Russian mobile-phone rivals team up to share 4G expense

Russia’s three largest mobile-phone companies, OAO MegaFon, OAO Mobile TeleSystems and OAO VimpelCom, agreed to work together to develop a nationwide fourth-generation broadband network, Bloomberg.com reported.

The three companies, plus long-distance operator OAO Rostelecom will share the wireless 4G network being built by Moscow-based Yota, Communications Minister Igor Shchegolev said today.

Yota, the telecommunications brand of Moscow-based Scartel LLC, currently provides 4G service in five Russian cities.

The technology offers faster speeds for Internet use on computers and mobile phones than older so-called 3G networks. The company aims to have the service available initially to more than 70 million Russians in 180 cities by 2014.

“Building new networks is becoming more expensive, and customers are used to the price of these technologies decreasing,” Shchegolev told reporters in Moscow.

“Now the network will be deployed faster, each company will save on investment and users will get the service much cheaper,” he added.

Russian Prime Minister Vladimir Putin oversaw the signing of the agreement by the heads of the wireless companies today at Yota’s Moscow office.