In September 2020, the volume of communication services provided to enterprises of all activity types reached RUB 184.1 billion increasing by 8.3% year-on-year, by 2% against August 2020. For the first nine months of 2020, the volume of communication services amounted to RUB 1,569.5 billion, up 4.7% year-on-year, according to the latest issue (No. 1392) of AK&M Information Agency's "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Telecommunications" monthly paper dated November 5, 2020.
The volume of paid communication services provided to the population in September 2020 amounted to RUB 119.5 billion decreasing by 4.2% against September 2019, while growing by 1% against the previous month. The volume of communication services provided to the population in January-September 2020 decreased by 5.6% amid the ongoing development of voice communication services in messengers and other similar web apps, the growth of tariffs unable to offset this slump.
The Internet continues to gain popularity in Russia. According to Deloitte data, the percentage of wireless Internet users has been growing for five years in a row, reaching 53% in 2020 from 44% five years ago. The mobile Internet user base expansion has significantly accelerated to 41% this year versus 29% in 2015. The decline in the direct cable Internet access has stopped at 42-43%.
The Russian Internet Freedom Index fell below zero for the first time since it appeared 5 years ago. According to the Internet Protection Society, the Internet Freedom Index is currently -37 points, which is 121 points below the March level. The last five months witnessed several events that have undermined the internet freedom in Russia. In April, the Federal Tax Service got access to information about electronic wallets of all Russians. In May, the Prosecutor General's office was given the power to block anything at all without accountability or public control whatsoever. In the summer, President Vladimir Putin signed a law on creating a super-register of data on all Russians. In August, the Government decided to make all defense information secret.
In October 2020, the State Duma passed in the first reading a draft law on liability for non-removal of prohibited information from the Internet, while the fines to be imposed on offenders was increased 4 times. Under the document, the fine for citizens will range from RUB 50,000 to RUB 100,000 for citizens, from RUB 200,000 to RUB 400,000 for officials, from RUB 800,000 to RUB 4 million for legal entities. For repeated commission of these offenses, the fines can increase to RUB 8 million.
For an in-depth review, see issue No. 1397 of the "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Telecommunications" monthly paper issued on November 5, 2020. The paper reviews the Russian communications and telecommunications market, including mobile and broadband Internet services, digital TV and online cinema theatres, the Russian regulatory framework and legal innovations influencing the industry, the industry's performance as a whole, innovative strategies and activity priorities for the Big Four operators, including the 5G and MVNO segments, as well as their tariff policies . This is complemented by a brief overview of the stock market and an M&A update, as well as news of the leading industry players.
