SAINT PETERSBURG (WiMAX Day). The Russian telecommunications company Peterstar (a subsidiary of the Moscow-based WiMAX operator Synterra) announced last week that it will begin to provide WiMAX services in St Petersburg.

According to a company press release, Peterstar will lease network infrastructure and 3.5 GHz spectrum from Start Telecom. The network presently has 11 base stations that provide coverage over 60% of St Petersburg.

The network presently utilises NextNet Expedience equipment from Motorola.

Peterstar will offer pre-WiMAX services as a virtual network operator (WVNO), using a business model similar to “mini-WiMAX” that was launched last year by Synterra across Russia.

Synterra own and operate a significant amount of WiMAX spectrum throughout Russia, but it does not have licenses to frequencies in the St Petersburg region, said Synterra spokeswoman Ekaterina Andreeva.

Under the agreement with Peterstar, Start Telecom will increase their network capacity to cover up to 80% of the city. The company will deploy 11 additional base stations to support this growth, which is mainly targeted to the corporate customers of Peterstar. The cost of the network expansion is estimated to be USD 3.6 million.

Start Telecom operates one of the largest fibre-optic backbones in Russia, which stretches 10,000 km, and allows the company to provide services to nearly half of the Russian population.

The new WiMAX network is expected to expand the reach of Peterstar’s network to “customers that require the advantages of WiMAX,” said a Peterstar press release. Such customers typically do not want to make the investment in a leased line, need greater speed, mobility between offices, or simply want independence from other connectivity solutions.

In the future, the company plans to work with Start Telecom to extend to this project. “St Petersburg is the first phase in the development of WiMAX infrastructure in the Northwest [region],” said Ilya Kravchuk, Acting General Director of PeterStar.

This announcement prompted speculation in the market that Synterra will soon announce an acquisition of Start Telecom, however the company would not comment on such speculation.

Synterra is owned by PromSvyazKapital, and through its subsidiaries operate in 22 regions of Russia, providing nearly 45% of the operator’s access to the Internet in Russia.