect the SZO to the Internet

On December 30, 2019, it became known that Government of the Russian Federation it published a Internet legal information order on the official portal, according to which Ministry of Digital Development RUSSIAN FEDERATION , when purchasing services for connecting to the Internet to socially significant objects (SZO), it will be able to demand the use of the Russian telecommunication equipment and. fiber optic cable

To establish that during the execution of state contracts concluded by the Ministry of Digital Development of the Russian Federation for the purchase of services for connecting to the [...] Internet, and for transferring data when accessing this network to social facilities; separately for each subject of the Russian Federation, amendments to the specified contracts are allowed in terms of: the contractor's obligations to use telecommunication equipment and fiber-optic cable for the provision of services, which, in accordance with the legislation of the Russian Federation, are of Russian origin, the document says.

As noted in the order, the contractor has the right not to use Russian electronic products in agreement with the customer if there is no corresponding domestic analogue. Also, the contractor has the right to fulfill the stages of the state contract ahead of schedule, providing for the connection of social facilities to the Internet, if the customer does not have the right to pay for the fulfilled and accepted obligations provided for by the state contract. In the event of an increase or decrease in the number of connected social facilities, the state customer, in agreement with the contractor, has the right to increase or reduce the volume of the service by no more than 30% with an increase or decrease in price.

Earlier, the Ministry of Digital Development, Communications and Mass Media of the Russian Federation spoke about the results of the first exercises, which took place several days in Moscow, Vladimir, Rostov and several other subjects within the framework of the law on the sovereign Runet. During the exercise, the stability of communication was tested, the security of cellular communications was checked (including issues of protecting personal data and intercepting traffic) and the security of the Internet of Things was tested. ^[14].

Putin instructed to stimulate the acquisition of Russian telecom equipment with the help of related loans

On February 23, 2019, the President Russia Vladimir Putin approved the list of instructions following the results of the forum of the All-Russian Public Organization Business Russia"," held on February 6. Part of the instructions concerns domestic telecom equipment.

Vladimir Putin instructed to develop measures to economically stimulate the acquisition of Russian telecom equipment

In particular, the President instructed to develop and ensure with the participation of Russian business associations the implementation of a set of measures aimed at economically stimulating the acquisition of Russian telecommunications equipment. For consumers of such equipment, a mechanism for granting related loans should be defined.

Prime Minister Dmitry Medvedev has been appointed responsible for this order. The deadline is March 31, 2019.

Another order is aimed at providing support for developers of competitive domestic solutions for new generation communication systems in the implementation of the national program "Digital Economy of the Russian Federation." The deadline for the execution of the order is March 31, 2019. Dmitry Medvedev is also responsible.

A unified register of Russian radioelectronic equipment will be created in Russia

On January 14, 2019, it became known about the possibility of creating Russia radio electronic equipment of Russian origin in the unified register with the allocation of a register of telecommunication equipment of Russian origin in it.,, and Ministry of Industry and Trade Ministry of Economic Development Ministry of Digital Development, Communications and Mass Media FAS Russia must be submitted to the " Government of the Russian Federation draft regulatory legal act on the creation of a unified register" by March 1, 2019.

Corresponding instructions were given to the departments by Deputy Prime Minister Maxim Akimov following a meeting on the use of domestic telecommunications equipment in the implementation of the national program and the national project "Digital Economy."

The authorities will create a unified register of Russian electronic equipment

The Ministry of Industry and Trade, the Ministry of Finance and the Federal Antimonopoly Service must prepare amendments to the legislation by March 1, 2019 stating that only equipment from this register is recognized as telecommunication equipment produced in Russia. Government contracts should have obligations to purchase and use only such equipment. 

By February 1, 2019, the Ministry of Industry and Trade and the Ministry of Finance will have to submit proposals to stimulate the use of telecommunications equipment of Russian origin, including proposals to provide preferential credit lines to buyers of such equipment, as well as proposals to introduce a preferential regime for the payment of taxes and insurance premiums by enterprises producing equipment from the register.

In addition, by March 1, 2019, proposals should be prepared for the implementation of measures aimed at training qualified specialists for the construction and operation of information infrastructure based on Russian telecommunications equipment and computer equipment.

