Volume of telecom services provided to businesses increased by 14.1% in October 2020

AK&M 11 December 2020 12:29

In October 2020, the volume of communication services provided to businesses engaged in all types of activities reached RUB 192.8 billion increasing by 14.1% against October 2019, decreasing by 0.5 against September 2020. The volume of communication services provided to businesses for the 10-month period reached RUB 1,762.3 billion growing by 6.4% year-on-year. Paid services to the population amounted to RUB 118 billion in October decreasing by 4% year-on-year, by 0.3% against the previous month. The volume of communication services provided to individuals for the 10-month period in 2020 shrank by 5.5%, according to the latest issue (No. 1392) of AK&M Information Agency's "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Telecommunications" monthly paper dated December 9, 2020.

As forecasted by Russia's Ministry of Digital Development, Communications and Mass Media, the volume of the Russian telecommunications market may decrease by 2.5-3% in 2020 against the 2019 level (RUB 1.73 trillion). It should be noted however, that the pace of innovation has slowed down in Russia. According to a study by Boston Consulting Group (BCG), the share of Russian IT companies in the EM is less than 3%. Russia is one of the laggards among emerging markets in terms of the pace of establishment and market evaluation of new IT companies. According to BCG, Russian IT companies are valued twice below the global level.

In November, the State Duma of Russia introduced a draft law on penalties for telecom operators who did not use equipment to ensure stable Internet operation in Russia. It is proposed that the Code of Administrative Offences be amended to impose penalties up to RUB 1 million on Russian telecom operators and owners of service networks for failure to comply with the sustainable Runet requirements. The draft law is expected to be considered in the State Duma in the first reading in December.

For an in-depth review, see issue No. 1402 of the "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Telecommunications" monthly paper issued on December 9, 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.