Telecommunications market in Russia 2015 Development forecasts for 2015-2020
  • Date of issue: November 2015
  • Pages: 202
  • Delivery: Pdf file

Telecommunications market in Russia 2015

Development forecasts for 2015-2020

This document provides comprehensive coverage of the Russian telecommunications market. It contains informative market overviews, value and macroeconomic data and analysis of widespread trends.

 

The report includes evaluation by the average revenues per user (ARPU), average usage per user (AUPU), pricing indices including average price per minute (APPM) and various price baskets, churn and CAPEX indices, information concerning 30 of the top companies on the market and in-depth forecasts for market growth and for expansion in the mobile telephony, fixed line telephony and internet services segments. It also presents analysis and updates for sub-segments of the market such as IP TV and satellite communications. Extra info about machine-to-machine (M2M) B2B services is also provided.

 

This report features…

  • Status of the implementation of key technologies such as 3G, LTE networks and FTTx and WiMAX across Russia’s telecommunications sector
  • Value data for the market and for key segments and sub-segments
  • Forecasts that describe expected development in this market and in each segment
  • Market evaluation in accordance with ARPU, AUPU, APPM, churn and CAPEX indices.
  • Updates on telecoms sub-segments such as IP TV and satellite communications.
  • Review of B2B and wholesale telecommunications services market in Russia.
  • Machine-to-machine (M2M) services uptake.

 

Benefit from complete answers to vital market questions…

 

  • What is the current value of the Russian telecommunications market? The fixed-line telephony segment? Mobile telephony and Internet services?
  • Which segments are expected to experience the fastest rate of growth in the coming years?
  • How have macroeconomic conditions in Russia influenced the telecommunications market?
  • What is the value of current investment in the infrastructure of the Russian telecommunications sector?
  • What expansion plans are in the pipeline for expansion of the infrastructure?
  • What additional upgrades are needed and which technologies must be supported?

 

Did you know, that...

 

  • The value of the telecommunications market in Russia will increase by 0.7% in 2015.
  • Mobile telephony accounts for the largest part of telecoms spending in Russia.
  • MTS, VimpelCom, MegaFon and Rostelecom control approx. 90% of the Russian telecoms market.
  • Fixed-line telephony penetration in Russia amounted to 27% in 2014.
  • The number of SIM cards in Russia is expected to reach 243 million at the end of 2015, representing a penetration rate of 169%.
  • 70% of Russian households were already connected to broadband in June 2015.
  • In 2014 there were approx. 71m internet users in Russia. 

 

Companies analyzed in this report...

 

Alfa Group, AF Telecom, Akado, Central Telegraph, Enforta, ER-Telecom, Megafon, MGTS, Motiv, MTS, MTT, Rostelecom, Sistema, Skartel (Yota), SkyLink, Smarts, Strela Telecom, TatTeleCom, Tele 2, TTK, Vimpelcom, WestCall

 

Businesses that routinely make use of this document include…

 

  • Telecommunications providers currently serving the Russian market
  • Companies considering entry onto the Russian market
  • Marketing agencies and in-house marketing teams
  • Research and business consulting firms
  • Banking and investment specialists
  • Governmental entities and commerce groups that work to promote the industry.

 

This publication is a must for companies engaged in…

 

  • Furnishing supplies and services to customers on the Russian telecommunications market
  • Examining the possibilities for merger/acquisition activity
  • Creation of a more efficient growth strategy
  • Sales of hardware and other ICT services for this market
  • Estimation of expected revenue
  • Marketing telecommunications products and services in Russia
  • Locating the right investment options
  • Report creation for executive and shareholder consumption.

