Broadband in Russia: Investment in regional networks is essential as big cities near saturation

August 13, 2014  | Subscribers Only

Alzbeta Fellenbaum Alzbeta Fellenbaum Manager – Research and Analysis, Service Providers & Platforms
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Over the past decade, broadband adoption and Internet use in the Russian Federation has demonstrated explosive growth. Rising from just four million of Russians going online everyday in 2004 to 56 million Russians (48% of population) using the Internet every day with 20.8 million households (36.6%) having broadband connections at home at the end of 2013. IHS expects this growth to continue with household broadband penetration reaching 47.2% in 2018 with a total of 28.1 million broadband connected households. This report offers insight into the latest trends and key market players in the Russian broadband market.

Highlights:

  • In 2013, 37% of Russian households had a broadband connection at home, representing nearly 21 million homes. IHS forecasts household broadband penetration will grow to 47% by 2018.
  • Broadband household penetration growth slowed down to a single digit growth for the first time in 2013, and even though it remains reasonably high at 7.8%, it is a steep decline compared to the 17.4% growth in 2012 and 28.2% growth in 2011.
  • There is a stark difference between big cities in Central Russia, where there is an abundance of broadband providers and smaller, more remote towns and cities in the regions, where access to broadband remains challenging.
  • Rostelecom maintained its dominant position in the Russian broadband market with 9.8 million residential broadband subscribers and a 40% market share.
  • In 2013, VimpelCom lost its third place in the Russian broadband market to MTS after four quarters of consecutive negative net additions.
  • TTK, number five in the Russian broadband market, is the fastest growing player in the sector with 5.9% market share and a 1.4 million broadband subscriber base. It focuses on providing broadband services in smaller towns and cities in the Far East and Ural regions.

 

In this report:

Trends, developments and overview of key players in the Russian broadband market.

List of tables and charts:

  • Russia: Broadband households and penetration
  • Russia: Broadband connections by technology (000s)
  • Russia: Share of broadband subscribers Q4 2013 (%)
  • Rostelecom: DSL vs FTTx lines
  • Rostelecom: Share of broadband subs by regions Q4 2013 (%)
  • Rostelecom: Broadband subscribers by region (000s)

Number of pages: 7

Number of charts and tables: 6

Alzbeta Fellenbaum

Manager – Research and Analysis, Service Providers & Platforms

Ms. Alzbeta Fellenbaum, a principal analyst and manager of research at IHS Markit, leads strategic analysis in telecom for the Service Providers & Platforms team.

Geography
Russia
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