Russia: Telecommunications Infrastructure

IT in the Russian Federation

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National IT Strengths & Weaknesses Size of Domestic IT Market National ICT Policies Telecommunications Infrastructure Telecommunication Deregulation & Liberalization Computing, Internet Diffusion & Cultural Attitudes toward Technology ICT Usage by Businesses: Electronic Commerce & E-Business E-Government Domestic Production: Software Development, Hardware Manufacturing, R&D IT Workforce IT Geographics IT Financing IT Legal Environment	Russia: Telecommunications Infrastructure Overview Physical infrastructure remains a problem for ICT advancement in Russia. “After all the macroeconomic and political change of the past decade, the infrastructure of this country is finally being formed,” says Sergei Tarasov, head of server seller Sun Microsystems’ operations in the former Soviet Union. (26) Rostelecom is still a strong monopoly in the long distance and international phone service market, and the waiting list for phones is extremely long at about 5 years. Most of the local phone providers are only partially privatized under the umbrella of the state holding company, Svyazinvest. Major investment in physical infrastructure is part of the eRussia program and most of the real investment won’t come until next year (budget permitting). (24) Providers (24) Rostelecom is the national long-distance and international provider Each region has a smaller local telephone service provider Major mobile providers are Beeline and Mobile Telesystems (MTS) Telephony 218 telephone lines per 1000 people (25) five year waiting list Local calls from landlines and mobile phones are relatively low cost in comparison to GDP Internet Internet hosts per 10,000 inhabitants: 22.22 (25) Internet users per host: 9.49 (25) Average monthly cost for 20 hours of internet access: US$14.83 (25) Broadband Only 2% of the populations has broadband access (25) E-Russia program promises all cities in Russia with populations over 30,000 people be connected as part of the country’s “fiber optic backbone” Mobile Cell phone usage per 1000: 140 (27) At the end of 2003, Russia had more than 35 million mobile phone users (19) In Moscow and St Petersburg, cell-phone use is nearly as prevalent as in New York City In 2002, Russians bought 1 million wireless phones per month Mobile-communications hardware is among the most in demand in Russia according to IDC Russia will need over $33B in investment over the next 10 years to satisfy demand in the market (19) Satellite Satellite communications is in relative high demand because of the country’s expansive territory and the poor conditions of it landline networks. (22) Forecasts indicate that by 2010 capacity demand will require as many as 380 transponders (22)

National IT Strengths & Weaknesses

Size of Domestic IT Market

National ICT Policies

Telecommunications Infrastructure

Telecommunication Deregulation & Liberalization

Computing, Internet Diffusion & Cultural Attitudes toward Technology

ICT Usage by Businesses: Electronic Commerce & E-Business

E-Government

Domestic Production: Software Development, Hardware Manufacturing, R&D

Russia: Telecommunications Infrastructure

Overview

Physical infrastructure remains a problem for ICT advancement in Russia. “After all the macroeconomic and political change of the past decade, the infrastructure of this country is finally being formed,” says Sergei Tarasov, head of server seller Sun Microsystems’ operations in the former Soviet Union. (26)

Rostelecom is still a strong monopoly in the long distance and international phone service market, and the waiting list for phones is extremely long at about 5 years. Most of the local phone providers are only partially privatized under the umbrella of the state holding company, Svyazinvest. Major investment in physical infrastructure is part of the eRussia program and most of the real investment won’t come until next year (budget permitting). (24)

Providers (24)

Rostelecom is the national long-distance and international provider
Each region has a smaller local telephone service provider
Major mobile providers are Beeline and Mobile Telesystems (MTS)

Telephony

218 telephone lines per 1000 people (25)

five year waiting list

Local calls from landlines and mobile phones are relatively low cost in comparison to GDP

Internet

Internet hosts per 10,000 inhabitants: 22.22 (25)
Internet users per host: 9.49 (25)
Average monthly cost for 20 hours of internet access: US$14.83 (25)

Broadband

Only 2% of the populations has broadband access (25)
E-Russia program promises all cities in Russia with populations over 30,000 people be connected as part of the country’s “fiber optic backbone”

Mobile

Cell phone usage per 1000: 140 (27)
At the end of 2003, Russia had more than 35 million mobile phone users (19)
In Moscow and St Petersburg, cell-phone use is nearly as prevalent as in New York City
In 2002, Russians bought 1 million wireless phones per month
Mobile-communications hardware is among the most in demand in Russia according to IDC
Russia will need over $33B in investment over the next 10 years to satisfy demand in the market (19)

Satellite

Satellite communications is in relative high demand because of the country’s expansive territory and the poor conditions of it landline networks. (22)
Forecasts indicate that by 2010 capacity demand will require as many as 380 transponders (22)