Russian telecom giant Rostelecom offers smaller internet providers relief from surveillance costs. In exchange, it wants their customers — and most of their revenue.
Russia’s largest nationwide telecommunications operators, Rostelecom and TransTeleCom, have begun offering small regional providers service agreements under which the providers would hand over their infrastructure and subscriber bases, Kommersant reported after reviewing the presentations.
Russia's leading telecom firms, Rostelecom and TransTelecom, are proposing service agreements for smaller regional providers, according to reports from Kommersant. These agreements would involve the transfer of infrastructure and subscriber bases to the larger operators. In exchange for retaining 30-40% of revenue and avoiding surveillance costs, payroll expenses, and contributions to the universal service fund, regional operators would cede significant control.
TransTelecom's proposal, meanwhile, involves fixed virtual network operator (FVNO) models, which would eliminate the need for licensing and regulatory obligations. The smaller providers argue that these terms essentially transform them into installers for the larger companies.
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