BMI View : We have not made forecast revisions in this quarterly update. The Russian market continues to perform in line with BMI forecasts. Russia ' s telecoms operators are focused on upgrading networks with a view to monetising growing demand for non-voice services, particularly video based content. The trend for convergence will be slow to gather momentum outside the major population centres, owing to low consumer spending power and a lack of infrastructure. Therefore, in saturated urban markets consolidation will be the main growth mechanism. However, restricted access to foreign-made equipment will prove to be a drain on operators' finances and will compromise quality of service and impede long-term expansion initiatives.
|Strong Uptake Of Mobile Broadband|
|3G/4G And Mobile Subscriptions (2013-2020)|
|e/f = BMI estimate/forecast. Source: BMI, operators|
Latest Updates & Industry Developments
The mobile market returned to growth in Q216, driven by 4G LTE launches in new regions and price competition wrought by MVNOs as well as a stronger Tele2 Russia. Q116 saw the market decline by almost 1.3mn subscribers as a significant number of inactive subscribers were deactivated. Q2 and Q3 growth has been insufficient to offset all the losses form the first quarter of the year.
MegaFon and Tele2 are proceeding with mobile tower spin-off initiatives. Cost savings would give them greater scope to invest in new applications and services but foreign involvement would be difficult to arrange given the country's increasingly isolationist stance.
The Russia Telecommunications Report features BMI Research's independent industry forecasts on the future strength of Russia's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Russia Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Russia.
- Benchmark BMI's independent telecoms industry forecasts for Russia to test other views - a key input for successful budgeting and strategic business planning in the Russian telecoms market.
- Target business opportunities and risks in Russia's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Russia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
BMI Industry Forecast Scenario
Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
- Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
- Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.
BMI’s Telecommunications Risk Reward Index
BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:
- Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
- Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.