FAO directors, heads of legal and in-house lawyers of telecommunications companies

Pepeliaev Group advises that on 5 February 2013 Order No. 284 of the Russian Ministry of Telecom and Mass Communications dated 6 December 20121 (the “Order”) entered into force. This has significantly changed the requirements for constructing PSTN.

This Order has almost completely changed the provisions of Order No. 97 of the Ministry of Telecom and Mass Communications On approving the requirements to constructing PSTN dated 8 December 2005. The following key amendments have been made.

  1. Communication hubs

The Order allows the following to be constructed and used: geographically distributed hubs (communication devices that are geographically remote from one another, which may be located in different municipal districts or different constituent entities of Russia); and hybrid communication hubs (communication facilities that combine the functions of switching systems’ equipment in various fixed-line and mobile telecommunications networks).

  1. Communication lines

To connect communication facilities together, it is possible to use equipment for switching data network(s) and data package routing.

  1. Shared use

The order allows telecommunications operators to share communication facilities under the agreements they have signed, as well as to build a data network using the communication facilities of another data network.

  1. Electric power supply

Requirements have been repealed with regard to building PSTN in terms of ensuring security of electric power supply to communication facilities that perform switching functions, points of connection and base stations of mobile networks2. These requirements established rather strict rules for providing electric power supply to communication facilities. The Order has established unified requirements for providing electric power supply to the relevant communication facilities: if there is a failure, standby autonomous power sources must ensure that communication facilities are able to operate for at least 4 hours under the load equivalent of the peak hour load.

  1. MVNO

MVNOs are released from their obligation to have points of connection within each regional constituent entity of Russia in which they operate, as well as from their obligation to have connections to PSTN, domestic long distance and international telephone networks.

Summary

The Order will foster the development of the telecom market and will help to reduce expenses of telecom operators both for maintaining and building telecom networks. It will also help telecom operators to apply state-of-the-art technologies and foster the development of telecom technologies (LTE) and business models (MVNO) that are new to Russia.

Order No. 284 of the Ministry of Telecom and Mass Communications dated 6 December 2012 On making amendments to orders of the Russian Ministry of Information Technologies and Communications and Ministry of Telecom and Mass Communications regarding equipment being applied and public switched telephone networks being build.

Approved by Order No. 32 of the Ministry of Telecom and Mass Communications dated 13 March 2007.