of development for mobile operators but there are high levels of subscribers in these areas demanding improved service.
As a result of the financial crisis, the operators are cutting their spends and limiting capital investments and marketing expenses. An offer to these providers of space on cell towers would allow essential funds to be freed up for the fundamental development of value added services and a greater focus on advertising, both of which are essential for growing their market share. Granted, currently, mobile providers do not share their own tower space with other carriers due to the notion of competition; however, an independent cell tower operator could allow both mobile and broadband wireless access carriers to share space without a conflict of interest. Russian Towers, LLC are intending to build a new infrastructure of telecom towers in the Russian Federation and developing CIS countries, as well as purchasing and converting existing towers and utilising these to relay mobile signals - a completely new concept in a burgeoning mobile market that is currently straining at the seams of its capacity. Once they have purchased and built new BTS across the Russian states they hope to secure deals with current mobile carriers to lease relay space on the towers to them as well as for broadband wireless access.
ABOVE: THE
MOBILE MARKET IN RUSSIA IS BURGEONING
AND ITS TELECOM TOWERS ARE
STRUGGLING TO KEEP UP WITH
SERVICE DEMAND
because no tower operator companies exist in the region yet.
Mobile network service penetration is massive in the Russian Federation. There is 125% market saturation, with people often owning more than one SIM-card and 63% of mobile subscribers are on a contract rather than pay-as-you-go which both serve as indicators that there is a high level of competition in the market. This competition leads to a constant demand for improvement in the quality of the service provided but also new areas of technological developments. Rural areas are relatively low on the list when it comes to areas
THE -ELEVATOR.COM THE -ELEVATOR.COM
The team at Russian Towers have over nine years experience each in the provision and development of wireless access services and the roll out of a wireless network in Russia’s various regions as well as telecom tower construction. The CEO, Maxum Zharenov has over 15 years experience working for the largest telecoms companies in the Russian Federation - Rostelecom and Svyazinvest and, more recently, was the CEO of start up operations for Virgin Broadband Russia who currently operate the WiMAX network whose far reaching presence stretches through 30 cities in the Federation. Having secured official letters of intent from several of Russia’s leading GMS operators, they are in a strong position to accomplish what they have set out to do. The company intend to roll out their operation not only in the strong Russian market but also across the various CIS countries.
A self-funded company thus far, they are now looking to raise between $11 and $12 million to build and buy out towers for two-plus carriers each for the Central, Volga-River and North East areas of Russia.
To find out more about Russian Towers LLC visit russiantowers.com
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