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Russia's TTK to spend $1.5bn on infrastructure by 2015

Russian telecommunications operator TransTeleCom (TTK), plans to invest $1.5 billion in infrastructure by 2015, but aims to shift focus towards small and medium-sized cities, and away from Moscow and St. Petersburg.

This is according to Sergey Shavkunov, head of international market analysis at TTK, speaking at Carriers World in London on Wednesday.

Moscow and St. Petersburg are the two main hubs of Russian telecoms, with significantly better coverage and higher fixed and mobile penetration than the country's smaller cities.

"And we have decided on fibre to the home," Shavkunov said.

He noted that while local and long-distance telephony are still the key services in Russia, Internet usage in increasing. "Bandwidth demand is driven by Internet growth," he said.

Shavkunov added that the company will be looking to expand its product line in the long-distance telephony space, boost capacity, and increase network usage by migrating to IP and Ethernet.

Increased capacity will be specifically important to enable TTK to serve large multinational corporations, and to "generate international voice traffic from customers," Shavkunov said.

Russia currently has 200,000km of fibre-optic backbone infrastructure, Shavkunov said. He estimates that the country's fixed telecoms market as a whole will be worth $19.5 billion by the end of this year.

Returning to the telco's $1.5 billion expansion plan, Shavkunov said TTK is aware of the economic risks involved in such a big infrastructure investment, especially in the current economic environment, but the company "hopes that the Russian economy is quite protected from the world crisis."

Источник: Total Telecom

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