NIS GLONASS Navigatsionno-informatsionnye sistemy

NIS GLONASS is the public-private partnership created in 2007. The company implements large-scale implementation projects of GLONASS technologies in the territory of Russia.

For December, 2013 NIS GLONASS are created regional operators in 20 regions of Russia. In plans — to bring this number to 58.

Performance Indicators

Forecast

By 2017 NIS GLONASS company will occupy about 20% of the Indian market of professional navigation equipment, and in the long term the company is going to occupy 20-30% of the world market in the specified segment. The Autonews portal with reference to the words of the CEO of the company Alexander Gurko reported about it. He estimated the volume of the world navigation market at the level of 60-90 billion dollars, including the navigation chips for smartphones and also connected with navigation technologies of a system and service. At the same time the Russian market makes, according to him, about 1% of world, i.e. about 12 billion rubles for the end of 2011.

The federal operator of GLONASS system Navigation-Information Systems (NIS GLONASS) works at the market of India since 2010 and is engaged with creation of a partner network in this country. According to Gurko, the company is included in into ten world leaders in turnovers in a segment of professional navigation systems already now.

2011: Growth by 125.6%

Revenue of NIS for 2011 grew by 125.6% to US$151.7 million for the realization account of large-scale projects. It also affected an indicator of OIBDA which showed growth by 82.7% for complete 2011 and reached US$8.4 million.

History

2009: Start of system deployment of "ERA-GLONASS"

From 2009 to May, 2012 one of the main areas of work of the company - deployment in the territory of Russia the systems of the emergency reaction at accidents of "ERA-GLONASS" based on multifunction receiving devices of domestic production.

NIS had to create conditions for mass implementation of GLONASS technologies in the Russian and foreign markets, participate in development of state policy in the field of commercialization of GLONASS, create navigation and information systems on the basis of GLONASS for the benefit of big industry and state customers, etc.

Within the ERA-GLONASS road accident program till 2020 about 60 million vehicles were going to be equipped with terminals with support by a GLONASS/GPS and modules of cellular communication for data transmission from the place of accident in the dispatching center. Introduction of a system to a system was expected by the beginning of 2014.

2010: Defeat in tender of the Ministry of Internal Affairs

• In the summer of 2010 of AFK "Sistema" purchased 51% in M2M Telematics company. In the spring of 2011 System made the decision on transfer of this packet to management of NIS GLONASS for bigger efficiency. Earlier the enterprise belonged to the current CEO of NIS GLONASS Alexander Gurko who founded M2M Telematics in 2005.

• On October 8, 2010 the Ministry of Internal Affairs of the Russian Federation obyavit the tender for purchase of a set of the navigation and monitoring equipment for tracking moving objects. At once two subsidiary companies of AFK "Sistema" — NIS GLONASS and M2M Telematics lost its KODOS-B, controlled by the director of the department of information technologies of Norilsk Nickel MMC Gennady Bauman. The amount of the tender — 55 million rubles. After it regional structures of the Ministry of Internal Affairs will hold a number of similar competitions, but already with orders for several billion rubles. Expecting a failure of the forthcoming tenders, NIS GLONASS decided to protest results of the November tender FULL FACE and Rosoboronzakaz. NIS claims that its request was rejected for the formal reasons: the accuracy of time synchronization designated by the customer in documents was not less than 100 ms. And NIS offered synchronization accuracy not less than 150 nanoseconds, i.e. approximately in 700 thousand times it is better than the requirements declared the customer. This mismatch was also the reason for rejection of the request NIS. By data SPARK-Interfax, business of KODOS-B grows on orders from the Ministry of Internal Affairs. In 2009 revenue of the company made 79.745 million rubles, and last year the company received orders from the Ministry of Internal Affairs for 178.5 million rubles.

2011

• February, 2011: NAVTEQ is selected from quality of the product provider and services for JSC Navigation-Information Systems (NIS GLONASS). This transaction is unique for NAVTEQ: the company will play an important role not only in formation of the market of cartography and navigation in Russia, but also promotion and development of GLONASS system, projects implementation and expansion of scopes of application where it is going to use the NAVTEQ cards. Being the state-private enterprise, NIS GLONASS implements complex approach for development of the Russian navigation system, including creation of infrastructure which operators could use for start and providing navigation services, and development of a GLONASS products for the Russian and foreign markets. The company also gives technical support during the work with navigation systems and in general promotes commercialization of GLONASS. Within the reached agreement NAVTEQ undertakes to give to NIS GLONASS technical support and consulting services and also to provide cartographic information on the Russian Federation. The NIS GLONASS major project is "ERA-GLONASS" - the Russian automated system of response to the road accidents. This system provides infrastructure for mass implementation of the GLONASS receivers and different navigation and information systems and services. Operation of a system is in full going to begin since 2013.

