Mobile Telesystems (MBT), VimpelCom (VIP) Enter Spectrum Sharing Agreement

November 28, 2016 7:30 AM EST
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Mobile TeleSystems PJSC (NYSE: MBT) and VimpelCom PJSC (Beeline brand) announce the start of spectrum sharing in 4G-network in Cherepovetz (Vologda region) which allows to increase data transfer speeds available to the subscribers at peak speeds of 150 Mb/s. Vologda region became the first region where two operators united their spectrums within a large-scale project to jointly construct and utilize LTE networks in more than 30 regions in Russia.

Sharing of the operators' 10 MHz bandwidth in the 2600 MHz range spectrums will permit an increase in data transfer speeds over LTE networks up to a peak speed of 150 Mb/s.

In December 2015, MTS and VimpelCom signed an addendum to their agreement on the joint planning, development and usage of LTE networks, which they originally concluded in 2014 to unite their spectrum bands in 20 regions in Russia. In 2016, the list of the regions was expanded to 31. Apart from Vologda region, in 2016-2017, the operators plan to unite their spectrum resources in other regions.

The development of the project became possible due to adoption of amendments to the law "On Communications" that legislated the operator's right to jointly utilize spectrum.

"After two years of execution, our ambitious project with VimpelCom is entering its final stage - during the next year, we'll unite our LTE networks on shared spectrums in more than 30 regions. The project allows us to minimize costs on construction and utilizing of the base stations, decrease the timeline for network launch and what is more provide our subscribers with the higher mobile internet speeds in modern LTE networks", noted Andrei Ushatskiy, Vice President for Technology and IT.

In December 2014, MTS and VimpelCom signed a partnership agreement to jointly plan, develop and use LTE networks in Russia in 36 regions in Russia. Under the agreement, in 2014 - 2016, MTS develops shared mobile data networks in 19 regions in Russia, while VimpelCom constructs networks in 17 regions.The agreement will last seven years with an option of prolongation. During this period, operators will share base stations, sites, transport networks and other infrastructure. The agreement will not preclude either company from develop their own networks in addition to shared infrastructure in the designated regions.



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