As a deadline for establishing networks using exclusively Russian equipment approaches, Nokia (NOKIA.HE) and Russia’s YADRO plan to form a joint venture to manufacture 4G and 5G telecom base stations in Russia, the two equipment makers announced on Wednesday.
Russia has announced that it will extend telecoms operators’ LTE (long-term evolution) network licenses until 2023 on the condition that they begin building networks using exclusively Russian equipment, as part of a larger effort by Moscow to promote local technology and IT services.
The two companies did not disclose planned terms or investments. The Kommersant daily previously reported, citing a source, that YADRO would hold a 51% stake in the JV, with Nokia taking the remaining 49%.
Russia’s Industry and Trade Minister Denis Manturov said the agreement between the companies would see the development of telecom equipment in Russia, with construction scheduled to begin in December.
Russian manufacturers currently account for 21% of the 168 billion roubles ($2.26 billion) of state telecoms equipment procurement contracts, Manturov said.
“The entire market is estimated at more than 400 billion roubles, so we see quite a serious potential for the development of Russian and localized joint projects,” he added.
According to Kommersant, other foreign vendors, including Huawei, Ericsson, and ZTE have also shown an interest in localizing equipment.
