Russia has the largest mobile market in Europe, with the number of subscriptions approaching 250 million. Several mobile network operators offer services, although the market is dominated by four major operators (MTS, VimpelCom, Tele2 Russia and MegaFon), which have expanded nationally through the acquisition of smaller regional service providers. Tele2 Russia has undergone several changes of ownership in recent years, becoming a significant player following its merger with Rostelecom. Competition in the key markets of Moscow and St Petersburg is fierce, due to the size of the cities’ populations and the higher concentration of wealth there.
Mobile SIM card penetration is high, at around 175% by early 2016, although actual mobile user penetration is lower due to the popularity of multiple SIM card use. The deployment of HSPA and LTE networks presents a new growth opportunity through mobile broadband and data services, which make up a growing proportion of overall mobile revenue.
This report provides an overview of Russia’s mobile market, covering regulatory developments, the major mobile operators including MegaFon, VimpelCom and Tele2, as well as technologies and mobile data, content and applications, and a variety of updated financial and operational statistics.
MTS and VimpelCom agree on shared spectrum to expand LTE across 20 regions; MTS secures national licence in 2.6GHz spectrum auction, launches national HD voice service on GSM networks; VimpelCom aiming to halt 3G investment by late 2016; MegaFon announces plans to spin off towers infrastructure into a separate company; Ericsson and MTS sign agreement to develop 5G services by 2018; Ministry of Communications removes restrictions on IMS, allowing for national VoLTE services; government auctions 1800MHz spectrum; MegaFon signs seven-year infrastructure upgrade contract; report update includes the regulator’s market data to September 2015, telcos’ financial and operating data to Q3 2015, recent market developments.
Companies mentioned in this report include:
MegaFon, Tele2 Russia, Skylink, Volga Telecom, SMARTS Group, Uralsvyazinform.