Maksimov Akimov also instructed the Ministry of Telecom and Mass Communications, together with the Ministry of Industry and Trade, Rosatom, Rostec and RVC JSC, to provide for the development of a comprehensive project for the development of wireless communication technologies based on promising domestic telecommunications equipment by February 1.^[15]

Until February 15, the FCS, the Federal Tax Service and the Ministry of Internal Affairs must report on the results of the analysis of the movement of imported telecommunication equipment for compliance  with the VEDEAES TN codes.

2018

Deputy Prime Minister Akimov highlighted key tasks in the telecommunications industry

Russian manufacturers of telecommunications equipment should feel as comfortable as possible in the domestic market and squeeze out foreign competitors, all conditions will be created for this, Russian Deputy Prime Minister Maxim Akimov said in Novosibirsk in December 2018.

"Today is a reason to talk about the problems of the telecommunications industry, equipment, in order to solve key problems. One of them is to make the presence of Russian manufacturers in the Russian market as comfortable as possible and squeeze our foreign competitors on conditions that are competitive and attractive for telecommunications companies, "he

The Deputy Prime Minister noted that the speech at the meeting of the council will be about "how technologically, competitively and competently to do it."

In turn, the deputy chairman Federation Council Andrei Turchak said that the council will substantively discuss and, possibly, develop additional measures to support the industry at the legislative level, levels of regulation, including customs.

Akimov and Turchak in Novosibirsk took part in the opening of the second stage of the production of telecommunications equipment of Eltex, one of the Russian developers and manufacturers of telecommunications equipment. The head of the company, Chernikov Alexei, said that he expects that with the development of production, his company will be able to occupy up to 30-35% of the Russian market in the next two to three years.

State-owned companies will be obliged to purchase Russian telecommunications equipment

Ministry of Digital Science together Ministry of Economic Development Ministry of Industry and Trade Russia with and develops directives according to which state-owned companies will have to purchase equipment from the register telecommunication of equipment Russian of origin (TORP) or justify the purchase of foreign telecommunications equipment. This was announced on December 11, 2018 by the Deputy Director of the High Technology Development Department. According Ministry of Digital Development, Communications and Mass Media Dmitry Nikitin to the official, this will give "an additional incentive to state-owned companies" and they will be able to pay more attention to domestic telecommunications equipment.

Nikitin noted that the directives should be issued in the second quarter of 2019, but it is possible that they will be sent to state-owned companies ahead of schedule.

The register of telecommunications equipment of Russian origin, which is maintained by the Ministry of Industry and Trade, was created on the basis of a 2010 government order No. 858-r. The register contains more than 400 domestic analogues of telecommunications^[16].

The Ministry of Communications is discussing the expansion of the list of Russian telecom equipment

The Federal Communications Agency (Rossvyaz) proposes to expand the list of communication equipment, which may be called domestic, now this issue is being considered by the Ministry of Communications, Telesputnik reports in February 2018. The Ministry of Communications^[17] reference to Vladimir Arefiev, Deputy Head of the Department of Public Services in the Field of Communications of Rossvyaz.

The official recalled that now the status of telecommunications equipment of Russian origin (TORP) receives equipment subject to mandatory certification - such as switching and routing equipment (including wireless WiFi access points of the 802.11a/b/g/n standard), monitoring, telephone, base stations, digital transport systems. At the same time, according to him, the means of communication to be declared - any terminal equipment, AFS, power supply equipment, cable products, modems, servers - do not fall into this list of the list of joint orders.

According to Rossvyaz, in 2016, 2590 declarations were registered, of which 551 (or 21%) are equipment made in Russia. In 2017, the dynamics remained almost the same - 594 (or 22%) communications out of 2649 registered declarations. At the same time, 815 compliance certificates were issued in 2016, of which 265 (or 32%) are recognized as domestic equipment, in 2017 - 295 (or 39%) of domestic communications out of 748 compliance certificates.

Back in 2017, Rossvyaz proposed expanding the list of THORPs, assigning this status to all funds used in the public communication network

2017

The register of Russian telecom equipment did not become a market incentive - analysts

The telecom operator equipment market in Russia continues to account for a small share of the global market and does not show a clear positive development trend. This is the conclusion reached by J'son & Partners Consulting. According to him, imported equipment in the Russian telecom industry accounts for almost 94%^[18][19]).

The measures that are being taken at the federal level have not yet brought tangible results either - for example, the register of telecommunications equipment of Russian origin (TORP). The agency notes that the companies that most actively receive THORP status are lagging behind in sales in the market. Of the 334 items of equipment with THORP status, only 43 (13%) are actively in demand by the market over the past 6 years, including switches and routers.