 

Extract from this report

  • With the growing maturity of telecommunications markets in big urban centres Russian operators increased the investments in the smaller towns but this process has not yet become a mainstream in 2014 or in H1 2015. Russian companies carry out pretty cautious regional investments explaining this by a long payback period.
  • 3G mobile telephony technology is being successively developed in Russia. In 2007 the three biggest mobile operators received licenses for providing 3G services in the country and in June 2015 3G networks covered main Russian cities where 85% of the population of the country lives. Visible improvement in the quality of 3G internet has also been observed.
  • In the last five years voice traffic, especially DLD and ILD, has been migrating from fixed-line to mobile networks. However since 2014 both fixed and mobile voice telephony providers have started to suffer from the growing popularity of a free OTT telephony available in the internet that hampers traditional voice service revenues.

 

Market commentary by expert

 

"Russian telecoms market constantly evolves and develops. There have been several challenges confronting Russian telecommunications operators over the last two years or so. First of all there has recently been relatively modest overall market growth and the maturity of the main market segments. In 2014-2015 the providers needed to adjust their market strategies paying more attention to operational efficiency and retention of the customers instead of aggressive expansion which was the cornerstone of the market development in the past 15 years.

 

The operators also need to search for some new sales revenue drivers, new solutions and market niches. Other critical challenge is to adapt to continuous decline in service prices. Operators mention that telecommunications are among very few services markets in the country which do not show any price adjustment to the inflation which accelerated the growth in Russia in the beginning of 2015 after devaluation of rouble in the end of last year. "

 

Paweł Olszynka,

 

Head ICT Market Analyst, PMR

 

 

We use PMR's services due to their analysts' extensive experience in market analysis, their high quality and level of engagement in the market research carried out for us. We consider PMR a competent and professional company and recommend them as a reliable partner in the area of economic information and market analysis. Senior Trade and Investment Adviser, British Embassy in Warsaw
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  • Methodology
  • Executive summary
    • Mobile telephony market
      • Current situation on the mobile market
      • Forecasts for the mobile telephony market
    • Fixed-line telephony market
      • Current situation on the fixed-line market
      • Forecasts for the fixed-line telephony market
    • Data transmission and ISP market
      • Current situation in the data transmission and ISP market
      • Forecasts for the data transmission and ISP market
  • Overview of the telecommunications market in Russia
    • Current market situation
    • Key trends, characteristics and events
      • Calendar of key market news and developments on the Russian telecommunications market between 2004 and September 2015
    • Key players on the telecommunications market
      • Consolidation of the telecommunications industry
      • Main capital groups on the Russian telecommunications market
    • Development of telecommunications infrastructure
    • Wholesale telecommunications market
      • Traffic transmission, IP transit and line rental market
    • Telecommunications services for B2B segment
    • Economic and demographic situation
      • Macroeconomic situation
      • Demographic indicators
    • Market transparency and business risk
    • Regulatory issues and institutional environment
      • Russian Federal Law on Communications
      • Ministry of Mass Communications
    • Market development forecast for 2015-2020
      • Key market trends expected between 2015 and 2020
      • Market value forecasts for 2015-2020
    • Extra: Regional telecom market in Crimea
  • Mobile telephony market
    • Current market situation
    • Structure of the mobile value added services market
    • Market structure
    • Development of MVNOs
    • Key trends on the mobile market
      • Number of mobile telephony users and penetration
      • Pre-paid and post-paid subscribers
      • Business vs individual users
      • Key market indicators (ARPU, AUPU, APPM)
      • Cost of the mobile telephony services
    • Mobile retail
    • Mobile handset market
    • Key players on the mobile market
      • Mobile TeleSystems
      • MegaFon
      • VimpelCom
      • Tele2 Russia
    • Developement forecasts for 2015-2020
      • Key short-term trends
      • Market value forecasts for 2015-2020
    • Extra: M2M services market in Russia
  • Fixed-line telephony market
    • Current market situation
    • Breakdown of the fixed-line telephony market
    • Situation in individual market subgroups
      • Local fixed-line telephony market
      • Zone, DLD and ILD telephony market
    • Key trends on the fixed-line telephony market
      • Fixed-line telephony penetration
      • Tariffs for fixed-line telephony services
    • Key players on the fixed-line telephony market
    • Profiles of leading companies on Russian fixed-line telephony market
      • Rostelecom
      • MGTS (MTS)
      • MTT
      • TatTeleCom
    • Market development forecast for 2015-2020
      • Key market trends expected between 2015 and 2020
      • Market value forecasts for 2015-2020
  • ISP market
    • Current market situation
    • Fixed-line broadband internet access market
    • Mobile internet access
    • Key trends on the ISP market
      • Popularity of fixed-line and mobile internet access technologies
      • Number of internet users and penetration
      • Prices and quality of wired internet access
      • Prices and quality of mobile internet access
    • Key players on the ISP market
    • Profiles of leading internet providers
      • Akado Group
      • ER-Telecom
      • Prestij Internet (brand name Enforta)
      • TTK (TransTelekom)
    • Market development forecasts for 2015-2020
      • Key markets trends which should be visible between 2015 and 2020
      • Market value forecasts for 2015-2020

