Nokia Siemens Networks' Russian LTE joint venture under fire

LTE network equipment produced by the Wireless Technology Center, in which Nokia Siemens Networks holds a 75 percent stake, allegedly does not meet qualifications necessary to be considered "Russian-made," an issue that threatens to derail a network launched by Chechnya-based Vainakh Telecom. Telegeography reported that Russian law requires telecommunications infrastructure equipment deployed in the nation be manufactured by a company in which Russian nationals hold at least a 50 percent stake. The Wireless Technology Center reportedly has only a 25 percent Russian investment from Micran, a company based in Tomsk, Siberia. Vainakh launched LTE services using equipment from the Wireless Technology Center in Grozny, the Chechen Republic's capital but is not allowed to use the network for commercial purposes until the controversy over its network gear's pedigree is settled. Rusnano, a Russian nanotechnology firm, is reportedly considering acquisition part of NSN's stake to lower the latter's holding in the network infrastructure joint venture to 50 percent. For more, see this Telegeography article.


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