The Project's Economy

The proposed solution is many times more efficient than the classical model of a digital broadcasting network:

The CAPEX of the DVB-H network deployment in France in 2007 amounted to €185 mln (6,660 mln roubles) Building a similar network according to the MFI Soft technology would require less equipment expenses amounting to €50 mln (1,800 mln roubles).

The smaller investments may pay out quicker due to both the growth of the operator’s equity value and DVB activities.

Operation costs of a single all-Russian channel in 2007 amounted to 2,800 mln roubles (€80 mln).

The price of equipment for a nationwide DVB-T network built around the MFI Soft technology is 17,000 mln roubles (€470 mln). These estimates have been made by the example of the MTS network providing nationwide coverage with 23’500 base stations.

The project costs are comparable to current business development investment of mobile operators:

Mobile TeleSystems (MTS) is to invest up to 25,000 mln roubles (€670 mln) in 3G networks within three years. A substantial share of this amount will be spent on the upgrade of communications, which will make them suitable for parallel DVB-T broadcasting.

Additional Advantages

The mobile operator participating in the project implementation does not make any non-core investment in buildings and structures etc, but rather increases the efficiency its core assets.

The solution is based on the industry-standard DVB-T(H) technology and mass production equipment, which minimizes technology-related risks of the project.

The project partner MFI Soft is a leading developer of telecommunication software in Russia, and possesses the expertise necessary for creation of the required software components of the solution.

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