Russia - Mobile Market Insights and Statistics

Synopsis

Russia possesses the largest mobile market in Europe. A number of mobile network operators offer services although the market is dominated by three major operators (MTS, Vimpelcom and MegaFon), which have expanded nationally through acquisitions of smaller regional service providers. Competition in the key markets of Moscow and St Petersburg is fierce, due to higher concentration of wealth in the two cities. Russia’s recent economic woes, due to the global financial crisis, have impacted growth although growth is expected to pick up again in line with the overall economy. Mobile SIM card penetration has surpassed 150% although actual mobile user penetration is lower. Deployment of WCDMA/HSPA networks presents a new growth opportunity through the offering of mobile broadband services, while the evolving LTE sector offers considerable promise for rural broadband.

This report provides a concise 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 financial and operational statistics.

Key developments:

Yota and Rostelecom agree to share resources for an LTE network; MTS and Vimpelcom sign LTE network construction deal; Rostelecom given Ministry of Defence clearance to develop LTE in the 2.3GHz band; imminent launch of LTE in Novosibirsk; Vimpelcom merges with seven subsidiary companies; MTS awarded Moscow’s first LTE license; MegaFon begins migrating GSM in Moscow to 3G in the 900MHz band; operator data to Q3 2011.

Companies covered in this report include:

MegaFon, Tele2 Russia, Skylink, Volga Telecom, SMARTS Group, Uralsvyazinform.

Table of Contents

• 1. Synopsis
• 2. Mobile communications
  • 2.1 Overview and analysis of Russia’s mobile market
    • 2.1.1 Mobile statistics
  • 2.2 Regulatory issues
    • 2.2.1 Mobile number portability
    • 2.2.2 3G licences
    • 2.2.3 Calling Party Pays (CPP) legislation
    • 2.2.4 Roaming
  • 2.3 Mobile technologies
    • 2.3.1 Digital
    • 2.3.2 Third Generation (3G) mobile
  • 2.4 Major mobile operators
    • 2.4.1 Mobile TeleSystems (MTS)
    • 2.4.2 Vimpelcom
    • 2.4.3 MegaFon
    • 2.4.4 Tele2 Russia
    • 2.4.5 SMARTS Group
    • 2.4.6 Skylink
    • 2.4.7 Uralsvyazinform
    • 2.4.8 VolgaTelecom
    • 2.4.9 Mobile Virtual Network Operators (MVNOs)
  • 2.5 Mobile voice services
    • 2.5.1 Prepaid
    • 2.5.2 Satellite mobile
  • 2.6 Mobile data services
    • 2.6.1 SMS/MMS
    • 2.6.2 General packet radio service (GPRS)
    • 2.6.3 Enhanced data for GSM evolution (EDGE)
    • 2.6.4 High-speed packet access (HSPA)
    • 2.6.5 Long-term evolution (LTE)
    • 2.6.6 Mobile broadband
    • 2.6.7 Mobile TV
  • 2.7 Mobile content and applications
    • 2.7.1 Overview
• 3. Related reports

• Table 1 – Mobile operators, subscribers (Russia) and annual change – Oct 2011
• Table 2 – Mobile subscribers and penetration rate – 1995 - 2012
• Table 3 – Mobile market share – Oct 2011
• Table 4 – Mobile service revenue – 2003 - 2012
• Table 5 – MTS group financial data – 2005 - 2011
• Table 6 – MTS (Russia mobile) financial data – 2004 - 2011
• Table 7 – MTS Russia subscribers – 2004 - 2011
• Table 8 – MTS Russia operational data, SAC, MOU, churn and ARPU – 2001 - 2011
• Table 9 – MTS Russia annualised VAS as proportion of total ARPU – 2004 - 2011
• Table 10 – Vimpelcom mobile subscribers (Russia) – 2005 - 2010
• Table 11 – Vimpelcom ARPU and MOU (Russia) – 2007 - 2011
• Table 12 – Vimpelcom group financial data – 2007 - 2011
• Table 13 – Vimpelcom mobile financial data (Russia) – 2007 - 2011
• Table 14 – MegaFon financial data – 2007 - 2011
• Table 15 – MegaFon mobile subscriber data – 2008 - 2011
• Table 16 – Tele2 financial data – 2007 - 2011
• Table 17 – Tele2 subscribers – 2007 - 2011
• Table 18 – SMARTS Group subscribers – 2006 - 2010
• Table 19 – SMARTS Group subscribers, annual change – 2006 - 2010
• Table 20 – SMARTS Group financial data – 2006 - 2010
• Table 21 – VolgaTelecom mobile revenue – 2007 - 2010
• Table 22 – VolgaTelecom mobile subscribers – 2007 - 2010
• Table 23 – VolgaTelecom MOU and ARPU – 2007 - 2010
• Table 24 – MTS and Vimpelcom prepaid subscribers – 2004 - 2010
• Table 25 – Mobile VAS as proportion of total mobile revenue – 2002 - 2012
• Table 26 – Mobile VAS market share by operator – 2007 - 2011
• Table 27 – Data revenue by type – 2008 - 2010
• Table 28 – Mobile broadband subscribers and penetration rate – 2006 - 2012

• Chart 1 – Mobile subscribers and penetration rate – 2000 - 2012
• Chart 2 – MTS group financial data – 2005 - 2011
• Chart 3 – MTS (Russia mobile) financial data – 2004 - 2011
• Chart 4 – MTS Russia subscribers, annual change – 2004 - 2011
• Chart 5 – Vimpelcom mobile subscribers (Russia), annual change – 2005 - 2011
• Chart 6 – Vimpelcom group financial data – 2007 - 2011
• Chart 7 – Vimpelcom mobile financial data (Russia) – 2007 - 2011
• Chart 8 – MegaFon financial data – 2007 - 2011
• Chart 9 – Tele2 financial data – 2007 - 2011
• Chart 10 – Tele2 subscribers, annual change – 2007 - 2011
• Chart 11 – SMARTS Group financial data – 2006 – 2010
• Chart 12 – VolgaTelecom mobile revenue – 2007 - 2010
• Chart 13 – VolgaTelecom mobile subscribers – 2007 - 2010
• Chart 14 – Data revenue by type – 2008 - 2010