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MTS: The Ethernet Backhaul Difference

Sergey Zlobin and Oleg Larionov, of MTS, chat with Tellabs’ Aleksandr Paulichek and Petri Markkanen

Russian operator taps Tellabs Mobile Solutions to improve economics and flexibility of its

3G mobile backhaul network. By Joan Engebretson

Russian network operator Mobile TeleSystems (MTS) has big plans for its 3G mobile network based on HSPA radio technology. The network, which ultimately will cover virtually all of Russia as well as several neighboring countries, will support speeds as high as 21 Mb/s, enabling it to serve as the only broadband connection for many MTS customers. MTS is not alone in addressing the mobile broadband

market, however. Offering attractive pricing and services is key to retaining their competitive position. To help achieve that goal, the company has chosen the 8600 Managed Edge System to drive IP-based

Tellabs ® backhaul throughout a large part of its network. MTS 8 | TELLABS INSIGHT Q1

estimates that the move has enabled the company to save about 40% on its access and aggregation costs—a number that will climb to 50% when the company moves both fixed and mobile traffic onto the network.

Moving to IP/Ethernet Backhaul “Our main mission is to provide the best customer experience,” says Oleg Larionov, director of the transport network department for the corporate center MTS Group. “What we’re trying to highlight and to show by our advertising and our services is that we deliver the best services, the best speeds and the best product.” MTS was founded in 1993 by a group of investors that

included Moscow fixed-line operator MGTS, along with Deutsche Telecom and Siemens. Since then, the company has grown organically and through acquisitions. The company now offers service throughout Russia and many of the former Soviet Union republics, with subscribers topping 100 million. The MTS 3G network, which is about 60% deployed,

covers Russia, Uzbekistan, Belarus and Armenia. In addition, the company is trying to get a 3G license for Ukraine. In large parts of MTS’s service area, fixed broadband penetration is quite low. As of 2010, only 9.6% of the Russian

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