2019 Russia - Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 23 Apr 2020 Update History

Report Status: Archived

Report Pages: 232

Analyst: Henry Lancaster

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Summary
Table Of Contents

Publication Overview

This report provides a comprehensive overview of trends and developments in Russia’s telecommunications market. The report analyses the fixed-line, mobile and broadband sectors. Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure developments;
Major Players, Revenues, Subscribers, ARPU, MoU;
Mobile Voice and Data Markets;
Broadband (FttP, DSL, cable, wireless);
Mobile subscribers and ARPU;
Broadband market forecasts;
Government policies affecting the telecoms industry;
Market liberalisation and industry issues;
Telecoms operators – privatisation, IPOs, acquisitions, new licences;
Mobile technologies (GSM; 3G, HSPA, LTE, 5G).

Researcher:- Henry Lancaster
Current publication date:- Janurary 2020 (18th Edition)

Executive Summary

Russia’s MNOs cooperate in developing 5G infrastructure

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, with an auction of spectrum in the 25.25GHz-27.5GHz range expected in the first months of 2020, and with the MNOs poised to launch commercial services later in the year. Mobile SIM card penetration is high, although actual mobile user penetration is lower 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, and regulatory measures introduced in 2018 which saw the end of roaming charges.

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 large 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 in 2020 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.

Key developments:

Four MNOs sign agreement to cooperate in developing 5G networks;
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;
Tele2 Russia fully acquired by Rostelecom;
Akado Telecom continues DOCSIS3.1 trials;
ER-Telecom to upgrade entire network to a 1Gb/s service by 2026;
Rostelecom's fibre subscriber base accounting for 69% of company's total;
VEON agrees to sell tower infrastructure to Russian Towers;
Report update includes the regulator's market data to September 2019, telcos' financial and operating data to Q3 2019, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, recent market developments

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

Key statistics
Regional European Market Comparison

Europe Telecom Maturity Index by tier

Market Leaders
Market Challengers
Market Emergents

TMI versus GDP

Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration
Country overview
COVID-19 and its impact on the telecom sector

Economic considerations and responses
Mobile devices
Subscribers
Infrastructure

Telecommunications market

Market analysis

Regulatory environment

Telecommunications Law 2003
Regulatory authority
Telecom sector liberalisation
Privatisation
Interconnection
Access
Carrier selection
Universal Service Obligation

Fixed network operators

Introduction
Svyazinvest

Regional operators

Rostelecom
Central Telegraph
VEON
Multiregional Transit Telecom
TransTeleCom (TTK)
PeterStar
ER-Telecom
MTS

Telecommunications infrastructure

Overview of the national telecom network

Central Telegraph
MTS
Golden Telecom
PeterStar
Rostelecom
TransTeleCom
ER-Telecom

International networks

Satellite networks

Data centres

Broadband market

Introduction and statistical overview

Market analysis
Regulatory developments
Broadband statistics

Hybrid Fibre Coax (HFC) networks
Digital Subscriber Line (DSL) networks

Rostelecom
MTS
VEON
Other providers

Fibre-to-the-Premises (FttP)
Other fixed broadband services

Broadband Powerline (BPL)
Fixed wireless broadband
Wi-Fi
WiMAX
Internet via satellite

Mobile communications

Market analysis
Mobile statistics

General statistics

Mobile infrastructure

5G
4G (LTE)
3G
GSM

Narrowband IoT (NB-IoT)
M2M networks

Mobile voice
Mobile data
Mobile broadband

Regulatory issues

Mobile Number Portability (MNP)
3G licences
800MHz spectrum
900MHz spectrum
1800MHz spectrum
2.6GHz spectrum
Roaming
Infrastructure sharing

Major mobile operators

Mobile TeleSystems (MTS)
VEON
MegaFon
Tele2 Russia/Rostelecom
SMARTS Group
Uralsvyazinform
VolgaTelecom
Skylink
Mobile Virtual Network Operators (MVNOs)

