Russia - Telecoms, Mobile and Broadband - Statistics and Analyses

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:- November 2018 (17th Edition)

Executive Summary

Russia sees strong growth in fibre broadband connectivity

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.

Telcos continue to deploy and modernise fixed-line network infrastructure to offer improved broadband services as well as a range of IP-delivered content. The government is investing billions of Rubles in a 200,000km telecom network which will provide broadband services to thousands of underserved villages, with Rostelecom contracted to undertake and manage the work.

Russia has also emerged as one of Europe’s fastest growing markets for fibre-based broadband, with about two-thirds of Rostelecom’s fixed-line broadband subscribers being on its fibre infrastructure by late 2018.

The country also has the largest mobile market in Europe, with the number of subscriptions at about 226 million at the end of 2018. Several mobile network operators are active, although the market is dominated by four major operators (MTS, VEON, Tele2 Russia and MegaFon). These have expanded their footprints widely through the acquisition of smaller regional service providers.

Mobile SIM card penetration is high though the rate has fallen in recent quarters as customers reduce the number of SIM cards in use. This is partly a response to the poor economic climate, as also to better pricing among the MNOs which reduces the on-net call charge advantages of having SIM cards from different providers.

The extensive deployment of LTE infrastructure has supported growth opportunities through mobile broadband and data services, which make up a growing proportion of overall mobile revenue. Investments in carrier aggregation and LTE-A technologies have further boosted network capabilities, while operators are also partnering with vendors to prepare for 5G.

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 covers the mobile voice and data markets, including regulatory developments, the major mobile operators as well as emerging technologies. In addition the report reviews developments in the fixed and fixed-wireless broadband segments, noting the status of the cable and DSL platforms and efforts to increase the reach of fibre infrastructure.

Key developments:

  • RETN open a 1,195km fibre cable linking Moscow with Riga;
  • Ministry of Communications supporting plans for fibre link between the UK and Japan via Murmansk and Vladivostok;
  • Rostelecom contracted to develop telecom network offering improved services to underserved villages;
  • MegaFon providing 1Gb/s data rate on its LTE network;
  • MTS launches a Gigabit Class LTE-LAA service, launches Wi-Fi Calling service;
  • All four MNOs end domestic on-net roaming charges;
  • Rostelecom’s fibre subscriber base accounting for two-thirds of company’s total;
  • MTS and VEON invest RUB2 billion on 4,500km fibre infrastructure;
  • MegaFon reports data rates of up to 35Gb/s in 5G trials, deploys CA technology to deliver Gigabit LTE-A;
  • Report update includes the regulator’s market data to June 2018, telcos’ financial and operating data to Q3 2018, recent market developments.

Companies mentioned in this report:

TransTeleCom, VEON (VimpelCom), ER-Telecom, MTS, Rostelecom, PeterStar, MegaFon, Tele2 Russia, Skylink, Volga Telecom, SMARTS Group, Uralsvyazinform, Synterra Telecom, Comstar, Summa Telecom, MetroMAX, Yota, Virgin Connect, Enforta, Golden Telecom

