RF Ministry of Communications: Results and Prospects - RUSSOFT
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RF Ministry of Communications: Results and Prospects

The new Russian Cabinet of Ministers has turned out unexpected for the communication sector.

Source: CNews
May 12, 2008
On the one hand, the powers of the Federal Supervisory Service on Communication, Mass Media and Culture Protection (Rossvyazohrankultura) that has been developed for a year have been again divided between the ministries. The given fact has deprived Igor Sechin control over the communication sector. On the other hand, the new Ministry of Telecommunications and Mass Communications has been headed by the previously unknown Igor Shegolev, while the era of Leonid Reiman lasting for nine years has actually finished.

On Monday, May 12, Vladimir Putin, who was appointed the RF Prime Minister last week, submitted the new Cabinet of Ministers to the RF President Dmitry Medvedev, who approved the Cabinet and signed a corresponding ordinance. A new Ministry of Telecommunications and Mass Communications has been established through uniting the Ministry of IT and Communications and the Ministry of Culture and Mass Communications (the new Agency is vested with powers over MM) and the Federal Supervisory Service on Communications, Mass Media and Culture Protection (the Ministry receives the powers to regulate telecommunications and MM). The Ministry of Communications consists of three agencies, i.e. the agency of communications, the agency of IT, the agency of press and mass communications, as well as the Federal supervisory service on telecommunications and mass communications.

Vladimir Putin prefers the well-known Igor Shegolev, who headed the RF President Protocol Service, to be appointed the Minister of Communications. So Leonid Reiman has to resign, although in 1999 after Vladimir Putin was appointed the Prime Minister the former was promoted and appointed head of the State Committee on Communications. Mr. Reiman’s resignation is especially unexpected as he has been rumoured to be appointed the Vice-Premier.

At the same time Igor Sechenov – the Kremlin Grey Eminence – has also failed (officially he has been the assistant to the president, while currently he has been appointed the Vice-Premier). He was considered to initiate the creation of a mega regulator – the Federal Supervisory Service on Communications, Mass Media and Culture Protection. The given agency deprived the Ministry of Communications and the Ministry of Culture and Mass Communications of most of their powers: supervision, licensing, monitoring radio frequency agencies, granting frequencies, maintaining the register of personal data operators, etc. According to market participants, Boris Boyarskov, head of the mentioned above agency, was subordinate not to corresponding ministers but to Mr. Sechin.

‘The new minister Igor Shegolev is an efficient official, - believes Igor Ryabov, PR Director and Summa Telecom. – The Ministry of Communications has to resolve a bulk of problems related to frequency redistribution, interaction with the military, etc. The new minister has been appointed to tackle the given problems’. Mr. Ryabov recollects Mr. Reiman maintains good relations with Dmitry Medvedev, so the candidacy of Mr. Shegolev is likely to be approved by Mr. Reiman and his people are likely to occupy key positions in the new Ministry of Communications.

According to one of Mr. Reiman’s main opponents, who wished to remain unnamed, the former Minister of Communications will not leave the sector and will be in charge of the Svyazinvest Holding, as he is its CEO. ‘Reiman might resume his post, that is the issue of bargaining, - says Yuri Bryukvin, director general of the analytical agency Rustelecom. – A similar situation occurred when forming the new government in 2004: a unified agency was established then – the Ministry of Transport and Communications headed by Igor Levitin, who was not experienced in telecommunications. However, in several months the ministries were separated, while Mr. Reiman resumed the former powers’.

Mr. Reiman being the Minister of Communications, the agency was the object of constant attention and disputes. In particular, in 2002-2004 an information war unleashed upon