Russia:  Internet Usage

PC penetration is still quite low compared to the West. The following statistics on PC's in Russia were pulled from a US Commercial Service report showing the improvement in personal computer use, but fall short of proving real penetration.

Russia has 6 million computers, one third of which have Internet access.  IBS, a major Russian computer and system integration company, estimated that during 2000 the number would grow by 20%.  In 1999, the Russian PC market grew 26% (in terms of units), reaching a penetration rate of 4% but only 2% in monetary terms; the latter is attributed to considerable price reductions.  Portable PCs have a thin margin in Russia and constitute only about 10% of PC sales.  Nevertheless, industry experts say that the sales for portable PCs with built-in modems are on the rise.

There are other hindering factors to Internet usage including poor fixed line networks in Russia and fees for telephone use on local calls above and beyond the usually expensive ISP charges.  It is easy to see how these factors will hurt Internet adoption by a relatively poor nation.  ISP's in Russia, currently at about 300-350, will have to find innovative ways to attract and retain those customers who are fortunate enough to have the disposable income for Internet service.  The advent of ISDN, ADSL and WAP will help to achieve more Internet diffusion in Russia, but will still fall far short of the numbers currently seen by their neighbors In the EU.

There are some conflicting reports for current and projected Internet usage in Russia into the mid 2000’s.  BIA Financial Network, a Virginia based research and consulting firm, states only about 2 million in Russia spend any significant time on-line per week.  On the high end, the Russian Nat’l Institute of Social and Psychological Research reports that there are currently 5.7 million occasional users of the Internet in Russia with projections reaching as high as 7.8 million by year end 2000.   Others, such as IDT, put Internet usage reaching 6.4% of the population or 9.4 million by 2004.  The exact numbers are elusive and probably dubious, but providing estimates on Internet usage in a country such as Russia certainly can be an extremely difficult task.  Over half Internet users access the Internet while at work, 18% use Internet at educational institutions, and 26% surf the web at home.  One fifth of Russian Internet users reside in Moscow.

No matter what the statistics show in growth, Bazar.net's CEO still claims Russia is seven to eight years behind the US in the Internet.
 
 

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