MegaFon's private LTE network is coming to MMK

Magnitogorsk Iron and Steel Works and MegaFon signed a five-year agreement on cooperation in the development of advanced technologies. In particular, the agreement will cover the development of the Internet of Things, digitalisation of the enterprise and improvement of telecom infrastructure in Magnitogorsk. MegaFon will build a private LTE network at MMK’s production sites.

The private LTE network will create a secure and stable data transmission environment for the plant's digitalisation projects, including the implementation of Industrial Internet of Things (IoT) technologies, services based on video analytics and positioning systems for personnel, machines and mechanisms.

The network will be deployed by 2022 on an area of more than 11,000 hectares, more than half of which is occupied by production facilities. More than 20 indoor base stations will be built to provide a stable signal within the extensive group of workshops, and six new telecom facilities will be built in the open area of MMK. MegaFon will install state-of-the-art equipment that will ensure a seamless transition to 5G technology in the future.

The base stations will operate in the 900 and 2600 MHz bands. The lower band will provide the best communication signal penetration inside production shops, where MMK plans to introduce IoT-based services for smooth operation of technological processes. The upper band will guarantee the highest data transmission speeds.

"In addition to high speed and maximum security of transmitted data, noise resistance was extremely important to us, which is simply necessary in the conditions of the plant's workshops," stressed Vadim Feoktistov, MMK's Chief Information Technology Specialist, "The construction of a dedicated network will allow us to solve these tasks and outline the digital contour of future innovation projects. Private LTE network gives additional possibilities for prompt deployment of data transfer infrastructure for the needs of digitalization projects. For example, it is planned to use private LTE services for the "smart" warehouses based on Oracle WMS, which are currently being implemented. The use of this technology will save about RUB 50 million on the deployment of an expensive Wi-Fi network at an open site.

"Magnitogorsk Iron and Steel Works is the largest city-forming enterprise and our long-term partner and client. Over the years of cooperation, MegaFon has launched more than 100 base stations in Magnitogorsk, and we also have joint experience in implementing digital solutions in the production chain of warehouses and the transportation of raw materials. The construction of the private LTE network marks a new stage in our cooperation and will help MMK to digitalise the most complex technological processes and improve production efficiency and safety," commented Natalia Taldykina, Director of Corporate Business Development at MegaFon.

Magnitogorsk Iron and Steel Works (MMK) is one of the world's largest steel producers and holds leading positions among Russian steel companies.

The company's assets in Russia represent a large steelmaking complex with a full production cycle, from preparation of iron ore to production of downstream products.

MMK produces a wide range of steel products with a predominant share of premium products.

In 2020. MMK Group produced 11.6 million tonnes of steel and sold 10.8 million tonnes of steel products. MMK Group's revenue for 2020 was $6.395 billion and EBITDA was $1.492 billion.

MegaFon is a nationwide digital capability operator and five-time winner of the award for fastest mobile Internet speed in Russia from international company Ookla. The company combines the IT and telecommunications segments and provides mobile and fixed-line services, mobile and broadband Internet access, digital TV and OTT video content, and innovative digital products and services. The company's services in Russia are used by 74.2 million customers.