A negative trend continues to decrease the share of exports in the external economic activities of the operator equipment segment. In most cases, the countries of the post-Soviet space remain consumers of such equipment. Telecom equipment is mainly supplied to Russia by China. At the same time, the growth rate of various manufacturing sectors in Russia was the highest in the world after China over the past 20 years. The total annual growth rate of electronic and optical equipment production in Russia for the period 2000-2015 amounted to 12.5% compared to 16.7% in China, 0.3% in the USA and a decrease in the UK by 4.8%.

At the same time, in absolute terms, the volume of Russian industry is not large against the background of industrialized countries. The existing size and diversification of manufacturing industries is not enough for an industrial breakthrough in the electronic and telecommunications sectors, the agency said. There is also no own developed digital electronics and ICT equipment. own developed digital electronics and ICT equipment is a challenge to maximize the economic effect of digitalizing the economy on imported infrastructure.

Import dependence can stop the development of the segment of domestic telecom equipment

According to representatives of the information and analytical center of the domestic radio-electronic industry Central Research Institute "Electronics" (part of the "" structure), Rostec the share of Russian telecom equipment in the procurement structure of Russian business states continues to increase, but its further growth may be prevented by the almost complete absence of domestic solutions for the next generation networks, including, 5G transfers. Kommersant^[20]

Telecom Equipment Costs

In 2016, Russian business and the state spent about 500 billion rubles on the purchase of telecommunications equipment. Of these, devices of domestic production accounted for 5.5%, which is 0.5 percentage points more than the same indicator in 2015 (with a market volume of 430 billion rubles), calculated in the Central Research Institute "Electronics." Most of the specified amount was spent on purchases by telecom operators. The costs of other companies did not exceed 20 billion rubles. However, as expected, they will grow by the end of 2017 to 24.5 billion rubles.

The situation on the telecom market of Russia

According to the general director of the Central Research Institute "Electronics," domestic Alena Fomina developers are best represented in segments IPswitchboards-,, routers gateways and a number of others. At the same time, Russian companies are practically absent in the following sectors: solutions for building 5G networks, technologies for building software-defined networks () SDN virtualizations and network functions (NFV).

Consequences of import dependence

According to experts from the Central Research Institute "Electronics," the import dependence of the telecom industry threatens the risks associated with restricting or banning the supply of foreign equipment. This can slow down the dynamics of the development of the national network infrastructure and create a shortage in the segments of the telecom equipment market, which has no domestic analogues, according to the Central Research Institute.

Market Players Comments

According to Rostelecom, the use of domestic telecom equipment increases while improving its quality.

According to MegaFon, the share of domestic equipment in the operator's network has been stable over the past few years. In particular, the company uses domestic cable products - radio-frequency and fiber-optic cables, passive antenna devices, equipment of transport networks, as well as a wide range of domestic software.

In turn, VimpelCom announced its readiness to use domestic equipment on its network, subject to the optimal balance of price and quality, specifying that "its choice is still small."

According to representatives, Tele2 the operator considers domestic equipment along with foreign equipment, focusing primarily on quality when choosing it.

MTS did not provide a comment.

Companies with the state budget will be obliged to purchase telecom equipment from Russia

The government is considering an initiative that assumes that government agencies and companies more than half owned by the state should give preference to domestic telecom equipment in procurement. We are talking about equipment included in the corresponding register of the Ministry of Industry and Trade, they write in September. "News

possibility of extending the restriction on the admission of telecom equipment of foreign origin to purchases is being worked out not only for state and municipal needs, but also for companies with state participation," the press service of the ministry told the publication.

A similar rule is currently in effect for software purchases. In case of bidding, state-owned companies should give preference to domestic software from the register. If it is not suitable, it is necessary to justify the reasons for the refusal.

Restrictions on public procurement of foreign equipment for GLONASS

The government has expanded the list of foreign electronic products that are subject to restriction when making public procurement, adding GLONASS equipment to it. The corresponding decree was signed on July 6, 2017.

In addition to GLONASS equipment, electrical alarm devices, both sound and light, as well as electrical equipment for ensuring safety or traffic control on railways, tram tracks, roads, inland waterways, parking areas, port facilities or airfields were added to the list.