Graphs

  • Value (RUB bn) and growth rate (%) of the end user telecommunications market in Russia, 2003-2014
  • Value of major subgroups of the end user telecommunication services market in Russia (RUB bn), 2001-2014
  • Value (RUB bn) and number of M&A transactions in telecommunications industry in Russia, 2010-H1 2015
  • Total length of nationwide and zone level fibre optical backbone in Russia ('000 km), 2010-2014
  • Total length of backbone networks of leading Russian operators ('000 km), 2010-2014
  • Value of line rental, voice traffic transit and IP transit market in Russia (RUB bn), 2003-2014
  • Value of main segments of the corporate telecommunications market in Russia (RUB bn), 2007-2014
  • Total number of business subscribers of leading telecommunications operators in Russia ('000), 2012-2014
  • Nominal GDP in Russia (RUB bn, € bn), 2003-2014
  • Key economic indicators in Russia – GDP growth rate (%, y-o-y), CPI (%, y-o-y), unemployment rate (%, end of the year), 2003-2014
  • Growth rate of real disposal income in Russia (%), 2003-2014
  • Investments in the telecommunications industry (RUB bn) in Russia and growth rate (%), 2006-2014
  • Value (RUB bn) and growth rate (%) of the telecommunications market in Russia, 2014-2020
  • Value of major subgroups of the end-user telecommunication services market in Russia (RUB bn), 2014-2020
  • Value (RUB bn) and growth rate (%) of the mobile telecommunications market in Russia, 2004-2014
  • Value of voice and non-voice value added services in mobile telecommunications networks in Russia (RUB bn), 2004-2014
  • Growth rate of voice and non-voice value added services in mobile telecommunications networks in Russia (%, y-o-y), 2004-2014
  • Value of main segments of the VAS market in Russia (RUB bn), Q1 2011-Q2 2015
  • Value share of VAS revenue of leading mobile operators on the telecommunications market in Russia (RUB bn, %), 2014
  • Value share of VAS revenue of leading mobile operators on the telecommunications market in Russia (RUB bn, %), 2013
  • Mobile VAS ARPU in Russia (RUB), Q1 2011-Q2 2015
  • Structure of the mobile telephony market in Russia – shares of operators by number of active SIM cards (million, %), H1 2015
  • Structure of mobile telephony market in Russia – shares of operators by number of active SIM cards (million, %), H1 2014
  • Structure of the mobile telephony market in Russia – share of operators by mobile service revenues (RUB bn, %), H1 2015
  • Structure of the mobile telephony market in Russia – share of operators by mobile service revenues (RUB bn, %), H1 2014
  • Estimated number of MVNOs' subscribers in Russia ('000), 2009-2015
  • Number of registered SIM cards (million) and growth rate (%) on the mobile telephony market in Russia, 2004-2014
  • Total number of SIM cards distributed by operators and net additions in Russia (million), 2006-2014
  • Share of pre-paid and post-paid subscribers in total number of SIM cards served by mobile telephony operators in Russia (%), 2004-2014
  • Value of institutional segment on the market of mobile telephony services in Russia (RUB bn), 2007-2014
  • Monthly average mobile ARPU (RUB) and growth rate (%, y-o-y) in Russia, 2004-2014
  • Monthly ARPU of leading mobile operators in Russia (RUB), 2011-2014
  • Voice and VAS monthly mobile ARPU in Russia (RUB), 2007-2014
