3 principal traits fueled Russian telecom development in 2006: (a) liberalization of the long-distance telecom market and creation of new operator interconnection rules, (b) broadband internet get right of entry to as the brand new main market segment, and (c) the approaching issuance of third-generation (3G) licenses amid one hundred percent mobile-quarter penetration and value-brought offerings (VAS)-area increase.
In 2007, there may be growing opposition within the lengthy-distance market phase. iptv Fixed-line operators will similarly diversify their services, particularly among broadband and convergent offerings. Different leading marketplace sectors are digital subscriber line era, internet protocol tv (IPTV) answers, subsequent-technology community equipment, and passive optical community era. The cell zone will characteristic increasing competition for subscriber loyalty, supplying heavy VAS content material (cell tv and interactive video games) as operators installation 3G networks. Cable television, broadcasting, and satellite tv for pc operators will enrich content and make bigger their offerings to subscribers.
Russia’s steady macroeconomic performance (6.Eight percentage gross domestic product growth in 2006) elevated government and corporate spending on facts and verbal exchange generation (ICT) infrastructure and offerings, and developing local customer spending increased telecom-zone growth. In 2006, the Russian telecom-sector revenues reached $29.6 billion, a 26 percent growth over 2005, as reported through iKS-Consulting. The cell communications region grew 34 percent and passed $10.Five billion. But, broadband access showed the most important growth of more than 42 percent.
In 2006, in keeping with the Russian Ministry of records technologies and Communications (MITC), the overall ICT market handed $40 billion. Nearby capital investments totaled $five.6 billion, a 7.1 percent boom over 2005, at the same time as foreign investments totaled $4.1 billion, a 19.Five percent annual boom. The Russian internet user base reached 25 million, and revenues from net get entry to and statistics transmission services reached $2.1 billion, or 24 percentage growth, in comparison with $1.7 billion in 2005.
Liberalization of the lengthy-Distance marketplace
January 2006 started out with a historic event. Rostelecom, the countrywide carrier and dominant player at the long-distance telecom marketplace, awakened to a new competitive truth–the marketplace become liberalized. Definitely, extra than 20 new operators acquired licenses to provide lengthy-distance and global conversation offerings. Analysts predicted the Russian long-distance telephony marketplace size at $1.Nine billion to $2.1 billion in 2006.
The demanding situations for brand spanking new gamers remain high. Proudly owning a license for long-distance offerings isn’t a panacea. A brand new operator should have a national network and an agreement with regional operators for the ultimate mile connection. Moreover, new interconnection rules divided operators into three main tiers: nearby, zonal, and lengthy-distance. Long-distance operators now should connect to give up-users handiest through regional operators (nearby level) and pay interconnection prices for every call.
The primary contender, Multiregional TransitTelecom (MTT), commenced providing services in 2006 and became expected to challenge Rostelecom’s role. But, with its modernized community, exact pricing, and improving customer support, Rostelecom did no longer yield an awful lot floor to MTT in 2006, and the MTT subscriber base reached most effective 2 million (four percent). Nonetheless, MTT expects to seize 15 percent of the market percentage by means of 2008. With greater than 40 million subscribers, Rostelecom received 60 percent of the marketplace, at the same time as the smaller operators, consisting of net protocol vendors and grey-marketplace operators, fought for the rest.