Mobile content and applications

M-commerce
M-payments

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities - Russia – 2019 (e)
Table 2 – Growth in telecom sector revenue – 2011 – 2019
Table 3 – Development of Rostelecom’s financials (post-merger) – 2008 – 2019
Table 4 – Change in the number of Rostelecom’s subscriber by type – 2008 – 2019
Table 5 – Development of VEON Group’ financial data – 2007 – 2019
Table 6 – Development of VEON (Russia) financial data – 2007 – 2019
Table 7 – Change in the number of VEON’s subscribers (Russia) by sector – 2008 – 2019
Table 8 – Growth in ER-Telecom’s revenue – 2014 – 2018
Table 9 – Development of MTS’s financials (Russia, RUB) – 2010 – 2019
Table 10 – Development of MTS’s fixed-line subscribers by type – 2008 – 2019
Table 11 – Decline in the number of fixed lines in service and teledensity – 2009 – 2024
Table 12 – Increase in international internet bandwidth – 2006 – 2017
Table 13 – Growth in the number of fixed broadband subscribers and penetration – 2009 – 2024
Table 14 – Development in the number of cable broadband subscribers – 2011 – 2020
Table 15 – Development in the number of DSL subscribers – 2011 – 2020
Table 16 – Change in the number of Rostelecom’s fixed broadband subscribers by platform– 2008 – 2019
Table 17 – Growth in the number of MTS’s fixed broadband subscribers – 2009 – 2019
Table 18 – Growth in the number of VEON’s fixed broadband subscribers – 2008 – 2019
Table 19 – Development of VEON’s fixed broadband revenue – 2016 – 2019
Table 20 – Development of VEON’s fixed broadband ARPU – 2016 – 2019
Table 21 – Growth in the number of Rostelecom’s fibre broadband subscribers – 2011 – 2019
Table 22 – Growth in the number of MGTS GPON subscribers – 2014 – 2019
Table 23 – Growth in the number of VEON’s FttB subscribers – 2010 – 2019
Table 24 – Development of VEON’s FttB revenue – 2010 – 2019
Table 25 – Growth in the number of fibre broadband subscribers – 2011 – 2020
Table 26 – Satellite broadband subscribers – 2011 – 2020
Table 27 – Growth in the number of mobile subscribers and penetration – 2009 – 2024
Table 28 – Growth in the number of mobile subscribers and penetration in Moscow, St Petersburg – 2006 – 2019
Table 29 – Change in market share of subscribers by operator – 2010 – 2019
Table 30 – Decline in in mobile service revenue – 2009 – 2019
Table 31 – Forecast 5G subscribers and coverage – 2020 – 2025
Table 32 – LTE launch dates by operator
Table 33 – Growth in the number of mobile base stations by technology - 2013 – 2018
Table 34 – Mobile ground base towers in service - 2015 – 2019
Table 35 – Development of MegaFon’s LTE infrastructure - 2014 – 2019
Table 36 – Decline in the number of SMS sent – 2011 – 2020
Table 37 – Growth in the number of active mobile broadband subscribers and penetration – 2010 – 2024