• August, 2011: It agrees to the order of the Government of the Russian Federation N 1309-r which appeared on July 28, 2011 – the only contractor of the state order to execution of works on equipment of the vehicles used for federal state needs, the equipment of satellite navigation of GLONASS or GLONASS/GPS of the Russian production defines the federal network operator in the field of navigation activity - Navigation-Information Systems (NIS) open joint stock company. Action of the order of the Government of the Russian Federation extends to the works connected with equipment of transport of executive power. "Implementation of the order of the Government of the Russian Federation will promote providing uniform technical policy on compatibility of the state navigation and information systems. It will exclude duplication of the works financed by means of the federal budget and will provide consolidation of purchases for the purpose of more effective production planning of the industry by the enterprises", - the CEO of NIS GLONASS Gurko Alexander Olegovich said.

• In 2011 NIS created a prototype of the ERA-GLONASS system - the basic and the largest project - and began process of its testing. Other large projects include creation of an intelligent transport system of Moscow (2,200 vehicles), the logistic and transport center in Sochi (more than 2,500 vehicles), the systems of transport monitoring for Transneft (6,500 vehicles) and others. In 2011 NIS together with regional partners equipped 150 thousand vehicles in 52 regions of Russia.

• For 2011 NIS GLONASS supplied the aircraft navigation and coherent equipment of a GLONASS/GPS on more than 5.3 thousand cars of the Ministry of Internal Affairs of Moscow, 4.85 thousand machines of the Ministry of Internal Affairs of the Russian Federation in regions and also on 3.7 thousand vehicles of the Ministry of Emergency Situations.

In addition to equipment of transport the GLONASS equipment, in 2011 NIS, for example, developed the project of a system of collection of a payment from heavy-load transport (weight over 12 tons) on the basis of satellite navigation. In December, 2011 a system passed tests in Moscow Administrative Road Inspectorate and received the decision about readiness for industrial use. It is expected that Ministry of Transport will hold a competition on creation of a system of collection of a payment from heavy trucks in 2012.

• For 2011 M2M Telematics Group implemented 300 thousand navigation devices (navigators, chipsets, the navigation and coherent equipment) from which 150 thousand are the share of a GLONASS/GPS chipsets of development of CB Geostar Navigation (enters into M2M Telematics Group). Under a brand M2M Telematics more than 52 thousand units of the navigation and coherent equipment are made and implemented.

• In 2011 NIS together with M2M Telematics Group created the regional partner network, largest in Russia, including 74 operating regional dispatching centers, 16 authorized service customer service centers. During 2011 NIS began implementation of several large-scale long-term projects, as of December 31, 2011 the amount of not performed contracts was 2.2 billion rubles.

• In December, 2011 NIS registered NIS GLONASS Pvt Ltd subsidiary company in India to Mumbai (State of Maharashtra). Ensuring localization of equipment manufacturing and creation of own software products in the market of India will become the purpose of subsidiary company.

2012

• On January 25, 2012 NIS GLONASS and "Siemens" signed the memorandum of understanding for the purpose of expansion and strengthening of cooperation in the development areas and implementations of satellite navigation technologies taking into account the scientific and technical and potential production and also experience in development, implementation and use of these technologies which is available for both companies. The agreement assumes strategic partnership between the companies by preparation and implementing solutions based on GLONASS for the purpose of creation of an electronic system of collection of a payment on account of the indemnification caused to public highways of federal importance by the vehicles having the permitted maximum weight over 12 tons. The signatures under the document were delivered by the CEO of JSC NIS Gurko Alexander, the President of Siemens in Russia Moeller Ditrichi the Area director of the electronic tolling systems of Siemens AG Austria Karl Shtrasser. As the main areas of cooperation partners designated joint holding test and demonstration actions within the project, plan development of combined actions and implementation of joint research activity. Siemens and NIS GLONASS already created the onboard device with the receiver GLONASS/ GPS which passed successful test on a polygon of the Moscow road institute (Moscow Administrative Road Inspectorate). The experimental sample of a system includes subsystems: registration and interactions with users, collecting of telematic information, charge of a payment, formation of the made-out bills and also a subsystem of control of correctness of operation of onboard devices and observance by drivers of vehicles of rules of payment. The software of Siemens and the Russian developments in the field of radio-frequency and photovideo identifications of vehicles was the basis for an experimental sample.

• On February 14, 2012 JSC AFK Sistema announces increase in the share in authorized capital of JSC NIS with 51% up to 70% by the redemption of an additional share issue of the company. JSC AFK Sistema tendered as payment in authorized capital of JSC NIS the packet of 51% of shares in authorized capital of M2M Telematics LLC belonging to it. Thus, JSC NIS became the controlling participant of M2M Telematics LLC.

Before a share of participants of society were distributed as follows: Sitronics Tatarstan (25.5%) of JSC RTI Sistemy Concern (25.5%), Russian space systems of joint stock company (49%)

"The GLONASS project is included into an active stage of commercialization. For this reason shareholders of JSC NIS made the decision on gain of a role of AFK "Sistema" in company management, being the federal network operator in the field of navigation activity, - the President of AFK "Sistema" Mikhail Shamolin noted. – At the same time receiving control over M2M Telematics company, the leader in the Russian market of services of monitoring of transport, navigation and telematics, will allow "NIS" to receive additional industry expertize and to implement synergy effect for further successful development of services based on GLONASS system".