  • AUPU (minutes) and growth rate (%) on the mobile telephony market in Russia, 2004-2014
  • Average price per minute (RUB) at the mobile telephony market in Russia, Q1 2011-Q2 2015
  • Average cost of a minute of local call in mobile networks and cost of an SMS in Russia (RUB), May 2004-May 2015
  • Volume share of main channels in sales of new mobile telephony service packages in Russia (%), 2014
  • Total sales of mobile phones, smartphones and tablet computers in Russia (million), 2009-H1 2015
  • Value of main segments of MegaFon’s mobile service revenues in Russia (RUB bn), 2009-2014
  • Total number of MegaFon's mobile telephony base stations in Russia, 2013-2014
  • Volume share of sales channels in the connection of new subscribers (%), Q1 2015
  • Total monthly spending on mobile telecommunication services in Russia (RUB), 2011-H1 2015
  • Total number of ported mobile numbers and portability inquiries in Russia ('000), 2014-H1 2015
  • Value of voice and value added services segments of the mobile telephony market in Russia (RUB bn), 2014-2020
  • Number of SIM cards (million) and growth rate (%) in Russia, 2014-2020
  • Annual growth rate of the mobile telecommunication market value in Russia (%), by segment, 2014-2020
  • Total number of M2M connections in Russia (million), 2009-H1 2015
  • Number of SIM cards and volume share of main operators on the M2M market in Russia (million, %), 2014
  • Value (RUB bn) and growth rate (%) of the fixed-line telephony market in Russia, 2004-2014
  • Value share of main subgroups of the fixed-line telephony market in Russia (RUB bn, %), 2014
  • Value share of main subgroups of the fixed-line telephony market in Russia (RUB bn, %), 2013
  • Value share of SIP and traditional fixed-line telephony subgroups in Russia (RUB bn, %), 2014
  • Value share of SIP and traditional fixed-line telephony subgroups in Russia (RUB bn, %), 2013
  • Total volume of voice traffic of SIP telephony operators in Russia (million minutes), 2010-H1 2015
  • Value (RUB bn) and growth rate (%) of the local fixed-line telephony market in Russia, 2004-2014
  • Value share of institutional and residential subgroups as a proportion of the local telephony market in Russia (RUB bn, %), 2014
  • Value share of institutional and residential subgroups as a proportion of the local telephony market in Russia (RUB bn, %), 2013
  • Value of main subgroups of fixed-line telephony revenues paid to operators in Russia (RUB bn), 2010-2014
  • Value and volume shares of leading operators on the local fixed-line telephony market in Russia (%), 2012-2014
  • Value (RUB bn) and growth rate (%) of the fixed-line ILD/DLD telephony market in Russia, 2004-2014
  • Value of individual subgroups of the ILD/DLD market in Russia (RUB bn), 2009-2014
  • Value of residential and institutional subgroups of DLD/ILD and zone telephony in Russia (RUB bn), 2007-2014
  • Value share of Rostelecom on the ILD/DLD and internal zone telephony markets in Russia (%), 2010-2014
  • Number of fixed telephony lines (million) and growth rate (%) in Russia, 2004-2014
  • Number of fixed telephony lines in residential subgroup (million) and growth rate (%), 2004-2014
  • Fixed-line telephony penetration in Russia (%), 2004-2014
  • Average monthly prices of unlimited local telephony service in Russia (RUB), 2004-H1 2015
