Russia - Broadband Market Insights, Analysis and Forecasts

Synopsis

Broadband has grown rapidly in recent years as incumbent and alternative telecom operators upgrade infrastructure as part of a general trend of migrating beyond voice-centric offerings to voice, broadband and convergence services. The relatively poor quality or lack of existing infrastructure has resulted in a variety of technology platforms deployed for broadband including xDSL, cable and FttH/FttB. Wireless solutions such as WiFi and WiMAX garnered much interest initially, though one of the main players Yota is abandoning WiMAX in favour of long-term evolution. The cooperation of three major mobile network operators and Rostelecom to deploy long-term evolution on Yota’s infrastructure will be a catalyst for significant mobile broadband uptake in coming years

Broadband diffusion is providing the basis on which a promising internet society is emerging, with much potential for future commercial, government and social services. This report offers a concise overview of Russia’s rapidly developing broadband market, providing an overview of major players, technology platforms, statistics and broadband subscriber forecasts for 2010-2013 and 2020.

Key developments:

MTS migrates DSL subscribers in Moscow to GPON; MTS and VimpelCom invest RUB2 billion on 4,500km fibre infrastructure; MegaFon collaborates with utility EuroSibEnergo, using power lines for fibre-optic network in Siberia; regulator announces regional WiMAX licensees; government approves RUB3.1 billion investment for satellite broadband in remote areas; mobile internet subscriber base reaches 63.5 million; STV and Tricolor TV withdraw from broadband market; regulator’s 2011 market data; telcos’ financial and operating data to Q1 2012; market developments into 2012.

Companies covered in this report include:

Synterra Telecom, Comstar, Volga Telecom, VimpelCom, Summa Telecom, MetroMAX, Comstar, Yota, Virgin Connect, Enforta, Golden Telecom.

1. Synopsis
2. Russia’s emerging internet society
3. Regulatory developments
4. Fixed broadband market
- 4.1 Overview
- 4.2 Fixed broadband statistics
- 4.3 Asymmetrical digital subscriber line (ADSL)
  - 4.3.1 Rostelecom
  - 4.3.2 MTS
  - 4.3.3 VimpelCom
- 4.4 Cable modems
- 4.5 Fibre-to-the-home (FttH) networks
  - 4.5.1 Golden Telecom
  - 4.5.2 MTS
  - 4.5.3 Other operators
- 4.6 Broadband powerline (BPL)
- 4.7 Wireless broadband
  - 4.7.1 WiFi
  - 4.7.2 WiMAX
  - 4.7.3 Internet via satellite
  - 4.7.4 Mobile broadband
  - 4.7.5 Cloud computing
5. Forecasts – Fixed broadband market 2010-2013; 2020
- 5.1 Scenario 1 – higher fixed broadband subscriber growth
- 5.2 Scenario 2 – lower fixed broadband subscriber growth
- 5.3 Notes on scenario forecasts
6. Related reports

Table 1 – Internet users and penetration rate – 1999 - 2013
Table 2 – Internet subscribers and penetration – 1999 - 2013
Table 3 – Fixed broadband subscribers – 2003 - 2012
Table 4 – Fixed broadband penetration – 2003 - 2012
Table 5 – Fixed broadband subscribers by ISP in Russia – 2010 - 2011
Table 6 – Moscow fixed broadband subscribes by ISP – 2010 - 2011
Table 7 – Fixed broadband market share by operator (Russia) – 2010 - 2011
Table 8 – Rostelecom fixed broadband subscribers – 2008 – 2011
Table 9 – Rostelecom broadband ARPU – 2008 – 2011
Table 10 – MTS fixed broadband subscribers – 2009 - 2012
Table 11 – Comstar annualised residential fixed broadband monthly ARPU – 2009 - 2011
Table 12 – VimpelCom fixed broadband subscribers – 2008 - 2011
Table 13 – ER-Telecom subscribers – 2011
Table 14 – ER-Telecom revenue by sector – 2011
Table 15 – VimpelCom FttB subscribers – 2010 – 2012
Table 16 – VimpelCom FttB revenue – 2010 – 2011
Table 17 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
Table 18 – Forecast fixed broadband penetration – higher growth scenario – 2010 - 2013; 2020
Table 19 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020
Table 20 – Forecast fixed broadband penetration – lower growth scenario – 2010 - 2013; 2020