Table 38 – Growth in the number of mobile number portings – 2015 – 2017
Table 39 – Development of MTS’s mobile financial data (Russia, RUB) – 2009 – 2019
Table 40 – Development of MTS’s quarterly mobile financial data (Russia, RUB) – 2014 – 2019
Table 41 – Development of MTS capex (Russia, RUB) – 2010 – 2019
Table 42 – Development of MTS’s operating profit and margin (Russia, RUB) – 2010 – 2019
Table 43 – Growth in the number of MTS Russia’s mobile subscribers – 2004 – 2019
Table 44 – MTS Russia mobile voice and data traffic – 2014 – 2019
Table 45 – Change in the number of VEON’s mobile subscribers (Russia) – 2009 – 2019
Table 46 – VEON ARPU and MOU (Russia) – 2007 – 2019
Table 47 – Development of VEON’s mobile financial data by type (Russia) – 2007 – 2019
Table 48 – Development of MegaFon’s consolidated financial data – 2007 – 2019
Table 49 – Change in MegaFon’s capex – 2011 – 2019
Table 50 – Development of MegaFon’s mobile revenue – 2010 – 2019
Table 51 – Growth in the number of MegaFon’s mobile subscribers – 2009 – 2019
Table 52 – Development of MegaFon’s mobile data traffic – 2012 – 2019
Table 53 – Growth in MegaFon’s mobile data revenue and subscriber base – 2012 – 2019
Table 54 – Rostelecom mobile subscribers – 2017 – 2019
Table 55 – Historic - Fixed lines in service and teledensity – 1998 – 2009
Table 56 – Historic - Telecom sector revenue (RUB million) – 2003 – 2010
Table 57 – Historic - MTS financial data (Russia, $) – 2008 – 2012
Table 58 – Historic - Rostelecom (pre-merger) financial data – 2008 – 2010
Table 59 – Historic - Internet users and penetration rate – 1999 – 2015
Table 60 – Historic - fixed broadband subscribers and penetration – 2003 – 2009
Table 61 – Historic - Mobile subscribers and penetration rate – 1995 – 2009
Table 62 – Historic - Mobile service revenue – 2003 – 2009
Table 63 – Historic - Mobile VAS market share by operator – 2007 – 2015
Table 64 – MegaFon mobile revenue – 2005 – 2009
Table 65 – Historic - MTS mobile financial data (Russia, RUB) – 2004 – 2009
Table 66 – Historic - MTS mobile financial data (old style, Russia, $) – 2004 – 2012
Table 67 – Historic - Tele2 financial data – 2007 – 2012
Table 68 – Historic - MTS Russia MOU, churn and annualised ARPU – 2001 – 2015
Table 69 – Historic - MTS Russia annualised VAS – 2004 – 2015
Table 70 – Historic - MTS Russia annualised VAS revenue by type – 2010 – 2015
Table 71 – Historic - M-commerce revenue – 2011 – 2015
Table 72 – Historic - Rostelecom mobile subscribers – 2010 – 2014
Table 73 – Historic - Rostelecom mobile revenue – 2008 – 2014
Table 74 – Historic - Tele2’s mobile subscribers – 2007 – 2017
Table 75 – Historic - VEON mobile subscribers (Russia) – 2005 – 2009
Table 76 – Historic - MegaFon base stations in use – 2013 – 2015
Table 77 – Historic - SMARTS Group subscribers – 2009 – 2015
Table 78 – Historic - SMARTS Group financial data – 2006 – 2013