  • Average price of a one-minute local call via fixed networks in Russia (RUB), 2004-H1 2015
  • Average per minute price of DLD calls in Russia (RUB), 2004-H1 2015
  • Share of main projects in CAPEX spending of Rostelecom (%), 2015f
  • Share of main projects in CAPEX spending of Rostelecom (%), 2014
  • Value share of main services in sales revenue of MGTS (RUB bn, %), 2014
  • Value share of main services in sales revenue of MGTS (RUB bn, %), 2013
  • Value share of main subgroups as a proportion of sales revenue of MTT (RUB bn, %), 2014
  • Value share of main subgroups as a proportion of sales revenue of MTT (RUB bn, %), 2013
  • Estimated value of fixed-line and mobile sales of DLD/ILD telephony services in Russia (RUB bn), 2009-2014
  • Total number of active fixed telephony lines in residential and business subgroups of the market in Russia (million), 2014-2020
  • Value of main subgroups of the fixed-line telephony market in Russia (RUB bn), 2014-2020
  • Growth rate of main subgroups of the fixed-line telephony market in Russia (%, y-o-y), 2014-2020
  • Value (RUB bn) and growth rate (%) of the ISP market in Russia, 2004-2014
  • Value share of main subgroups of the ISP market in Russia (RUB bn, %), 2014
  • Value share of main subgroups of the ISP market in Russia (RUB bn, %), 2013
  • Value (RUB bn) and growth rate (%) of the fixed-line broadband internet market in Russia, 2004-2014
  • Total number of residential broadband internet subscribers in Russia (million) and growth rate (%), 2006-2014
  • Value of residential and corporate subgroups of the fixed-line ISP market in Russia (RUB bn), 2008-2014
  • Value (RUB bn) and growth rate (%) of the mobile and wireless ISP market in Russia, 2006-2014
  • Total number of smartphones, tablet PCs and USB modems sold in Russia (million) 2012-2014
  • Sales of mobile data services (RUB bn), by leading operators in Russia, 2010-2014
  • Value share of main fixed-line broadband technologies on the ISP market in Russia (%), 2010-H1 2015
  • Total number of 3G and 4G base stations in Russia ('000), 2011-H1 2015
  • Number of weekly internet users (million) in Russia and growth rate (%), 2004-2014
  • Internet penetration in Russia (%), 2004-2014
  • Estimated volume share of home internet users (%), by speed of connection in Russia, June 2015
  • Estimated volume share of home internet users (%), by speed of connection in Russia, June 2014
  • Monthly average spending on mobile internet access services in Russian regions (RUB, including VAT), August 2014-August 2015
  • Number of cities in which federal ISP providers have a presence in Russia, 2013-2015
  • Total number of ER-Telecom service subscribers at end of year (million), 2010-2014
  • Average fixed-line internet connection speed bought by home users in Russia (Mbit/s), 2012-2014
  • Share of main handsets and devices in the total volume of mobile data traffic in MTS network in Russia (%), H1 2014-H1 2015
  • Value (RUB bn) and growth rate (%) of the ISP market in Russia, 2014-2020
  • Value of fixed-line, mobile and fixed wireless segments of the ISP market in Russia (RUB bn), 2014-2020
  • Number of fixed and mobile internet subscribers and internet users in Russia (million), 2014-2020
  • Volume share of main internet access technologies in the residential segment of the market in Russia (%), 2014-2020

