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Telecommunications industry in Russia - statistics & facts

Russia is one of the world's largest telecommunications markets. Mobile cellular services are widely used by the country's large population, resulting in one of the highest subscription rates. More than 127 million people use the internet in Russia, more than in any other European country. The industry is currently challenged by Western export bans on high-tech equipment to Russia in response to the invasion of Ukraine that began in February 2022. Major telecommunications equipment providers, such as Ericsson and Nokia, left the Russian market. To support the domestic industry, the government offered subsidies and cheaper loans to Russian manufacturers.

Barriers to 5G adoption in Russia

5G in Russia is only deployed by a few operators and in a limited or test mode. Government requirements have delayed the adoption process, as the 3.4 to 3.8 GHz frequency band, used for 5G in some other countries, had been previously reserved for government and military use in Russia. Therefore, the spectrum of 4.4 to 4.9 GHz is planned to be used for 5G connections in Russia. Furthermore, the exodus of Western equipment providers from Russia is slowing down 5G adoption, as the government is required to use only domestically built equipment for 5G networks. Pilot testing of Russian-built 5G is planned for 2025 in cities with over one million inhabitants.

The Big Four mobile operators in Russia

Russia's four major mobile operators are often referred to as the Big Four. They are MTS (or Mobile TeleSystems), MegaFon, Beeline, and Tele2 (owned by Rostelecom). Beeline is a brand of VimpelCom, the Russian subsidiary of the Dutch operator Veon. However, Veon will sell Beeline to its local managers in 2023. MTS is the highest earning mobile operator in Russia. Founded in 1993, it also operates in Armenia and Belarus. One quarter of Russian smartphone users reported having MTS as their mobile carrier in 2022, while just over 20 percent were Tele2 customers and 16 percent used MegaFon. Furthermore, MegaFon had the highest mean download speed among the Big Four, while Beeline had the lowest.

The transformation of Rostelecom

Rostelecom, established in 1993 and co-owned by the Russian government, has traditionally been labeled as the country's market leader for fixed-line voice services. However, as Russia sees a decline in landline phone usage, the company has steadily expanded to other telecommunications segments. In 2020, Rostelecom fully acquired the Russian subsidiary of the Swedish mobile operator Tele2, making mobile services its largest source of revenue. In 2021, Rostelecom earned twice as much from fixed broadband internet services than from fixed-line telephony. Furthermore, the company now offers pay TV, information security, and digital services, including Wink, an over-the-top (OTT) video platform.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Mar 13, 2023

Key insights

Market size of telecommunications in Russia
1.84tr RUB
Gross value added of telecommunications in Russia
1.03tr RUB
Telecommunications advertising growth in Russia
14%
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Editor’s Picks Current statistics on this topic

Telecommunications market revenue in Russia from 2015 to 2022 (in billion Russian rubles)

Telecommunications

Telecommunications market revenue in Russia 2015-2022

Estimated year-over-year telecommunications market growth in Russia in 2022, by segment

Telecommunications

Telecommunications market growth in Russia 2022, by segment

Leading telecommunications companies in Russia in 2021, by revenue (in billion Russian rubles)

Operators & Providers

Highest earning telecommunications companies in Russia 2021

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