Russia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 29 Jul 2021 Update History

Report Pages: 254

Analyst: Henry Lancaster

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Summary
Table Of Contents

Russia develops 5G spectrum program for 2021

The Russian telecom market is the largest in Europe, supported by a population approaching 147 million. The overall market is dominated by the western regions, particularly Moscow and St Petersburg which are the main cities and economic centres. All sectors of the market have been liberalised, with competition most prevalent in 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.

MegaFon is thus far the only MNO to provide commercial 5G services, though the other operators have conducted trials for some time. The largest MNOs in mid-2021 secured regulatory approval for sharing agreement under which they will deploy 5G using shared network and spectrum assets.

Mobile penetration is high, though this is partly 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, regulatory measures introduced in 2018 which saw the end of roaming charges, and the effects of the Covid-19 pandemic.

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 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 continues to have 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:

Government determines that only domestic-made equipment can be used in 5G networks from 2024;
MegaFon contracts vendors to develop its mobile infrastructure through to 2030;
Four MNOs sign agreement to cooperate in developing 5G networks;
Government proposes a single 5G network operator for the 4.5GHz band;
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;
ER-Telecom to upgrade entire network to a 1Gb/s service by 2026;
Report update includes the regulator's market data to December 2020, telcos' financial and operating data to Q1 2021, 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
Subscribers
Infrastructure

Telecommunications market

Overview and statistics

Regulatory environment

Telecommunications Law 2003
Regulatory authority
Fixed-line developments

Telecom sector liberalisation
Privatisation
Interconnection
Access
Carrier selection
Universal Service Obligation

Broadband market developments
Mobile network developments

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

Mobile market

Market analysis
Mobile statistics
Mobile infrastructure

5G
4G (LTE)
3G
GSM

Narrowband IoT (NB-IoT)
M2M networks
Mobile voice

Voice-over-LTE (VoLTE)