Table of Contents

  • 1. Key statistics
    • 1.1 Country overview
  • 2. Telecommunications market
    • 2.1 Market analysis
  • 3. Regulatory environment
    • 3.1 Telecommunications Law 2003
    • 3.2 Regulatory authority
    • 3.3 Telecom sector liberalisation
    • 3.4 Privatisation
    • 3.5 Interconnection
    • 3.6 Access
    • 3.7 Carrier selection
    • 3.8 Universal Service Obligation
  • 4. Fixed network operators
    • 4.1 Introduction
    • 4.2 Svyazinvest
      • 4.2.1 Regional operators
    • 4.3 Rostelecom
    • 4.4 Central Telegraph
    • 4.5 VEON
    • 4.6 Multiregional Transit Telecom
    • 4.7 TransTeleCom (TTK)
    • 4.8 PeterStar
    • 4.9 ER-Telecom
    • 4.10 MTS
  • 5. Telecommunications infrastructure
    • 5.1 Overview of the national telecom network
      • 5.1.1 Central Telegraph
      • 5.1.2 MTS
      • 5.1.3 Golden Telecom
      • 5.1.4 PeterStar
      • 5.1.5 Rostelecom
      • 5.1.6 TransTeleCom
      • 5.1.7 ER-Telecom
    • 5.2 International networks
      • 5.2.1 Satellite networks
    • 5.3 Data centres
  • 6. Broadband market
    • 6.1 Introduction and statistical overview
      • 6.1.1 Market analysis
      • 6.1.2 Regulatory developments
      • 6.1.3 Broadband statistics
      • 6.1.4 Forecasts – broadband subscribers – 2019; 2021; 2023
    • 6.2 Hybrid Fibre Coax (HFC) networks
    • 6.3 Digital Subscriber Line (DSL) networks
      • 6.3.1 Rostelecom
      • 6.3.2 MTS
      • 6.3.3 VEON
      • 6.3.4 Other providers
    • 6.4 Fibre-to-the-Premises (FttP)
    • 6.5 Other fixed broadband services
      • 6.5.1 Broadband Powerline (BPL)
      • 6.5.2 Fixed wireless broadband
      • 6.5.3 Wi-Fi
      • 6.5.4 WiMAX
      • 6.5.5 Internet via satellite
  • 7. Mobile communications
    • 7.1 Market analysis
    • 7.2 Mobile statistics
      • 7.2.1 General statistics
    • 7.3 Mobile infrastructure
      • 7.3.1 5G
      • 7.3.2 4G (LTE)
      • 7.3.3 3G
      • 7.3.4 GSM
    • 7.4 Narrowband IoT (NB-IoT)
    • 7.5 M2M networks
      • 7.5.1 Mobile voice
      • 7.5.2 Mobile data
      • 7.5.3 Mobile broadband
    • 7.6 Regulatory issues
      • 7.6.1 Mobile Number Portability (MNP)
      • 7.6.2 3G licences
      • 7.6.3 800MHz spectrum
      • 7.6.4 900MHz spectrum
      • 7.6.5 1800MHz spectrum
      • 7.6.6 2.6GHz spectrum
      • 7.6.7 Roaming
      • 7.6.8 Infrastructure sharing
    • 7.7 Major mobile operators
      • 7.7.1 Mobile TeleSystems (MTS)
      • 7.7.2 VEON
      • 7.7.3 MegaFon
      • 7.7.4 Tele2 Russia
      • 7.7.5 SMARTS Group
      • 7.7.6 Uralsvyazinform
      • 7.7.7 Rostelecom
      • 7.7.8 VolgaTelecom
      • 7.7.9 Skylink
      • 7.7.10 Mobile Virtual Network Operators (MVNOs)
    • 7.8 Mobile content and applications
      • 7.8.1 M-commerce
      • 7.8.2 M-payments
      • Table 1 – Top Level Country Statistics and Telco Authorities - Russia – 2018 (e)
      • Table 2 – Telecom revenue (RUB) – 2003 - 2018
      • Table 3 – Rostelecom (pre-merger) financial data – 2008 - 2010
      • Table 4 – Rostelecom (post-merger) financial data – 2008 - 2018
      • Table 5 – Rostelecom subscriber data – 2008 - 2018
      • Table 6 – VEON Group financial data – 2007 - 2018
      • Table 7 – VEON financial data (Russia) – 2007 - 2018
      • Table 8 – VEON subscribers by sector (Russia) – 2008 - 2018
      • Table 9 – ER-Telecom financial data (RUB) – 2014 - 2017
      • Table 10 – MTS financial data (Russia, $) – 2008 - 2012
      • Table 11 – MTS financial data (Russia, RUB) – 2010 - 2018
      • Table 12 – MTS fixed-line operational data – 2008 - 2018
      • Table 13 – Historic - Fixed lines in service and teledensity – 1998 - 2009
      • Table 14 – Fixed lines in service and teledensity – 2010 - 2018
      • Table 15 – International internet bandwidth – 2006 - 2016
      • Table 16 – Internet users and penetration rate – 2010 - 2018
      • Table 17 – Historic - Internet users and penetration rate – 1999 - 2009
      • Table 18 – Fixed broadband subscribers and penetration – 2003 – 2018
      • Table 19 – Forecast fixed broadband subscribers – 2019; 2021; 2023
