They're probably skeptical of a lot. It's Russia. Admittedly, there is a lot of corruption there. That doesn't mean GTE won't make a lot of money though.
Re: Russian Project
by: rothingham (<50/M) 01/10/06 04:16 pm
Msg: 66683 of 66683
Anyone here know why a local Russian paper would be so skeptical of this deal??
Posted as a reply to: Msg 66665 by rothingham
Some of the hottest mutual funds of 2005 were funds that focused on Russian investments. I don't know why people are so sour on doing business in Russia, or anywhere else for that matter. GTE works primarily outside the US, so you'd better get used to it if you're long. There's a ton of money out there!!!
You've got that right. Here's a refresher for those who don't believe the Russian market is significant:
Investors Lose Mobility
//�Spending money on a wire connect and the Internet
Russian IT and Communications Minister Leonid Reiman summed up the results of his agency's activities in 2005. The biggest success was a doubling of investment from abroad in the Russian communications industry. The targets of that investment have also changed. Instead of cellular communications, investors are now more often in fixed communications and the Internet.
The information yesterday was predictable. All sectors of the IT and telecommunications businesses grew. The volume of the communications market, including all forms of electronic communications and the post office, amounted to $24.2 billion, 31 percent larger than last year. The business of cellular operators grew the most. They have 120 million subscribers at the end of 2005, 70 percent more than in 2004. In monetary terms, the volume of the market for mobile communications reached $10.7 billion. The number of computer users rose by 16 percent to 27 million, which led to a 20-percent increase in Internet traffic. The Internet access market is worth $1 billion per year. The most impressive of Reiman's statistics was the $6.9 billion invested in the Russian telecommunications sector, with foreign investment doubling to reach $2.6 billion.
Analysts say that the growth in foreign investment was in large part due to the fact that Western investors began to look beyond the cellular market to fixed communications. A record number of non-privatization deals in that sector were made in 2005. Internet access and data transmission will be the fastest expanding sectors of Russian telecommunications in coming years and will be growing by 25 percent per year by the end of the decade. The IT and Communications Ministry estimates that the value of the market will rise from $1 billion this year to $2.61 billion in 2008. Market analysts agree with the ministry's estimates, or make even more optimistic forecasts.
You miss the point. Russia is very real. They have a very real infrastructure, with very real companies. Unfortunately this deal was done with a "make believe" - that is the point of the article OBVIOUSLY.
Previous news on 10 January, 2006, the following news CompTekSedikom.Race Communication One additional fantastic project 10 January ("Telecom-forum") Yevgeny Yevdokimenko The end of the past - the beginning of the present is age-long they are noted in Russia next immense, but, unfortunately, fantastic projects with respect to the guarantee of population of our country with wide-band access. On this sequential project in the very end of the past year declared the small American company GlobeTel Communications. From its communication of 30 December, 2005, it follows that to the middle of 2008 in 30 large Russian cities must be built the wide-band wireless networks a la wiMAX. To finance this fantastic project undertook Moscow OOO Internafta, which is created by the unnamed important Russian investors specially under this project. OOO is assembled to put in the building 30 urban networks of wide-band wireless access (SHBD) $600 to million. Sum impressing not only for the market SHBD, but also for entire domestic telecommunication market. There is hope, that the investors, judging by the name, company from the petroleum sector, will lose not all these money, but only part of them. The fact is that the money paid out to American contractor by several transhami after the completion of the separate stages of building. And when investors will understand that a similar grand project in today's Russia is not realized, they will cover investment crane. As Russian investors believed promises to relatively small American company, it is not absolutely understandable. In the explanations apropos of agreement, published yesterday, the Americans write about the fact that they "ulamyvali" of Russian businessmen and government officials during the year. And only after the successful demonstration of equipment HotZone 4010 in the State Duma last fall was located people, which founded OOO Internafta and agreed to finance project.
About the fact that these people are very distant from the problems of the realization in Russia of wireless projects, speaks already the fact that not in one document, dedicated to concluded agreement, absolutely nothing it is discussed the frequency problem in our country. Strictly speaking, even it is not known, in what ranges works system HotZone 4010, which, on the assertion of representatives GlobeTel Communications and its daughterly enterprise Globetel Wireless, supports standards WiMax (802..16e), Wi- fie and DECT. Judging by the published statements of the representatives of these two companies, Russian investors first of all enraptured the possibility of connection to the base station (BS) HotZone 4010 with the aid of usual DEccT- telephones and personal devices (for example, noutbukov and palmtops, KPK), equipped with adapters Wi- fie. Certainly, this is completely attained in the hall of the State Duma, where was conducted demonstration, to office or apartment. All users DEccT- telephones and zones Wi- fie know about this. However as to realize this possibility in the urban network (at the removal from BS at least on 300 m), hardly will say although one specialist in the region SHBD. Especially because representatives GlobeTel declare, that in the urban network on equipment HotZone 4010 is not assumed the building of the expensive towers for positioning the antennas BS, and by users in the majority of the cases will not be required even special wireless user devices with the cost only $50 - they can obtain the access into the network with the aid of the devices, equipped with the standard means of the access into network Wi- fie. In other words, differences between HotZone in company GlobeTel and by zone Wi- fie it is not outlined. Globetel Wireless Promises to begin the building of the first 10 networks SHBD (including in Moscow and Petersburg) already on 1 April of present year (by the way, very symbolic date), but in this case absolutely nothing it is discussed the prospect of obtaining the frequencies for them. But to this, if we, of course, do not use substantial part of $600 million. to the bribes, can leave the years. Russian investors did not confuse the fact that in Globetel Wireless there is no yet not one client. Americans only assert that their equipment will be tested in the experimental zones in Mexico, Malaysia, Peru, Columbia, China, Argentina and Germany. And the solution about the beginning of commercial projects there will be only accepted after the completion of these tests. Globetel does not reveal the names of its Russian investors. Is mentioned only Maxim chernitsov, who is called one of the main founders of firm Internafta. This name nothing tells experts in the region SHBD. Possibly, before it was occupied by other entirely matters. In the yesterday's explanations apropos of agreement is named also the operator of future network SHBD - company NuTel Wireless. It will to 100% belong to the "European joint enterprise" (most likely to sequential offshoru), which on parity principles will manage Globetel Wireless and Internafta. In the first three years of the operation of network NuTel it must decide fantastic task - to collect 10 mln. subscribers, in essence of particular users. After this, the monthly operating income of operator will have to be from $350 million. to $500 mln., which again attests to the fact that participants in the project completely are not oriented in the realias of Russian telecommunication market.