drone pilot industryMTS and Ericsson Enter Strategic Partnership to Develop Private Networks in Russia

October 29, 2021by helo-10

MOSCOW, Russia – Mobile TeleSystems Public Joint Stock Company (NYSE: MBT, MOEX: MTSS), Russia’s largest mobile operator and a leading provider of media and digital services, and Ericsson (NASDAQ: ERIC), have signed an agreement to enter into a strategic partnership with the aim of developing private 5G-ready networks (dedicated networks) for industrial enterprises in Russia.

Since 2019, MTS together with Ericsson have successfully implemented more than 15 pilot projects for private networks across various industries. The two companies have also signed contracts for the construction of commercial LTE / 5G-ready networks in Russia for multiple leading Russian enterprises, including SIBUR, EVRAZ and Severstal. In September, MTS and Ericsson built the first commercial dedicated network in Russia for Polymetal, one of the world’s largest producers of gold and silver.

In Russia, there is increasing demand for dedicated private networks from various industries and, in particular, from the mining and energy sectors. The goal of the strategic partnership between MTS and Ericsson is to meet this demand and to jointly support the development of Industry 4.0, which will be built on the advanced network infrastructure that LTE / 5G networks provide. MTS brings licenses for the provision of mobile communications services for the deployment of dedicated networks of enterprises, along with its experience and capabilities in the creation of mobile communications networks and IT infrastructure, to the partnership. Ericsson provides complete portfolio of products and solutions of LTE / 5G dedicated networks in all frequency bands, as well as global expertise in deploying networks for needs of enterprises from different sectors.

Inessa Galaktionova, MTS First Vice Presdient for Telecommunications, commented: “This agreement signals a new era of cooperation between MTS and Ericsson. Dedicated networks are vital infrastructure that Russian enterprises need for digitalization and automation of key production processes. We will leverage the experience gained over the last two years in creating dedicated technological networks to provide customers with integrated, turn-key solutions for multiple technological needs in various industries, including mining, metallurgy, oil & gas, petrochemistry, energy, engineering, and transport and logistics.”

Sebastian Tolstoy, Head of Ericsson in Russia, said: “We are pleased to have this opportunity to make a significant contribution to the development of Industry 4.0 and strengthen the competitiveness of enterprises in Russia. We believe that all industries, without exception, will benefit from the adoption of 5G technologies and diverse 5G use cases. Dedicated networks with ultra-high bandwidth and super-low latency allow enterprises to run multiple use case scenarios on a single network, help increase the safety of people, and improve the environmental friendliness of production. From our work with a variety of Russian companies we see the mining and energy sectors are ready to deploy and actively operate dedicated networks, and in the near future we expect demand from other industries to grow.”

Dedicated networks provide a fit for purpose, high-performance and agile private network, guaranteeing enterprises the connectivity and security they need with either 4G or 5G cellular connectivity. Such networks are designed for the digitalization and automation of critical production and technological processes, as well as the integration of various elements of production (such as wireless sensors and devices, IIoT solutions and controllers) into the IT infrastructure of an enterprise into a single closed ecosystem. Isolation from public commercial communication networks provides increased security, reliability and security of production and IT processes.

All Ericsson LTE equipment supports the fast and scalable transition to 5G for a variety of scenarios, deployed according to the needs of a particular customer. Among the most demanded scenarios are remote control and management of transport and equipment, enterprise assets monitoring, production control automation, drone control and digital twins.

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