      • Table 20 – Cable broadband subscribers – 2011 - 2018
      • Table 21 – DSL broadband subscribers – 2011 - 2018
      • Table 22 – Rostelecom fixed broadband subscribers by platform– 2008 – 2018
      • Table 23 – MTS fixed broadband subscribers – 2009 - 2018
      • Table 24 – VEON fixed broadband subscribers – 2008 - 2018
      • Table 25 – Rostelecom FttX subscribers – 2011 – 2018
      • Table 26 – MGTS GPON subscribers – 2013 – 2018
      • Table 27 – VEON FttB subscribers – 2010 – 2018
      • Table 28 – VEON FttB revenue – 2010 – 2018
      • Table 29 – Fibre broadband subscribers – 2011 – 2018
      • Table 30 – Satellite broadband subscribers – 2011 – 2018
      • Table 31 – Historic - Mobile subscribers and penetration rate – 1995 - 2009
      • Table 32 – Mobile subscribers and penetration rate – 2010 - 2018
      • Table 33 – Mobile subscribers and penetration in Moscow, St Petersburg – 2006 - 2017
      • Table 34 – Mobile market share of subscribers (Russia) – 2010 - 2017
      • Table 35 – Mobile service revenue – 2003 - 2018
      • Table 36 – LTE launch dates by operator
      • Table 37 – mobile base stations by technology - 2013 - 2016
      • Table 38 – Mobile VAS market share by operator – 2007 - 2015
      • Table 39 – SMS sent – 2011 - 2018
      • Table 40 – Active mobile broadband subscribers and penetration rate – 2010 - 2018
      • Table 41 – MTS mobile financial data (old style, Russia, $) – 2004 - 2012
      • Table 42 – MTS mobile financial data (Russia, RUB) – 2004 - 2018
      • Table 43 – MTS quarterly mobile financial data (Russia, RUB) – 2014 - 2018
      • Table 44 – MTS capex (Russia, RUB) – 2010 - 2018
      • Table 45 – MTS operating profit and margin (Russia, RUB) – 2010 - 2018
      • Table 46 – MTS Russia subscribers – 2004 - 2018
      • Table 47 – MTS Russia MOU, churn and annualised ARPU – 2001 - 2015
      • Table 48 – MTS Russia mobile voice and data traffic – 2014 - 2018
      • Table 49 – MTS Russia annualised VAS – 2004 - 2015
      • Table 50 – MTS Russia annualised VAS revenue by type – 2010 - 2015
      • Table 51 – VEON mobile subscribers (Russia) – 2005 - 2018
      • Table 52 – VEON ARPU and MOU (Russia) – 2007 - 2018
      • Table 53 – VEON mobile financial data (Russia) – 2007 - 2018
      • Table 54 – VEON mobile financial data by type (Russia) – 2012 - 2018
      • Table 55 – MegaFon consolidated financial data – 2007 - 2018
      • Table 56 – MegaFon capex – 2011 - 2018
      • Table 57 – MegaFon mobile revenue – 2005 - 2018
      • Table 58 – MegaFon mobile subscriber data – 2008 - 2018
      • Table 59 – MegaFon base stations in use – 2013 - 2015
      • Table 60 – MegaFon mobile data traffic – 2012 - 2018
      • Table 61 – MegaFon mobile data revenue and subscribers – 2012 - 2018
      • Table 62 – Tele2 financial data (historic) – 2007 - 2012
      • Table 63 – Tele2 subscribers – 2007 - 2017
      • Table 64 – SMARTS Group subscribers – 2009 - 2015
      • Table 65 – SMARTS Group financial data – 2006 - 2013
      • Table 66 – Rostelecom mobile subscribers (historic) – 2010 - 2014
      • Table 67 – Rostelecom mobile revenue (historic) – 2008 - 2014
      • Table 68 – M-commerce revenue – 2011 - 2017
      • Chart 1 – Rostelecom financial data – 2008 - 2018
      • Chart 2 – Rostelecom subscriber data – 2008 – 2018
      • Chart 3 – VEON group financial data – 2007 - 2018
      • Chart 4 – VEON financial data (Russia) – 2007 - 2018
      • Chart 5 – VEON subscribers by sector (Russia) – 2008 - 2018
      • Chart 6 – MTS financial data (Russia, RUB) – 2010 – 2018
      • Chart 7 – Fixed lines in service and teledensity – 2002 - 2018
      • Chart 8 – Internet users and penetration rate – 2005 - 2018
      • Chart 9 – Rostelecom fixed broadband subscribers by platform– 2011 – 2018
      • Chart 10 – Mobile subscribers and penetration rate – 2005 - 2018
      • Chart 11 – MTS mobile financial data (Russia, RUB) – 2004 - 2018
      • Chart 12 – VEON mobile financial data by type (Russia) – 2012 – 2018
      • Chart 13 – MegaFon financial data – 2007 - 2018

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