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

Henry Lancaster

November 2018

Table of Contents

Key statistics

Country overview

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
Forecasts – broadband subscribers – 2019; 2021; 2023

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
SMARTS Group
Uralsvyazinform
Rostelecom
VolgaTelecom
Skylink
Mobile Virtual Network Operators (MVNOs)

Mobile content and applications

M-commerce
M-payments

List of Tables

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

List of Charts

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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Strategies & Analyses (Industry & Markets)
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Number of pages 157

Status Current

Last updated 26 Nov 2018
Update History

Analyst: Henry Lancaster

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