Russia introduces substantial discounts on 5G spectrum to boost telecom sector

Russia’s Digital Development Ministry has introduced a draft order proposing substantial discounts on the radio frequency spectrum for fifth-generation mobile networks (5G). Specifically, the policy aims to significantly reduce costs for telecom operators by setting discount ratios of 0.001 for the millimeter-wave range (24.25-29.5 GHz) and 0.1 for other frequency ranges. Consequently, operators will pay ten times less for low-frequency ranges and 1,000 times less for millimeter-wave frequencies compared to standard rates.

Furthermore, the ministry anticipates that these reductions will accelerate the development of 5G infrastructure. By lowering the costs associated with deploying new base stations and advancing technologies, the policy is designed to enhance communication quality and support industry growth. Thus, the initiative is expected to foster a more dynamic and technologically advanced telecom sector.

Russia’s Digital Development Ministry plans for this order to take effect on 1 January 2025. The policy builds upon a previous discount scheme for LTE frequencies, which resulted in savings of approximately 20 billion rubles annually for operators. With LTE technology now firmly established and covering over 90% of the population, the ministry has determined that additional support measures are no longer necessary, allowing for a focus on advancing 5G technology.