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Russian WiMAX Network -
GlobeTel |
GlobeTel Announces
$600 Million WiMAX Network Installation in Russia
Other Topics: WiMAX National
Network - Motorola, Chief Financial
Officer - Trango, WiMAX Power
Amplifier - Sirenza, Motorola Canopy
Wireless Broadband
GlobeTel Wireless
January 3, 2006
Wireless users in the Russian Federation will have access to a $600
million WiMAX network, as a result of a binding agreement between
GlobeTel Communications Corp., and LLC Internafta of Moscow, Russia.
GlobeTel’s wireless subsidiary will install wireless communications
networks in 30 cities throughout Russia that will provide VoIP and
related broadband technologies. Internafta will pay GlobeTel four
construction payments totaling $600 million to install a variety of
proprietary networks in 30 of Russia’s largest cities, beginning with
Moscow and St. Petersburg. The networks will establish high speed
wireless service throughout the chosen cities with the ability to
provide voice over IP. When complete, GlobeTel will manage the network
and will retain a continued 50 percent ownership in the network’s
operation. Installment will roll out in three stages of 10 cities each
over the next 27 months. |
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The agreement is the product of over six months of key meetings with
Russian government officials, senior members of the Russian
Parliament, and various branches of the Russian telecom and technology
establishment. In October, GlobeTel CEO Timothy Huff, GlobeTel
Wireless President Uli Altvater and Sanswire President Bob Jones
demonstrated a working version of the HotZone 4010 equipment that will
support the new network. The demonstration showcased the equipment’s
capability and usability when it established Internet and DECt phone
connectivity inside the Russian Parliament building, thereby helping
launch negotiations with a group of Russian investors that resulted in
the finalized agreement.
GlobeTel Wireless President Altvater described the venture as a “very
large undertaking that will utilize the skills of more than 1,000
people in Russia, Europe, and the United States,” while Maxim
Chernizov, one of the founding principals of Internafta, expressed
optimism about the positive impact the network will have on the
Russian Federation.
"Completely apart from the obvious economic rewards associated with an
investment in this exciting new communications technology, we are most
proud of the social, educational, and community benefits that we are
able to facilitate as part of the dramatic quality-of-life attributes
which are rapidly emerging throughout the Russian Federation,"
Chernizov said. "This initial step with GlobeTel -- along with other
very significant technology breakthroughs to follow -- will prove to
be significant for all of us in the relatively near-term."
Russia is increasingly garnering attention as one of the fastest
growing segments of the technology market. A Dec. 13 Research and
Markets report found that, while more mature markets such as North
America enjoy the most telecommunications revenue globally, the growth
rate in those markets is stagnant, relying on the introduction of new
services for growth. Although the European and Middle Eastern/African
markets enjoy a higher growth rate, the underdeveloped markets
including Russia, Latin America, and the Caribbean are posting faster
growth scenarios than any other markets. The report suggests that the
combination of a rapidly expanding middle class and increased
privatization of key industries has resulted in a higher, and delayed,
demand for telecommunications -- specifically wireless -- services.
(See Russian Telecommunication Market is Now One of the Fastest
Growing after the Industry Overcame Bankruptcies and Scandals.)
Other industry members have taken notice of the Russian Federation’s
telecom growth. In July, Russian company Comstar deployed BroadSoft’s
hosted VoIP application software to its business customers and in
June, Alvarion Ltd. announced plans to extend its BreezeMAX products
to include the WCS (2.3 GHz) and BRS (2.5-2.7 GHz) frequency bands for
North America, noting that these frequencies are relevant in other key
regions such as Russia. (See Comstar Deploys Russia's First Hosted
VoIP Service and Alvarion Announces WiMax Products for North America.)
GlobeTel’s CEO Huff described the opportunity to implement the
network.
"It is beyond exciting to be able to bring this level of connectivity
to Russia," Huff said. "Russia will, quickly and at a relatively
modest cost, have a wireless infrastructure that will rival any in the
industrialized world. This presents an amazing opportunity for us, for
Russia, and for our Russian partners.”
“The Russian Internet market is severely limited by a lack of
infrastructure and by the high cost to individual users of obtaining
high speed Internet access, even in those relatively rare cases where
it is available,” Huff continued.
The $600 million agreement supplements GlobeTel’s recent growth
strategy. On Dec. 7, the company signed a Letter of Intent to provide
wireless services in up to 20 cities in Mexico and on Dec. 22, it
signed a marketing agreement with Travelex Currency Services, Inc. to
expand Travelex’s money transfer service to thousands of retail
merchants throughout the United States. (See GlobeTel Announces Letter
of Intent with Marcatel S.A. de C.V. and GlobeTel Announces Marketing
Agreement with Travelex.) |
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