MOSCOW (WiMAX Day). The Russian telecommunications giant Comstar-UTS has signed an agreement with Intel to jointly develop a mobile WiMAX network in Russia based on the IEEE 802.16e standard.

Deployment of the network initially will be focussed on the Moscow region where Comstar has licenses for 2.5 ~ 2.7 GHz spectrum. The network is expected to be launched at the end of 2008.

As part of the agreement, Intel will provide Comstar with technical devices and solutions for embedded WiMAX devices. In addition, “Intel will work with device OEMs to drive high-volume WiMAX embedded notebooks and other devices (such as Mobile Internet Devices),” said an Intel spokesman.

Intel’s mobile WiMAX/WiFi chips are expected to be launched in mid-2008. A module for notebooks and ultra-mobile devices is code-named “Echo Peak,” and another solution for mobile devices is code-named “Baxter Peak.”

The next stage of Russia’s first mobile WiMAX network will be to select an equipment supplier to build the network. According to a spokeswoman for Comstar, a tender will be organised sometime in the future. The exact amount of investment committed for the network is as yet unknown, however sources say it might easily reach US$50 million.

Once the network is launched, Comstar will market the WiMAX service to residential and SOHO customers. Comstar said that WiMAX also might be included as an extension of its current ADSL services. This should be a winning strategy for Comstar. According to a report in CNews, most consumers in Moscow expect “fixed and mobile Internet in a single package,” and one in four broadband subscribers in Moscow use a laptop computer.

Combining mobile WiMAX in its service offering is a natural fit for Comstar where it is already the leading broadband provider in Moscow with 452,600 residential subscribers. The company currently has a market share of 33% and its operating strategy is to increase that to 50% by 2011.

The breadth of telecommunications services at Comstar include voice, data, Internet, pay-TV and other value-added services to residential and corporate subscribers and operators. The company has an extensive backbone network with last mile access to 98% of Moscow households through a a fiber optic SDH Network.

The agreement between Comstar and Intel to build a mobile WiMAX network is significant for Russia, and supports the advancement of WiMAX technology. Sriram Viswanathan, Vice President of Intel Capital added, “The effort between Comstar and Intel to bring mobile WiMAX to the people of Russia underscores the cost, performance and capability of this technology to give people a truly mobile Internet experience. The commitment to build mobile WiMAX networks continues to grow globally and we expect to see initial deployments in a number of markets starting in 2008 and growing throughout 2009 and beyond.”