Rostec proposes mobile operators create joint venture to implement Russia's anti-terror law

State-owned technology corporation Rostec has invited Russia's mobile operators Beeline, MTS, and MegaFon, along with Russia's leading long-distance telephone company Rostelecom, to establish a joint company for storing and processing data in order to implement the country's new anti-terror laws adopted in the summer of 2016.

"We are ready to create a database for storing data together with all operators ... This [would] be a large joint venture into which all interest parties [would] invest. And this company would provide services to all of the operators," said Rostec head Sergei Chemezov told reporters.

Chemezov established that there have been no discussion in regards to individual shares in the new venture at this point.

MTS, MegaFon, and Beeline-owner VimpelCom declined to comment when contacted by news agency Interfax. According to a source close to one of the operators, Rostec's proposal stands in conflict with the government's requirement that user's personal details not be transferred to third parties.

• Rostoc mentioned the creation of a unified data storage center to house all Internet correspondence in late August 2016. Rostec officials reportedly believed that the creation of a single data center would reduce the costs of implementing the new legislation.
• Rostelecom had made a similar proposal.
• Spearheaded by Duma member Irina Yarovaya and Federation Council member Viktor Ozerov, the new law grants the government sweeping new powers to combat broadly-defined terrorism and extremism and saddles Russia's telecoms industry with onerous new regulations that include storing copies of all telephone and Internet conversations.