5G Network Rollout in Russia Expected to Cause Major Losses for Telecom Operators

Telecom operators in Russia face significant hurdles in developing 5G technology. The allocated frequencies do not increase speeds under the new standard but merely display a 5G icon on smartphone screens. According to Kommersant, citing MTS research, operators risk losing tens of billions of rubles in the consumer segment under current conditions. Ixbt.com reports this. reports .

Total capital expenditures for 5G deployment by 2036 could exceed 335 billion rubles, with 286 billion rubles attributed to the B2C segment. Forecasts indicate this sector alone is expected to generate losses of 84 billion rubles. Conversely, the corporate B2B segment could yield up to 63 billion rubles in profit due to industrial and infrastructure applications.

The primary issue lies in the 4.8–4.99 GHz frequency band. This range requires 1.5 to 2 times more base stations than the optimal 3.4–3.8 GHz band for 5G. Notably, the optimal frequencies are currently occupied by security agencies. Under these conditions, speed improvements are minimal, and users will only see a nominal 5G indicator.

Additional challenges stem from a shortage of domestic equipment and compatible devices, which currently account for only 3%. Plans call for the first commercial 5G networks to launch in Moscow, Saint Petersburg, and Novosibirsk in 2027, expanding to all million-plus cities by 2029. Furthermore, iPhone users are unlikely to gain access to this technology.