Rostelecom plans to begin construction of a new fiber backbone linking Russia’s western and eastern borders with the countries largest cities and connecting the major European traffic exchanges with Mongolia and China. The TEA NEXT (Transit Europe – Asia) system will also link Vladivostok to Busan, Tokyo and Hong Kong via subsea cables.
Rostelecom announced a parity agreement with VEB Ventures (VEB. RF’s venture fund) each invest around RUB 6 billion in Atlas, an operating company formed for the construction. The total investment is expected to reach around USD 650 million in the next few years with a view to finance the project up until 2025.
As noted by Russia’s Deputy Prime Minister, Dmitry Chernyshenko, TEA NEXT will be instrumental in shaping the national digital economy and boosting innovation.
Construction on the first segment TEA NEXT started in the summer of 2020 running from Moscow via Saint-Petersburg through to the Latvian border.
Mikhail Oseevskiy, President of Rostelecom: “TEA NEXT will be instrumental in delivering our ambition to become the leader across all segments of the telecom ecosystem. With its technically advanced new generation features, the project will provide the critical foundation for the national backbone fiber optic infrastructure in the next thirty years. Atlas, in turn, is set to become the leader in fiber optic services for national companies, as well as the largest international operators and OTT players. The main feature of the project is the brand new advantageous route from West to East of Russia with stations in key cities along the way.”