The public sector was banned from buying foreign GLONASS equipment. Photo source: 360tv.ru

The government explains its actions by the fact that microcircuits and modules for GLONASS are already being produced in Russia, as well as light signaling equipment "with characteristics that are not inferior to foreign counterparts." The decision should increase its competitiveness and contribute to the further development of this market in Russia^[21]."

2016

Government decree on public procurement of electronic products

On September 27, 2016, the Russian government issued Decree No. 968, establishing restrictions on the admission of certain types of foreign electronic products to public procurement. The list of products for public procurement of which restrictions have been introduced contains, including:

• cell phones,
• laptops,
• tablet computers,
• cash terminals,
• ATMs,
• integrated electronic circuits,
• keyboards,
• printers,
• graph builders,
• I/O terminals,
• scanners,
• monitors, etc. (more than 100 items in total).

According to the decree, when purchasing these types of radioelectronic products, the state customer is obliged to reject all foreign applications, provided that at least two applications are submitted to the tender offering the supply of similar Russian-made equipment or manufactured by the countries of the Eurasian Economic Union. The first - they contain proposals for the supply of products produced in the territory of the Russian Federation, the second - do not contain a proposal for the supply of the same type of products from one manufacturer.

This restriction comes into force on September 30, 2016 and will be valid until August 31, 2018.

A separate clause stipulates that during the execution of the contract, at the conclusion of which the customer rejected applications with offers of imported products, the replacement of the manufacturer and purchased goods with foreign ones is not allowed.

The government decree contains instructions on what products can be considered produced in Russia

From September 1, 2018, according to the decree, similar rules will apply for products produced in the member states of the Eurasian Economic Union. In addition to the Russian Federation, it includes Armenia,, Belarus, Kazakhstan Kyrgyzstan. When two or more bids are submitted to the tender with the offer of products of their countries from different suppliers, applications with offers of other imported products will have to be rejected by the customer.

The resolution establishes a list of types of products that are subject to restrictions. It includes computing machines of various kinds, laptop computers (including laptops and tablets), printers, cash registers, ATMs, computer monitors and projectors, internal and external storage devices, electronic communications, video cameras, televisions, audio playback equipment, handset telephones and for cellular communication networks, and much more.

According to the decree, during procurement, products included in the list and not contained in it cannot be combined into one lot.

The explanatory note to the draft resolution indicated that it was focused on creating conditions for the long-term development and formation of competitive advantages of manufacturers of Russian electronic products.

Within the framework of the WTO, the Russian Federation has no obligations in relation to public procurement, in connection with which the potential for creating and developing the production of Russian microelectronic products, computer equipment, lighting products, telecommunications production and other types of Russian radio-electronic industry is concentrated in this area of ​ ​ regulation, which can be realized by introducing prohibitions and restrictions on access to state orders, - said in the explanatory note.

The Ministry of Industry and Trade proposes to limit the purchase of imported telecom equipment

On March 9, 2016, it became known that state-owned and state-owned companies could be banned from buying foreign telecommunications equipment if there is a similar Russian one. Experts note that domestic solutions are only on paper.

Izvestia wrote that the Ministry of Industry and Trade has developed a draft government decree restricting state purchases of foreign telecom equipment. It is assumed that it can be purchased only in the absence of Russian analogues in the register of the Ministry of Industry and Trade and if the goods do not meet the customer's requests.

State-owned and state-owned companies may be banned from buying foreign telecommunications equipment if there is a similar Russian

The authors of the project propose to introduce for manufacturers from the countries of the Eurasian Economic Union the same admission regime to the Russian market as for domestic companies.

According to the deputy general director for technology, RBC Alexandra Kononenko often equipment related to Russian is not completely such, since most of the equipment is based on a foreign element base (mainly Chinese) with the addition of Russian components.

From the experience and reviews of colleagues, I can say that such equipment - "Russian-Chinese self-assembly" - does not always work stably and with many operational problems. Therefore, when it is possible to buy branded foreign equipment, which is time-tested, at the same cost as Russian, many make a choice in favor of foreign equipment. No one wants its infrastructure to "fall," Kononenko said.