Tables

  • Telecommunications market in Russia: key data and forecasts, 2014-2020
  • Key data on the Russian telecommunications market
  • Largest telecommunications companies in Russia, 2014
  • Important M&A transactions in the telecommunications industry in Russia, 2013-August 2015
  • Sistema revenues from telecommunications assets (RUB bn) and growth rate (%), 2005-2014
  • Key data on the data transmission and wholesale telecommunications market in Russia
  • Largest telecommunications operators in B2B segment of the telecommunications market in Russia, 2010-2014
  • Most highly populated Russian cities (million), January 2015
  • CAPEX of leading telecom operators in Russia (RUB bn), 2008-2015
  • Key data on the mobile telephony market in Russia
  • Penetration of mobile telephony by macro-regions of Russia (%), 2012-2014
  • Example of tariff plans of some service packages offered by leading mobile operators in selected regions of Russia, August 2015
  • Average cost of a minute of local call in mobile networks in Russia (RUB), by federal district, May 2012-May 2015
  • Total number of branded stores (including franchisee stores) of mobile operators in Russia, 2011-H1 2015
  • Sales (RUB bn) generated on the mobile telephony market by major providers in Russia and number of SIM cards (million), 2013-H1 2015
  • Mobile TeleSystems: key financial indicators in Russia, 2008-H1 2015
  • Value share of main services in consolidated sales revenue of MTS Group (%), 2011-2014
  • Selected operating indicators of MTS in Russia, 2008-H1 2015
  • Frequency bands available for MTS in Russia, August 2015
  • MegaFon: key financial data in Russia, 2007-H1 2015
  • Selected operating indicators of MegaFon in Russia, 2007-H1 2015
  • Number of subscribers of MegaFon in Russia (million), by federal district, 2012-2014
  • Radio bands available for MegaFon, August 2015
  • VimpelCom: key financial indicators in Russia, 2008-H1 2015
  • Sales revenue of VimpelCom in Russia (RUB bn), by main services, 2011-2014
  • Selected operating indicators of VimpelCom in Russia, 2008-H1 2015
  • Frequency bands available for VimpelCom, August 2015
  • Tele2 Russia: key financial data, 2008-H1 2015
  • Operating indicators of Tele2 Russia, 2008-H1 2015
  • Radio bands available for Tele2 in Russia, August 2015
  • Key data on the end-user fixed-line telephony market in Russia
  • Value of main subgroups of the fixed-line telephony market in Russia (RUB bn), by federal districts, 2014
  • Number of fixed telephony lines per 100 head of population in Russia, by federal district, 2014
  • 10 largest incumbent fix-line telephony operators in Russia, July 2015
  • Average monthly price of unlimited local telephony service in Russia (RUB), by federal district, June 2012-June 2015
  • Leading fixed-line telephony operators in Russia, 2012-2014
  • Rostelecom: key financial data, 2008-H1 2015
  • Value of main subgroups as a proportion of Rostelecom's sales revenue in Russia (RUB bn), 2008-2014
  • Rostelecom: revenue breakdown, 2010-H1 2015
  • Rostelecom: key operational indicators, 2009-H1 2015
  • MGTS: key financial and operational data, 2007-H1 2015
  • MTT: key financial and operational data, 2007-2014
  • TatTeleCom: key financial and operational data, 2007-H1 2015
  • TatTeleCom: revenue from provision of telecommunication services, 2011-H1 2015
  • Key data on the ISP market in Russia
  • Largest ISPs in Russia – number of broadband subscribers (million), 2011-H1 2015
  • Main segments of the Russian mobile internet access services market, 2012-2014
  • Internet penetration (%), by category of localities in Russia, 2011-2015
  • Minimum monthly price of fixed-line broadband connection (RUB) and average download speed in fixed-line networks in Russia (Mbit/s), February 2015
  • Average monthly spending on home internet in Russia (RUB, including VAT), by main regions at the end of the period, 2010-August 2015
  • Example of mobile internet monthly prices of leading providers in Moscow (RUB, including 18% VAT), September 2015
  • Monthly minimum cost of mobile access service and average mobile data limit per month in the regions of Russia, February 2015
  • Leading internet services providers in Russia, 2015
  • Akado Group: key financial data, 2008-2014
  • ER-Telecom: key financial data (RUB bn), 2005-2014
  • Enforta: key financial data (RUB bn), 2008-2014
  • TTK: key financial data (RUB bn), 2007-2014