Russian mobile calls, internet seen deteriorating after Nokia, Ericsson leave

LTC Eugene Chu
..."SOFTWARE UPGRADES END

The biggest hurdle for mobile operators to keep their networks running will be the lack of software upgrades - Nokia and Ericsson said they would cut off software updates by next year - and patches, the sources said.

Software unifies a range of equipment that makes up a telecom network, converts analogue and digital signals; monitors and optimizes network traffic; and protects infrastructure against cyber attacks.

While mobile operators can hoard hardware parts for future use, they are reliant on a regular schedule of licensed software updates and patches to maintain the integrity of a network.

"Unquestionably, software patches are paramount to ensure networks remain operational, safe secure and reliable," said Paolo Pescatore, an analyst at PP Foresight.

Russian telecom operators stockpiled foreign-made parts in February and March ahead of sanctions, two of the industry sources said, but inventory will drop after Nokia and Ericsson pull the plug Dec. 31.

Consolidation between Russian operators at the behest of the government might also allow them to share equipment and resources to make the networks last longer, industry sources added.

Huawei, which stopped selling new equipment in Russia when the United States started sanctioning Russia, has also stopped selling its smartphones in the country, according to three sources familiar with the matter. Huawei has not publicly disclosed its status in Russia and declined to comment."