Mobile data

SMS/MMS

Mobile broadband
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

Fixed-line broadband market

Introduction and statistical overview

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

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

Submarine cables
Satellite networks

Data centres

MTS
Rostelecom

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities - Russia – 2021 (e)
Table 2 – Increase in telecom market revenue – 2010 – 2021
Table 3 – Change in the share of telecom market revenue by type – 2016 – 2020
Table 4 – Growth in the number of mobile number portings – 2015 – 2019
Table 5 – Growth in the number of mobile subscribers and penetration – 2011 – 2026
Table 6 – Growth in the number of mobile subscribers and penetration in Moscow, St Petersburg – 2011 – 2019
Table 7 – Change in market share of subscribers by operator – 2010 – 2020
Table 8 – Change in mobile service revenue – 2011 – 2021
Table 9 – Forecast 5G subscribers and coverage – 2020 – 2026
Table 10 – LTE launch dates by operator
Table 11 – Growth in the number of mobile base stations by technology – 2013 – 2020
Table 12 – Mobile ground base towers in service – 2015 – 2020
Table 13 – Development of MegaFon’s LTE infrastructure – 2014 – 2020
Table 14 – Increase in the number of MegaFon’s 3G and LTE base stations – 2011 – 2021
Table 15 – Decline in the number of SMS sent – 2011 – 2022
Table 16 – Growth in the number of active mobile broadband subscribers and penetration – 2011 – 2026
Table 17 – Development of MTS’s mobile financial data (Russia, RUB billion) – 2011 – 2021
Table 18 – Development of MTS’s quarterly mobile financial data (Russia, RUB billion) – 2014 – 2021
Table 19 – Development of MTS’s capex (Russia, RUB) – 2010 – 2021
Table 20 – Development of MTS’s operating profit and margin (Russia, RUB) – 2010 – 2021
Table 21 – Growth in the number of MTS Russia’s mobile subscribers – 2010 – 2021
Table 22 – Change in MTS Russia’s mobile voice and data traffic – 2014 – 2021
Table 23 – Change in the number of VEON’s mobile subscribers (Russia) – 2011 – 2021
Table 24 – VEON ARPU and MOU (Russia) – 2011 – 2021
Table 25 – Development of VEON’s mobile financial data by type ($ million) – 2010 – 2021
Table 26 – Development of MegaFon’s consolidated financial data (RUB billion) – 2011 – 2021
Table 27 – Change in MegaFon’s capex – 2009 – 2021
Table 28 – Development of MegaFon’s mobile revenue (RUB billion) – 2010 – 2020
Table 29 – Growth in the number of MegaFon’s mobile subscribers – 2009 – 2021
Table 30 – Development of MegaFon’s mobile data traffic – 2012 – 2019
Table 31 – Growth in MegaFon’s mobile data revenue and subscriber base – 2012 – 2020
Table 32 – Change in the number of Rostelecom’s mobile subscribers – 2017 – 2021
Table 33 – Growth in the number of fixed broadband subscribers and penetration – 2011 – 2026
Table 34 – Change in the number of cable broadband subscribers – 2011 – 2021
Table 35 – Change in the number of DSL subscribers – 2011 – 2021
Table 36 – Change in the number of Rostelecom’s fixed broadband subscribers by platform (million) – 2011 – 2021
Table 37 – Growth in the number of MTS’s fixed broadband subscribers – 2011 – 2021
Table 38 – Growth in the number of VEON’s fixed broadband subscribers (thousand) – 2011 – 2021
Table 39 – Development of VEON’s fixed broadband revenue ($ million) – 2010 – 2021
Table 40 – Development of VEON’s fixed broadband ARPU ($/month) – 2011 – 2021
Table 41 – Growth in the number of Rostelecom’s fibre broadband subscribers – 2011 – 2021
Table 42 – Growth in the number of MGTS’s GPON subscribers – 2014 – 2021
Table 43 – Growth in the number of VEON’s FttB subscribers – 2011 – 2021
Table 44 – Development of VEON’s FttB revenue – 2010 – 2021
Table 45 – Growth in the number of fibre broadband subscribers – 2011 – 2021
Table 46 – Satellite broadband subscribers – 2011 – 2021
Table 47 – Development of Rostelecom’s financials (post-merger) (RUB billion) – 2011 – 2021
Table 48 – Change in the number of Rostelecom’s subscriber by type (million) – 2011 – 2021
Table 49 – Development of VEON Group’s financial data ($ billion) – 2011 – 2021
Table 50 – Development of VEON’s domestic financial data ($ billion) – 2011 – 2021
Table 51 – Growth in ER-Telecom’s revenue – 2014 – 2020
Table 52 – Development of MTS’s financials (Russia, RUB million) – 2011 – 2021
Table 53 – Development of MTS’s fixed-line subscribers by type (million) – 2011 – 2021
Table 54 – Decline in the number of fixed lines in service and teledensity – 2011 – 2026
Table 55 – Increase in international internet bandwidth – 2011 – 2019
Table 56 – Historic - Fixed lines in service and teledensity – 1998 – 2010
Table 57 – Historic - Telecom sector revenue (RUB million) – 2003 – 2010
Table 58 – Historic - MTS financial data (Russia, $ million) – 2008 – 2012
Table 59 – Historic - Rostelecom (pre-merger) financial data (RUB million) – 2008 – 2010
Table 60 – Historic - Mobile service revenue – 2003 – 2010
Table 61 – Historic - Mobile subscribers and penetration rate – 1995 – 2010
Table 62 – Historic - Mobile VAS market share by operator – 2007 – 2015
Table 63 – Historic - MegaFon mobile revenue – 2005 – 2010
Table 64 – Historic - Development of MTS’s fixed-line subscribers by type (million) – 2008 – 2010
Table 65 – Historic - MTS mobile financial data (Russia, RUB billion) – 2004 – 2010
Table 66 – Historic - MTS mobile financial data (old style, Russia, $ billion) – 2004 – 2012
Table 67 – Historic - Tele2 financial data (SEK million) – 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 (RUB million) – 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 – 2010
Table 76 – Historic - SMARTS Group subscribers – 2009 – 2015
Table 77 – Historic - SMARTS Group financial data – 2006 – 2013
Table 78 – Historic - Internet users and penetration rate – 1999 – 2015
Table 79 – Historic - Fixed broadband subscribers and penetration – 2003 – 2010
Table 80 – Historic - VEON ARPU and MOU (Russia) – 2007 – 2010
Table 81 – Historic - Increase in international internet bandwidth – 2006 – 2010
Table 82 – Historic - Development of VEON (Russia) financial data ($ billion) – 2007 – 2010
Table 83 – Historic - Development of VEON Group’ financial data ($ billion) – 2007 – 2010
Table 84 – Historic - Rostelecom’s subscriber by type (million) – 2008 – 2010
Table 85 – Historic - Development of Rostelecom’s financials (post-merger) (RUB billion) – 2008 – 2010
Table 86 – Historic - Growth in the number of VEON’s fixed broadband subscribers (thousand) – 2008 – 2010
Table 87 – Historic - Development of MegaFon’s consolidated financial data (RUB billion) – 2005 – 2010
Table 88 – Historic - Change in the number of Rostelecom’s fixed broadband subscribers by platform – 2008 – 2010
Table 89 – Historic - Growth in the number of mobile subscribers and penetration in Moscow, St Petersburg – 2006 – 2010

