Synopsis

Russia possesses the largest mobile market in Europe. A number of mobile network operators offer services although the market is dominated by three major operators (MTS, Vimpelcom and MegaFon), which have expanded nationally through acquisitions of smaller regional service providers. Competition in the key markets of Moscow and St Petersburg is fierce, due to higher concentration of wealth in the two cities. Russia’s recent economic woes, due to the global financial crisis, have impacted growth although growth is expected to pick up again in line with the overall economy. Mobile SIM card penetration has surpassed 150% although actual mobile user penetration is lower. Deployment of WCDMA/HSPA networks presents a new growth opportunity through the offering of mobile broadband services, while the evolving LTE sector offers considerable promise for rural broadband.

This report provides a concise overview of Russia’s mobile market, covering regulatory developments, the major mobile operators including MegaFon, Vimpelcom and Tele2, as well as technologies and mobile data, content and applications, and a variety of financial and operational statistics.

Key developments:

Yota and Rostelecom agree to share resources for an LTE network; MTS and Vimpelcom sign LTE network construction deal; Rostelecom given Ministry of Defence clearance to develop LTE in the 2.3GHz band; imminent launch of LTE in Novosibirsk; Vimpelcom merges with seven subsidiary companies; MTS awarded Moscow’s first LTE license; MegaFon begins migrating GSM in Moscow to 3G in the 900MHz band; operator data to Q3 2011.

Companies covered in this report include:

MegaFon, Tele2 Russia, Skylink, Volga Telecom, SMARTS Group, Uralsvyazinfor

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