The head of Cognitive Technologies Olga Uskova supports the project of the Ministry of Industry and Trade. Uskova also advises the government to indicate additional parameters of equipment for public procurement so that manufacturers can prepare for the release of the necessary models.^[22]

2015

How the state plans to cut off foreign suppliers of telecom equipment

TAdviser got acquainted with the presentation of the Deputy Minister of Communications of the Russian Federation Aleksei Sokolov dated November 27, 2015 on the main proposals of the ministry to support import substitution of telecommunications equipment.

The coordination of these works is carried out by the interdepartmental working group of the Ministry of Communications and the Ministry of Industry and Trade. Together, the ministries intend to implement several initiatives:

• principle "third extra" - restriction of admission of foreign manufacturers of telecommunication equipment to procurement for state and municipal needs, if there are applications for two or more goods of Russian origin;

• granting preferences in relation to state contracts in the amount of 15% to participants in the placement of an order, applications for participation of which contain proposals for the supply of Russian-made products;

• mandatory testing of equipment according to the methods developed by the Ministry of Telecom and Mass Communications together with the Ministry of Industry and Trade and with the participation of interested departments in order to ensure the information security of the Unified Telecommunication Network of the Russian Federation;

• the development, together with the Ministry of Industry and Trade, of a mechanism for granting preferences to domestic telecommunications equipment by analogy with the implemented mechanism for domestic software.

The restrictions proposed by the Ministry of Communications and the Ministry of Industry and Trade, apparently, will apply to both government agencies and state-owned companies. The draft document on 15% preference has already been published on the portal of public discussion of regulatory legal acts and applies to tenders, auctions and requests for quotations for the purchase of software, equipment and services of all state corporations, state-owned companies, natural monopolies.

The law on restricting public procurement of foreign software concerns only state authorities, but on December 22, Russian President Vladimir Putin supported the proposal of the IT industry to limit public procurement of foreign software to state-owned companies as well.

Purchases of foreign telecommunications equipment in government agencies and state-owned companies will be limited

Due to a number of factors, the Russian Federation has not developed software and hardware for telecommunications equipment in the last 20 years. The exception was companies that partially occupied the narrow market of telecommunications devices that solve specific problems related to law enforcement agencies, as well as OEMs that were engaged not so much in the development itself as in the import and adaptation of foreign solutions. Wide markets of routers, switches, equipment for cellular networks, wireless equipment were almost completely lost to foreign vendors, "says Sergey Nikulin, CEO of RDP.RU.

In his opinion, it was almost impossible to eliminate the backlog due to lack of competitiveness or lack of production of an element base in Russia.

Fortunately for Russian companies, there has been a global trend towards virtualization of network functions and the transition of network functionality to a purely software area based on standard server platforms. The competition of network equipment manufacturers is moving to the level of software competition, and here the weak point of Russia - hardware - no longer restrains the development of our companies, the expert adds.

Factors such as the low exchange rate of the ruble and international sanctions also favor, Nikulin said.

All these factors together, in his opinion, give Russian companies a window of opportunity to occupy a significant share (> 30%) of these broad markets in Russia and the countries of the customs union, and in the future to claim global expansion.

In order for these plans to become reality, serious support of the authorities is needed and in this sense the initiative of the Ministry of Communications is very expected and timely, Nikulin notes.

Ministry of Finance and Minek did not agree on the proposal of the Ministry of Communications

On September 22, 2015, it became known that the proposals of the Ministry of Communications to stimulate the purchase of Russian-made telecommunications equipment were sent for revision by the financial and economic block of the government.

As measures to support domestic vendors, it was proposed to partially subsidize the costs of purchasing their hardware (including paying interest on loans), introducing subsidies for the disposal of outdated foreign equipment and providing preferential access to frequency bands on which mobile Internet equipment with the status of Russian origin operates.

Proposals of the Ministry of Telecom and Mass Communications to stimulate purchases of Russian-made telecommunications equipment were sent for revision

In addition, the Ministry of Telecom and Mass Communications spoke about the need to open credit lines for operators building networks on Russian equipment, reduce value added tax when buying it, reduce payments to the universal service reserve by the amount by which the operator purchased domestic equipment, and simplify the certification of Russian telecom products.

As they wrote Vedomosti in the issue of September 21, 2015 Ministry of Economic Development Ministry of Finance , and made comments on the prepared draft. In particular, according to the representative of the Ministry of Economic Development, the Elena Lashkina measures proposed by the Ministry of Communications do not take into account the financial and economic consequences.

