Telecom ministry accused of breaching 4G network competition

MOSCOW, September 2 (Itar-Tass) -- The Russian Federal Anti-Monopoly
Service (FAS) said on Thursday the Communications Ministry had violated
the law on the protection of competition by barring regional mobile
carriers from fourth generation (4G) network development.
In April 2011 regional carriers MetroTelKazan, Nizhni Novgorod
Cellular Operator, Kodotel, and Svyazinform complained the ministry
ignored their applications to participate in the development of LTE
networks.
The State Commission for Radio Frequencies at the ministry entrusted
LTE operation research to four major national carriers - MTS, Vympelcom,
Megafon, and Rostelecom.
FAS said on its website it had urged the ministry a year ago to engage
regional carriers in the distribution of radio frequencies for LTE
networks in order to promote competitive pressure on nationwide mobile
carriers. It also said the highest tariffs on mobile communications are
reported in regions where only nationwide carriers operate.
FAS said inaction of the ministry created advantages for nationwide
carriers and restricted competition on the market of mobile communications.
FAS said it is inadmissible "to consider the development of LTE
networks based only on proposals of Rostelecom, MTS, Vympelcom, and
Megafon and ignoring the proposals of other carriers."
The agency said it will shortly instruct the ministry to consider
applications of all the carriers and will submit a complex of proposals to
the government to "promote competition on the market of mobile
communications."