Russian Phone Operators Could Become GLONASS Shareholders

Russian providers of mobile phone services could become shareholders in the Global Navigation Satellite System (GLONASS) open joint-stock company, the Russian Kommersant daily reported Wednesday.

Russian Deputy Finance Minister Andrei Ivanov has sent a response to the report prepared by the Russian Ministry of Transport on the creation of the GLONASS open joint-stock company, The Kommersant reported, citing a person familiar with the document.

The Russian Ministry of Finance "considers it appropriate" to study the issue of inviting "interested phone operators", as well as some companies with state participation, to become GLONASS shareholders, according to the report.

The GLONASS joint-stock company is being created at the request of Russian President Vladimir Putin.

State financing for the company was initially expected to amount to 1.95 billion rubles ($49 million) in 2014-2017, The Kommersant reports, adding that the Russian Ministry of Finance later proposed to review the issue of GLONASS financing.

The GLONASS network, which was put into operation in 1993, is considered to be Russia's answer to GPS (Global Positioning System). The network provides real-time positioning and speed data for surface, sea and airborne objects.

The JSC Information Satellite Systems, a leading Russian satellite manufacturing company, announced earlier this month that a new model of the Russian GLONASS navigation system satellite will be launched at the end of this year.