Russia's Information Technology Ministry recently said that 3G licenses are likely to be released in the fourth quarter of 2005 at the request of operators. Allocation of 3G licenses were previously scheduled for 2006 at the earliest, but operators had urged the government to accelerate the timetable. According to plan, 3G licenses will be given for free to operators who pledge to make more network investments. UMTS (Universal Mobile Telecommunication System) technology has been chosen for such networks. 

 

The government's decision to advance allocation also comes with worries. First, operators in Western markets made massive investment in 3G infrastructure to find themselves mired in financial burdens. Also, imbalanced development will likely arise as Russian operators may concentrate building 3G networks in Moscow and St. Petersburg, two of the most competitive markets in Russia, while stalling development of GSM (Global System for Mobile Communications) networks in other parts of the country. 

 

The earlier allocation is a more aggressive attitude toward 3G in line with the government's bigger plan on reassigning radio frequencies shared by civil enterprises and the military, which accounts for 69% of all frequencies. Currently, civil entities such as mobile operators and digital TV companies constitute 9% of all frequencies while the military has 22% for its own use. 

 

Ideally, the Russian government would like to appropriate the shared frequencies for civil applications, yet hurdles remain. While  the 2GHz, 3.5GHz, and 5.6-5.8GHz bands have been allocated for GSM, 3G, and wireless internet access via Wi-Fi and Wi-Max, they are also used by military antimissile and jet communications.

 

Moreover, operators will have to pay more for frequencies when the Russian government implements the allocation plan. Charges for frequencies will vary, depending on the range and the coverage.