Disconnection from the ERA-GLONASS project

On May 25, 2012 the Prime Minister Dmitry Medvedev signed the resolution on coordination of works and rendering services in the field of navigation activity according to which functions of the federal network operator in this sphere will be performed by "Assistance to Development and Use of Navigation Technologies" non-profit partnership.

In 2010 the government issued the order which made NIS by the only contractor of the state order for project implementation on creation of a system of the emergency response to road accident of "ERA-GLONASS". With entry into force of the government decree of May 25, 2012 this order also becomes invalid. Will lose force and the resolution of 2011 according to which NIS was the only contractor of the state order on equipment of federal vehicles the navigation and coherent equipment with GLONASS.

The source of CNews in one of players of the GLONASS market which wished to save anonymity considers that thus there is the next repartition of the market: in different regions there have to be certain operators dominating in the territory. He also notes that the market began to move towards demonopolization after at the end of 2011 Vladislav Surkov became the Deputy Prime Minister for questions of upgrade. In the stay of the prime minister Vladimir Putin charged to him, among other, to supervise also GLONASS. However final clarity which of players in what will be engaged while he is not present, the source adds.

In the government decree of May 25, 2012 it is said that from NIS the Ministry of Transport suggested to shift functions to non-profit partnership. The last, we will remind, recently also published the draft resolution on creation of a system of the emergency response to road accident of "ERA-GLONASS" according to which regional operators will be engaged in development of a system in regions. Also follows from the document that by August 1, 2012 it is necessary to develop requirements to these operators and to manage to hold a competition at their choice.

As for implementation of GLONASS in regions, within creation of the single regional navigation system in the territory of Russia NIS together with partners equipped with the equipment with support of a GLONASS/GPS over 150 thousand vehicles.

In the country more than 100 city dispatching centers and about 5 thousand client dispatching centers which tasks include monitoring of transport and connection of passenger transport an intelligent transport system of regions work, report in NIS.

2013

Getting out of partnership of GLONASS

The federal operator of NIS GLONASS announced the termination of cooperation with non-profit partnership "Sodeystviye razvitiyu i ispolzovaniyu navigatsionnykh tekhnology" (NP GLONASS). With reference to the words of the CEO of the company Alexander Chub the Vedomosti newspaper reported about it.

The decision to leave partnership was made because NIS was actually discharged of activity of NP GLONASS. Besides, according to the edition, in NIS are dissatisfied with how partnership distributes funds which are allocated to it from the federal budget. In particular, the company was not among new new subcontractors for creation of the warning system about road accident of "ERA-GLONASS" for which the state selected 1.69 billion rubles this year though before NIS was the only contractor of the project.

Purchase of products and services of HP for 4 billion rub

On December 4, 2013 it became known that NIS GLONASS will buy at the HP equipment and software for 4 billion rubles in 2013-14, the head of NIS Alexander Chub told journalists during the declaration of partnership between the companies.

NIS GLONASS and HP company announced cooperation in creation of the federal operator of navigation and information services. Within the first stage of cooperation of the company estimated transaction volume at 4 billion rubles. The second stage of cooperation is planned for 2014-15. The amount of financing does not reveal yet.

"We estimated the technology potential, service opportunities, a factor of presence and financial conditions and selected HP within partnership at creation of technology infrastructure" — Chub told.

The head of the Russian department of HP Alexander Mikoyan thanked NIS for the choice and emphasized that he thanks to cooperation of HP enters the industry of navigation services now. Within the agreement of HP will deliver NIS GLONASS of a storage system,^[1] servers, the software, services etc.^[1].

2015

AFK "Sistema" purchased 89.5% of NIS GLONASS

MTS announced in January, 2015 acquisition of control in Navigation Information Systems company (NIS GLONASS). Purchase is performed through "subsidiary" of MTS - "Moscow City Telephone Network" (MCTN), as the seller the controlling shareholder of MTS - AFK "Sistema"^[2] acted^[3].

For 44 million rubles of MGTS acquired 89.5% of shares NIS GLONASS. The remained share block of the company belongs to state-controlled corporation "Russian Space Systems" (RSS).

Earlier it was planned that NIS GLONASS will be transferred to other asset of AFK "Sistema", Sitronics. Initially Sitronics was the holding integrating the different hi-tech enterprises. However in 2011-2012 its capital assets were transferred to other structures of AFK "Sistema": the microelectronic direction passed in into RTI concern, IT assets were transferred to NVision Group. However, in 2013 "revival" of Sitronics was planned: its head structure together with a number of the enterprises passed under direct subordination of AFK "Sistema". It was supposed that new Sitronics will be engaged in projects in the field of navigation, security of the cities and RFID tags. It was headed by Yury Urlichich, the former head of RKS and the chief designer of satellite GLONASS system. However new Sitronics de facto was not created, and Urlichich left the post. The new owner of NIS GLONASS-MTS - expects to develop M2M-services due to perfect acquisition and "strengthen a market leadership of the intercomputer interaction".

Notes