Russia’s Ministry of Digital Development is in talks with the country’s four major mobile operators — MTS, VimpelCom, MegaFon, and Tele2 — about a new approach to 5G spectrum allocation that would bypass auctions entirely, according to reports in Kommersant and Vedomosti citing unnamed industry sources. Under the proposal, carriers would receive frequencies in the 4,400–4,990 MHz band at no cost in exchange for a binding commitment to launch 5G networks in all 16 of Russia’s million-plus cities by 2031. The ministry confirmed the talks are ongoing, though it stopped short of confirming the reported terms, and said no final decisions have been reached.
The shift in approach follows the collapse of a previous auction scheme last October. In the summer of 2025, Digital Development Minister Maksut Shadayev signed an order to hold a spectrum auction, offering two lots in the 4,800–4,990 MHz band with starting prices of 26.2 billion and 21.2 billion rubles (roughly $285 million and $230 million at current exchange rates). All four operators declined to participate. Their calculations showed that spectrum acquisition costs would not be recouped within 20 to 30 years — a prohibitive timeline given that the licenses themselves ran for only ten years. Shadayev ultimately withdrew his own order, and negotiations resumed on fundamentally different terms. The proposed no-auction deal would cover a wider frequency range — 4,400–4,990 MHz — than the failed auction had offered.
The Military Frequency Problem
Behind the current impasse lies a long-running structural obstacle. Virtually every major 5G market — the United States, China, South Korea, and much of Europe — has built its networks on the so-called “golden band” of 3,400–3,800 MHz, which offers an optimal balance of range and network capacity. In Russia, that band has been off-limits for civilian use since 2017, occupied by satellite systems operated by military and security services.
Repeated efforts to reallocate these frequencies have been systematically blocked by the security establishment. In 2019, President Vladimir Putin effectively resolved the dispute in the military’s favor, cementing their claim on the band. By 2023, a ban on civilian use was written explicitly into the national Telecom Industry Development Strategy through 2035, closing the door on renegotiation for the foreseeable future.
Substituting the Golden Band Carries a Price
Operating in the 4,400–4,990 MHz alternative requires between 1.5 and 2 times more base stations than the standard 5G band to achieve equivalent coverage — a direct multiplier on construction costs.
Device compatibility is another unresolved issue. Samsung’s globally distributed flagship handsets do not include hardware support for the band. Apple’s devices could theoretically be activated for it, but only with explicit software authorization from Apple itself — authorization that, as of early 2026, has not been granted for Russia. In short, most Western-brand phones currently available would not work on Russian 5G networks without manufacturer cooperation, while Chinese-made devices would likely work without issue. Xiaomi, Honor, and Huawei handsets natively support the relevant frequencies.
Infrastructure is a further constraint. Yadro, the Russian state-backed telecoms equipment maker, only began serial production of domestic base stations at its Dubna facility outside Moscow in December 2025. The units currently rolling off the line support GSM and LTE standards; a software update, rather than a full hardware replacement, would be required to enable 5G. That distinction matters — it means operators would not need to replace existing Yadro units, reducing the eventual cost of 5G deployment. However, it remains unclear when such software will be ready or when production volumes will be sufficient for nationwide deployment.
Timelines in Dispute
The Ministry of Digital Development says it expects the first commercial 5G networks in Russia to launch before the end of 2026. MTS has stated it is technically ready to proceed.
VimpelCom, which operates under the Beeline brand, has struck a more cautious note. CEO Sergei Anokhin points to 2028–2029 as the more realistic window — the period when domestically produced 5G-capable equipment should become available in volume.
If the no-auction framework is finalized, operators would receive spectrum without upfront payments but with binding commitments to cover all 16 major cities by 2031. That changes the economics of the project significantly. Free spectrum may solve Russia’s 5G financing problem. It does nothing to solve its 5G technology problem.