Ilya Rachkov, partner of the law firm King & Spalding, notes that import-substituting subsidies, discrimination against manufacturers only on the basis of origin and simplified certification, which is the so-called non-tariff barrier, are prohibited within the World Trade Organization.

According to the representative of the Ministry of Finance, preferences for manufacturers of Russian telecommunications equipment should be financed from the state program "Information Society (2011-2020)," for which the Ministry of Communications has already allocated budget money. At the same time, the ministry's proposals to support domestic manufacturers of communication equipment to one degree or another are already enshrined in the current legislation, including the tax one, and the telecommunications industry has not suffered so much from the crisis compared to others, the Ministry of Finance said.^[23]

Proposal of the Ministry of Telecom and Mass Communications on preferences for Russian telecom equipment

On September 17, 2015, it became known that Ministry of Digital Development, Communications and Mass Media Russia it had prepared proposals for the formation of a set of measures for the import substitution of telecommunications equipment by providing benefits to Russian manufacturers of these solutions.

According to Kommersant, the Deputy Minister of Communications Aleksei Sokolov sent a letter to the Ministry of Industry and Trade and a number of other relevant departments, which states the creation of a priority procedure for the purchase of domestic telecommunications equipment by authorities and companies with state participation in tenders.

Russian telecom equipment can receive preferences in public procurement

The ministry proposes first at Rostelecom to test the method of granting point preferences to Russian hardware telecom solutions and the system for planning their public procurement for a period of more than one year. To receive benefits, Russian manufacturers will have to undergo testing of their products at the competence center in the field of telecommunications equipment, communication networks and software, created in Ufa on the basis of Rostelecom.

According to Aleksei Sokolov, the Ministry of Telecom and Mass Communications is preparing for consideration by the government a draft regulatory act on restricting the purchase of foreign telecommunications equipment at the expense of budgets of all levels in the event of existing domestic analogues. The next discussion of this issue is scheduled for September 30, 2015 as part of a meeting on the development of microelectronics chaired by Russian President Vladimir Putin.

Rostelecom says that the company is consistently implementing a set of measures to increase the share of purchased Russian-made equipment. At the same time, a source close to the operator indicates the complexity of the implementation of this program.^[24]

2014

Preparation of import substitution plan

Based on the instructions of the President and the Government of the Russian Federation, the Ministry of Industry and Trade and the Department of the Electronic Industry, as in one of its divisions, are preparing sectoral import substitution plans , Pavel Kutsko, deputy director of this department, said in March 2015.

According to him, as of March 2015, such plans have already been formed and are undergoing stages of public discussion, discussion at the Analytical Center under the Government of the Russian Federation and other government bodies .

Deputy Director of the Department of Electronic Industry of the Ministry of Industry and Trade Pavel Kutsko

In March, a plan for import substitution in the electronic industry was also sent for approval to interested federal executive bodies. Subsequently, on its basis, it is planned to create a new program for the development of the radio-electronic industry in Russia, Kutsko said.

About 200 projects were selected in the plan, which are distributed in five main areas: telecommunications technology, computing technology, medical technology, electronic engineering and intelligent control systems. The implementation of these projects is planned to begin in 2016.

These five areas are the basis for the state program for the development of the radio-electronic industry being developed at the Ministry of Industry and Trade. In all these areas, "road maps" have been developed, directions and measures have been identified for which priority import substitution is necessary.

Pavel Kutsko also noted that he noted that the percentage of use of the domestic radio-electronic base is growing, but the percentage of imported components continues to prevail significantly. In his opinion, there are two segments according to which the Russian industry is most ready for "global import substitution" - this is telecommunications technology and computer technology.

See also

• Microelectronics (Russian market)
• Regulation of public procurement of radioelectronic products
• Russian telecom equipment got a real chance
• Import substitution of software in the public sector
• Import substitution of computer equipment and microelectronics
• State support for Russian manufacturers of electronic components and electronic equipment
• Review: Import substitution of information technology in Russia
• The main problems and obstacles to import substitution of IT in Russia
• Advantages of replacing foreign IT solutions with domestic ones
• Main risks of IT import substitution
• Import substitution of information technologies: 5 "For" and 5 "Against"
• How did IT import substitution affect the business of foreign vendors? A look from Russia
• How the launch of the register of domestic software influenced the business of Russian vendors
• What changes are taking place in the Russian IT market under the influence of import substitution
• Assessment of import substitution prospects in the public sector by market participants

Notes