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 – Increase in telecom market revenue – 2010 – 2021
Chart 15 – Change in the share of telecom market revenue by type – 2016 – 2020
Chart 16 – Growth in the number of mobile subscribers and penetration – 2011 – 2026
Chart 17 – Growth in the number of mobile subscribers and penetration in Moscow, St Petersburg – 2011 – 2019
Chart 18 – Change in market share of subscribers by operator – 2010 – 2020
Chart 19 – Change in in mobile service revenue – 2011 – 2021
Chart 20 – Growth in the number of mobile base stations by technology – 2013 – 2020
Chart 21 – Increase in the number of MegaFon’s 3G and LTE base stations – 2011 – 2021
Chart 22 – Decline in the number of SMS sent – 2011 – 2022
Chart 23 – Growth in the number of mobile broadband subscribers and penetration – 2011 – 2026
Chart 24 – Development of MTS’s mobile financial data (Russia, RUB) – 2011 – 2021
Chart 25 – Development of MTS’s quarterly mobile financial data (Russia, RUB) – 2014 – 2021
Chart 26 – Development of MTS capex (Russia, RUB) – 2010 – 2021
Chart 27 – Development of MTS’s operating profit and margin (Russia, RUB) – 2010 – 2021
Chart 28 – Growth in the number of MTS Russia’s mobile subscribers – 2010 – 2021
Chart 29 – Change in the number of VEON’s mobile subscribers (Russia) – 2011 – 2021
Chart 30 – Development of VEON’s mobile financial data by type (Russia) – 2010 – 2021
Chart 31 – Development of MegaFon’s consolidated financial data – 2011 – 2021
Chart 32 – Change in MegaFon’s capex – 2009 – 2021
Chart 33 – Development of MegaFon’s mobile revenue – 2010 – 2020
Chart 34 – Growth in the number of MegaFon’s mobile subscribers – 2009 – 2021
Chart 35 – Growth in MegaFon’s mobile data revenue and subscriber base – 2009 – 2020
Chart 36 – Growth in the number of fixed broadband subscribers and penetration – 2011 – 2026
Chart 37 – Change in the number of cable broadband subscribers – 2011 – 2021
Chart 38 – Development in the number of DSL subscribers – 2011 – 2021
Chart 39 – Change in the number of Rostelecom’s fixed broadband subscribers by platform – 2011 – 2021
Chart 40 – Growth in the number of MTS’s fixed broadband subscribers – 2011 – 2021
Chart 41 – Growth in the number of VEON’s fixed broadband subscribers – 2011 – 2021
Chart 42 – Development of VEON’s fixed broadband revenue – 2010 – 2021
Chart 43 – Development of VEON’s fixed broadband ARPU – 2011 – 2021
Chart 44 – Growth in the number of Rostelecom’s fibre broadband subscribers – 2011 – 2021
Chart 45 – Growth in the number of MGTS’s GPON subscribers – 2014 – 2021
Chart 46 – Growth in the number of VEON’s FttB subscribers – 2011 – 2021
Chart 47 – Development of VEON’s FttB revenue – 2010 – 2021
Chart 48 – Growth in the number of fibre broadband subscribers – 2011 – 2021
Chart 49 – Development of Rostelecom’s financials (post-merger) – 2011 – 2021
Chart 50 – Change in the number of Rostelecom’s subscriber by type – 2011 – 2021
Chart 51 – Development of VEON Group’ financial data – 2011 – 2021
Chart 52 – Development of VEON’s domestic financial data ($ billion) – 2011 – 2021
Chart 53 – Growth in ER-Telecom’s revenue – 2014 – 2020
Chart 54 – Development of MTS’s financials (Russia, RUB) – 2011 – 2021
Chart 55 – Development of MTS’s fixed-line subscribers by type – 2011 – 2021
Chart 56 – Decline in the number of fixed lines in service and teledensity – 2011 – 2026
Chart 57 – Increase in international internet bandwidth – 2011 – 2019

List of Exhibits

Exhibit 1 – Generalised Market Characteristics by Market Segment

Related Reports

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Russia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Russia develops 5G spectrum program for 2021

Key developments:

Companies mentioned in this report:

Key statistics

Regional European Market Comparison

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

Purchase with Confidence

Research Methodology

Hot Topics

News & Views