Russia's Start Telecom to Start Construction of WiMAX Network

MOSCOW, June 1 (Prime-Tass) -- Russian telecommunications operator Start Telecom plans to start the construction of a WiMAX network soon, which is projected to operate in five cities by the end of this year, the company's Executive Director Pavel Kaplunov said, Vedomosti business daily reported Thursday.

Kaplunov estimated the necessary investments at US$500,000 per city.

Oleg Tainov, marketing director of Enforta, which also plans to build a WiMAX network, estimated the necessary investments at $2 million per city, adding that the monthly average revenue per user (ARPU) of a WiMAX user is estimated at between $150 and $200, the daily reported.

Meanwhile, Start Telecom has completed in the Central Federal District the construction of a backbone network and access nodes in 17 cities and 82 towns and plans to launch the network in July, Kaplunov said, adding that the network has a transfer capacity of 1Gbit/sec, the daily reported.

The company invested $8 million in the construction of the network, about one third of which the company invested from its own funds, Kaplunov said, adding that this year the company plans to invest $30 million to $35 million in the construction of a similar backbone network in the Volga Federal District, as well as in acquisitions.

Start Telecom offers Internet, telephony and virtual corporate network services. The company has about 1,500 corporate clients, the daily reported.

WiMAX allows the transfer of data at a speed of up to 40 Mbit/sec at a distance of up to 10 kilometers. To connect to the network subscribers have to purchase a receiving terminal, which usually costs $200-$350.

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Posted to the site on 1st June 2006