Totally Wired

DSCN5713A view of Kolokolnaya Street, in downtown Petersburg, crisscrossed by telecom cables. Photo by the Russian Reader

Telecom Operators Taking Their Time Clearing Nevsky Prospect of Wires
Zhanna Zhuravlyova
Delovoi Peterburg
May 15, 2018

Clear Sky, a program designed to move underground the thick network of wires stretching over Nevsky Prospect, has been launched. The results so far have not been promising. Only three out of dozen and a half telecom operators have gone underground.

The first three telecom operators have removed their fiber-optic cables from Nevsky Prospect and moved them underground into conduits built as part of the city’s Clear Sky program. These trailblazers were Prometei, Obit, and Centrex Smolny, a wholly owned affiliate of city hall’s IT and Communications Committee (KIS), which acted as the project’s general contractor, according to Centrex Smolny’s director Felix Kasatkin.

According to Kasatkin, another three or four operators are ready to move their overhead lines, currently stretched between poles and buildings, underground in May. There are around a dozen and a half telecom providers whose lines crisscross the space immediately above the Nevsky. According to market insiders, the cost of dismantling the old lines and rerouting them to the access points into the underground conduits could range from ₽100,000 to ₽2 million. The cost depends on how many times the cables cross Nevsky, and how close they are situated to the necessary access points.

It is utterly impossible to force operators to remove the lines. The overhead lines may be ugly, but they are completely legal.

A Multi-Channel Story
The problem of overhead lines on the Nevsky surfaced in 2012, when Petersburg Governor Georgy Poltavchenko voiced his outrage over the large number of lines, which disfigured the city’s main thoroughfare, in his opinion. The solution appeared obvious: move all the telecom operators into Rostelecom’s underground conduits. Many of them, however, resented the prospect, complaining about the state telecom operator’s rates, the speed with which it performed work, and its frequent refusals to configure networks.

That was when an alternative and somewhat extravagant solution was advanced: putting the telecom lines in Vodokanal’s water main conduits. A design was drafted, but never implemented.

The final solution seemed simpler. The city would build its own infrastructure within Rostelecom’s conduit, offering to rent the space to telecom operators. The idea was that they would be more open to this proposal than to collaborating with Rostelecom, with whom they were in constant competition.

Built for Free
Ultimately, ten underground conduits were built under the Nevsky, and collective access fiber-optic cables were inserted in them. Ownership of the conduits is currently being transferred to Centrex Smolny, and telecom operators are encouraged to lease the fiber-optic cables.

Kasatkin emphasizes the rates for leasing the cables are as low as possible, since they include only servicing charges. There is no need to recoup the costs of constructing the conduits, since they were built at the city’s expense. Despite our best efforts, we were unable to find the relevant government purchase order for performance of this work, nor could Centrex Smolny could not provide us with specific information on on the matter.

According to Rustelecom, around twelve kilometers of conduits were constructed for the Clear Sky project. The cost of laying one kilometer of conduit is around ₽100,000, says Yuri Bryukvin, head of Rustelecom. So, along with the cost of materials and incidental expenses, the total costs could have amounted to ₽1.5 million. KIS chair Denis Chamara reported ₽30 million were spent on the project.

Broken Telephone
Telecom operators who have received Centrex Smolny’s offer say the cost of leasing one kilometer of fiber-optic cable is approximately ₽500 a month. One conduit can contain eight, sixteen or more fiber-optic cables.

All the telecoms who operate in the city centere have fiber-optic cables that cross the Nevsky five or six times, explains Vladislav Romanenko, commercial director of Comlink Telecom. In this case, a telecom would pay up to ₽50,000 a month to lease fiber-optic cables.

Andrei Sukhodolsky, director general of Smart Telecom, whose lines also hang over the Nevsky, says the company has not yet been made an offer by Centrex Smolny.

“I have definitely not received official proposals in writing,” Sukhodolsky claims. “Theoretically, we would agree to move our lines if we could understand the costs.”

“The cost of the lease you quote is quite decent, but we have not received a commercial offer to lease fiber-optic cables,” says Romanenko. “Currently, we are considering laying our own cable in Rostelecom’s conduits.”

ER Telecom told us they were working to move their communications lines, but they did not specify where they were moving them.

The initial list of streets that should have been cleared of unnecessary wires under the Clear Sky project featured a dozen streets, including Bolshaya Morskaya Street, Moskovsky Prospect, and Izmailovsky Project. So far the KIS has no specific plans to go beyond the Nevsky. And, perhaps, the issue will no longer be relevant after the 2018 FIFA World Cup.

Market insiders point to Moscow as a positive example. The city moved its cables underground with no hitches and in much greater numbers. In Tatarstan, the authorities have obliged building owners to dismantle all structures that have not been vetted by the city on pain of paying a hefty fine.

“So the building owners dismantled the telecom lines on their own,” our source at Comfortel told us.

Our source at the KIS was at pains to emphasize that operators removed the lines “voluntarily and at their own behest.”

*********************

The overhead lines on the Nevsky usually contain eight to sixteen fiber-optic cables, which means the price of leasing a single conduit for moving lines underground could be as much as ₽8,000 a month. Then it would make sense to take advantage of Centrex Smolny’s offer. But of an operator is running a large number of cables, he would find it more profitable to lease a conduit from Rostelecom. We have already moved our cables to Rostelecom’s conduits without waiting for the offer from Centrex Smolny. It’s odd certain operators postponed the move to May, since construction work is not carried out by telecom operators only when the temperature dips below –15°C.
—Dmitry Petrov, director general, Comfortel

We have been preparing for the move for three years or so. In one spot, where our cables cross the Nevsky, we took advantage of Centrex Smolny’s offcer. The terms for leasing the fibers really are good. Centrex Smolny is clearly not making any money on this project, but they are probably not losing any money, either. The important thing about the project is the telecom operators are not commercially entangled with Centrex Smolny, while many telecoms have long, complicated relationships with Rostelecom: for example, when a lot of illegal fiber-optic cables were laid in the conduits, something that is still a matter of controversy.
—Аndrei Guk, director general, Obit

Translated by the Russian Reader

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