List of Charts

Chart 1 – Europe Telecoms Maturity Index – Market Leaders (top tier)
Chart 2 – Europe Telecoms Maturity Index – Market Challengers (middle tier)
Chart 3 – Europe Telecoms Maturity Index – Market Emergents (bottom tier)
Chart 4 – Overall view - Telecoms Maturity Index vs GDP per Capita
Chart 5 – Europe - mobile subscriber penetration vs mobile broadband penetration
Chart 6 – Scandinavia and Baltics: mobile subscriber penetration vs mobile broadband penetration
Chart 7 – Northern Europe –mobile subscriber penetration vs mobile broadband penetration
Chart 8 – Southern Europe mobile subscriber penetration vs mobile broadband penetration
Chart 9 – Eastern Europe mobile subscriber penetration vs mobile broadband penetration
Chart 10 – Scandinavia and Baltics fixed and mobile broadband penetration
Chart 11 – Northern Europe fixed and mobile broadband penetration
Chart 12 – Southern Europe fixed and mobile broadband penetration
Chart 13 – Eastern Europe fixed and mobile broadband penetration
Chart 14 – Growth in telecom sector revenue – 2011 – 2019
Chart 15 – Development of Rostelecom’s financials (post-merger) – 2008 – 2019
Chart 16 – Change in the number of Rostelecom’s subscriber by type – 2008 – 2019
Chart 17 – Development of VEON Group’ financial data – 2007 – 2019
Chart 18 – VEON financial data (Russia) – 2007 – 2019
Chart 19 – Change in the number of VEON’s subscribers (Russia) by sector – 2008 – 2019
Chart 20 – Growth in ER-Telecom’s revenue – 2014 – 2018
Chart 21 – Development of MTS’s financials (Russia, RUB) – 2010 – 2019
Chart 22 – Development of MTS’s fixed-line subscribers by type – 2008 – 2019
Chart 23 – Decline in the number of fixed lines in service and teledensity – 2009 – 2024
Chart 24 – Increase in international internet bandwidth – 2006 – 2017
Chart 25 – Growth in the number of fixed broadband subscribers and penetration – 2009 – 2024
Chart 26 – Development in the number of cable broadband subscribers – 2011 – 2020
Chart 27 – Development in the number of DSL subscribers – 2011 – 2020
Chart 28 – Change in the number of Rostelecom’s fixed broadband subscribers by platform– 2008 – 2019
Chart 29 – Growth in the number of MTS’s fixed broadband subscribers – 2009 – 2019
Chart 30 – Growth in the number of VEON’s fixed broadband subscribers – 2008 – 2019
Chart 31 – Development of VEON’s fixed broadband revenue – 2016 – 2019
Chart 32 – Development of VEON’s fixed broadband ARPU – 2016 – 2019
Chart 33 – Growth in the number of Rostelecom’s fibre broadband subscribers – 2011 – 2019
Chart 34 – Growth in the number of MGTS GPON subscribers – 2014 – 2019
Chart 35 – Growth in the number of VEON’s FttB subscribers – 2010 – 2019
Chart 36 – Development of VEON’s FttB revenue – 2010 – 2019
Chart 37 – Growth in the number of fibre broadband subscribers – 2011 – 2020
Chart 38 – Growth in the number of mobile subscribers and penetration – 2009 – 2024
Chart 39 – Growth in the number of mobile subscribers and penetration in Moscow, St Petersburg – 2006 – 2019
Chart 40 – Change in market share of subscribers by operator – 2010 – 2019
Chart 41 – Decline in in mobile service revenue – 2009 – 2019
Chart 42 – Growth in the number of mobile base stations by technology - 2013 – 2018
Chart 43 – Growth in the number of mobile broadband subscribers and penetration – 2009 – 2024
Chart 44 – Development of MTS’s mobile financial data (Russia, RUB) – 2009 – 2019
Chart 45 – Development of MTS’s quarterly mobile financial data (Russia, RUB) – 2014 – 2019
Chart 46 – Development of MTS capex (Russia, RUB) – 2010 – 2019
Chart 47 – Development of MTS’s operating profit and margin (Russia, RUB) – 2010 – 2019
Chart 48 – Growth in the number of MTS Russia’s mobile subscribers – 2004 – 2019
Chart 49 – Change in the number of VEON’s mobile subscribers (Russia) – 2009 – 2019
Chart 50 – Development of VEON’s mobile financial data by type (Russia) – 2007 – 2019
Chart 51 – Development of MegaFon’s consolidated financial data – 2007 – 2019
Chart 52 – Change in MegaFon’s capex – 2011 – 2019
Chart 53 – Development of MegaFon’s mobile revenue – 2010 – 2019
Chart 54 – Growth in the number of MegaFon’s mobile subscribers – 2008 – 2019
Chart 55 – Growth in MegaFon’s mobile data revenue and subscriber base – 2012 – 2019

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2019 Russia - Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Russia’s MNOs cooperate in developing 5G infrastructure

Key developments:

Companies mentioned in this report:

Key statistics

Regional European Market Comparison

Mobile and mobile broadband penetration

Fixed versus mobile broadband penetration

Country overview

COVID-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Fixed network operators

Telecommunications infrastructure

Broadband market

Mobile communications

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views