Operator Plans $200 Million WiMAX Investment in Russia

Icon Private Equity plans to invest $200 million into the development of WiMAX networks in Russia's regions, said Kirill Dmitriev, the fund's Managing Partner.

The fund plans to launch the operator's commercial services by October 2009 and intends to cover a population of 20 million by the end of 2009.

Huawei was awarded a contract for supply of the equipment for the new network, while additional funding for network deployment will be provided in a form of loans from China's financial institutions.

Sergei Avdeev, former Executive Vice President of VimpelCom, is appointed as the Chief Executive Officer of the new company.

"The Russian government takes unprecedented steps to support foreign direct investments in the innovative industries and creates an easy path for the inflow of funds to the Russian economy," concluded Mr. Dmitriev.

This investment is a part of Icon's broader strategy of becoming the major WiMAX operator across the Commonwealth of Independent States (CIS), a strategy that has already seen the group invest $100 million in UHT, a WiMAX operator in Ukraine.