Megafon, Rostelecom, MTS and Vimpelcom sign MoU to jointly develop 5G in Russia

Moscow, Russia – December 11, 2019 – Rostelecom PJSC (MOEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that Megafon, Rostelecom, MTS and Vimpelcom have signed an MoU to consolidate efforts in jointly developing and optimising the usage of a 5g mobile network in Russia (5G/IMT-2020).

The counterparties have been considering a number of options for the creation of 5g radio subsystems within key bandwidth ranges with spectrum deficit, including an option to set up a joint venture whereby equity would be equally distributed between operators.

The joint venture will focus on the research and development of electromagnetic reconcilability as well as organizational and technical actions to free spectrum between the ranges of 700 МHz, 3.4–3.8 GHz, 4.4–4.99 GHz and 24.25–29.5 GHz l, while looking at other possible bandwidth for the rollout of 5g. The JV will not be a telecom operator.

Activity among the JV players will centre on cleaning up the frequency spectrum to a sufficient degree that will enable participants to rollout their own 5g network. The four operators will be able to jointly use frequency spectrum allocated for the JV.

The counterparties are proceeding with completing legal documentation required to execute the JV, which includes obtaining corporate and regulatory approvals to establish the joint venture.