The Russian telecom market is the largest in Europe, supported by a population of about 144 million. The market is dominated by the western regions where the main cities and economic centres are concentrated.
All sectors have been liberalised, with competition most prevalent in Moscow and St Petersburg, the two largest regional markets. The incumbent telco Rostelecom, which absorbed most of the regional players, in late 2019 acquired the remaining 55% of Tele2 Russia which it did not already own. The deal strengthened the company’s ability to compete in the offering a full range of bundled services.
Telcos continue to deploy and modernise fixed-line network infrastructure to offer improved broadband services as well as a range of IP-delivered content. As a result, the fibre broadband sector has shown considerable growth, supported by the government’s program to extend the reach of broadband to outlying regions.
The mobile market is on the cusp of the 5G era, though there have been delays in auctioning suitable spectrum. The country’s MNO have trialled 5G using spectrum in the higher bands, though spectrum assets in the 700MHz band and the 3.4GHz band, secured for 5G use elsewhere in Europe, have not been made available in Russia.
Mobile penetration is high, though this is partly due to the popularity of multiple SIM card use. There is pressure on operator revenue from the poor economic climate, lower pricing resulting from intense competition, regulatory measures introduced in 2018 which saw the end of roaming charges, and the effects of the Covid-19 pandemic.
This report provides an overview of Russia’s fixed-line telecom and IT markets. It includes information on key regulatory developments, data on fixed-line networks, and an assessment of telcos’ financial and operating performance. The report also reviews the mobile market, covering the major mobile operators as well as technologies and mobile data, content and applications, and a variety of updated financial and operational statistics. In addition, the report assesses developments in the fixed broadband sector, assessing the migration from DSL to fibre and the potential for DOCSIS3.1. The report includes a range or subscribers forecasts covering the fixed-line, mobile, mobile broadband and fixed broadband segments.
BuddeComm notes that the outbreak of the Coronavirus is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.
On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.
Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.
The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.
- Government determines that only domestic-made equipment can be used in 5G networks from 2024;
- Four MNOs sign agreement to cooperate in developing 5G networks;
- Government proposes a single 5G network operator for the 4.5GHz band;
- MegaFon providing 1Gb/s data rate on its LTE network, enters talks for sale and leaseback of tower infrastructure;
- Domestic on-net roaming charges ended;
- ER-Telecom to upgrade entire network to a 1Gb/s service by 2026;
Report update includes the regulator's market data to June 2020, telcos' financial and operating data to Q3 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.
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Developing Telecoms market report summaries are produced in partnership with BuddeComm, the world’s largest continually updated online telecommunications research service.
The above article is a summary of the following BuddeComm report:
Report title: Russia - Telecoms, Mobile and Broadband - Statistics and Analyses
Edition: December 2020
Analyst: Henry Lancaster
Number of pages: 235
Companies mentioned in this report: MegaFon, Tele2 Russia, Skylink, VEON, Volga Telecom, SMARTS Group, Uralsvyazinform, MTS, TransTeleCom, ER-Telecom, MTS, Rostelecom, PeterStar, Synterra Telecom, Comstar, Summa Telecom, MetroMAX, Comstar, Yota, Virgin Connect, Enforta, Golden Telecom
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For more information or to purchase a copy of the full report please use the following link: https://www.budde.com.au/Research/Russia-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses/?r=83