Rostelekom : Rostelecom and Nokia establish a joint venture

Rostelecom and Nokia announce creation of the joint venture "RTC - network technologies", which will focus on forming a portfolio of innovative, high-tech infrastructural solutions built on Nokia's technologies in integration with domestic advanced developments.

Creation of the joint venture is a logical step following the signing of the memorandum on cooperation between Rostelecom and Nokia in May 2018, in the frame of St. Petersburg International Economic Forum.

The joint venture's portfolio of products and services offers to its customers comprehensive solutions for backbone network infrastructure, data centers' network management, virtualization of corporate networks, Internet of Things and next-generation mobile communication networks.

It is planned that on a basis of the joint venture an innovations' platform for advanced foreign and domestic solutions for the telecom industry and corporate clients will be formed. Advanced technologies of the joint venture include but not limited to private wireless networks (P-LTE, P-IoT), certified SDN and SD-WAN networks, infrastructure for IoT and 5G networks.

It is planned that in the future the joint venture will also serve as an incubator for domestic start-ups, this enables joint venture in the mid-term to become a leading supplier of advanced domestic networking and could solutions for the infrastructure of Rostelecom, as well for large state and enterprise customers.

The joint venture's parties agreed that Nokia will provide its expertise and portfolio of products, as well as assist in attracting funding for promising areas of joint venture's activities. In the frame of the joint project, Rostelecom invests in the expertise of the Russian technological companies associated with Rostelecom, as well as ensures the priority participation of the joint venture in the development of the technological landscape of its network.

It is important to notice that depending on the "RTC-Network technologies" investment program aiming development its own products, Nokia will consider a targeted financing for an implementation of such program. Anticipated funding from Nokia could be up-to 10 billion rubles in total between 2019-2022 and could be used to finance the development of JV's own products, acquisitions and equity's participation of the Russian technological companies as well as other purposes.

Mikhail Oseevsky, President of Rostelecom:

"We are pleased to further expand this mutually beneficial cooperation with our strategic partner - Nokia. The joint venture will become a competence center for implementing joint projects by leveraging the synergy of Nokia's expertise and portfolio of products and Rostelecom's experience in complex implementation of federal-scale projects, which will be supported by solutions developed in the joint venture."

Alexander Aivazov, Vice President for business development of Rostelecom:

"The new joint venture will provide a serious inorganic growth of the technological landscape of Rostelecom and will be an important driver for new complex products for the Enterprise business of our company,".

Demetrio Russo, Vice President of Nokia in Eastern Europe:

"The creation of the joint venture with Rostelecom is a result of the partnership between our companies in development of innovative communication networks, including 5G. Both companies are joining forces to provide their customers in Russia with innovative and best-in-class products, leveraging the strengths of each partner. Nokia has the most comprehensive portfolio of innovative solutions in the industry, which fully meets the challenges faced by the service providers and the industry ecosystem on the way to building a digital society and digital economy."