TELECOMMUNICATIONS INDUSTRY: FACTS AND FIGURES
2014
ABOUT THE RUSSIAN DIRECT INVESTMENT FUND
The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.
RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.
RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.
I RUSSIA IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY RUSSIA IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY
1.1 RUSSIA’S RANKING IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY 2013
IN EUROPE GLOBALLY BY PAY-TV BY CELLULAR SERVICE № SUBSCRIBER BASE № SATURATION 9% increase1 in subscribers in 2013 166% saturation1 level by number of SIM 55% level of Pay-TV saturation cards 110% by active subscribers
IN EUROPE IN EUROPE BY NUMBER OF BROADBAND INTERNET USERS № GLOBALLY № 1 BY NUMBER OF Over 271 mln subscribers in 2013. INTERNET-VIDEO 49% saturation level (60-80% in big cities № USER BASE and over 50% in cities with populations under 3 500,000) after USA and Japan
Sources: ITU: ITC Facts and Figures, 2013; Ericsson; Comscore
6 WWW.INVESTINRUSSIA.COM 1.2 CELLULAR SERVICE IN RUSSIA AND GLOBALLY 2009-2013, number of contracts per 100 people
Russia 160.1 165.5 142.1 145.3 152.9
Europe 116.8 115.0 117.9 119.6 122.8
China 55.3 63.2 72.0 80.8 88.7
USA 88.6 91.3 94.4 96.0 95.5
2009 2010 2011 2012 2013
Source: ITU
WWW.RDIF.RU 7 RUSSIA IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY
1.3 BROADBAND ACCESS (BBA) SATURATION LEVEL IN RUSSIA AND GLOBALLY 2013, %
In Russia Globally
49% 39%
Source: ITU
8 WWW.INVESTINRUSSIA.COM 1.4 FIXED BROADBAND INTERNET SUBSCRIBERS IN RUSSIA AND GLOBALLY 2009-2013, per 100 households
8.98 14.46 Russia 10.93 12.14 16.62
Europe 22.1 23.6 24.8 25.7 26.6
China 7.69 9.29 11.4 12.72 13.6
USA 25.3 26.5 27.4 28.4 28.5
2009 2010 2011 2012 2013
Source: ITU
WWW.RDIF.RU 9 RUSSIA IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY
1.5 RUSSIAN INTERNET USER BASE IS RANKED FIRST IN EUROPE AND SIXTH IN THE WORLD as of February 2014, mln unique visitors
Russia
Germany USA China
66.8 194.7 52.6
354.6 Japan 73 80.1
Brazil 68
India
Source: Comscore, Digital future in focus, 2014
10 WWW.INVESTINRUSSIA.COM 1.6 INTERNET USERS IN RUSSIA AND GLOBALLY 2009-2013, % of the population
Russia 29 43 49 62 63
Europe 63 66 69 71 73
China 29 34 38 42 46
USA 71 72 70 79 84
2009 2010 2011 2012 2013
Source: ITU
WWW.RDIF.RU 11
II RUSSIAN TELECOMMUNICATIONS INDUSTRY: CURRENT ISSUES AND TRENDS RUSSIAN TELECOMMUNICATIONS INDUSTRY: CURRENT ISSUES AND TRENDS
2.1 RUSSIAN TELECOMMUNICATIONS MARKET STRUCTURE 2013, by segment, %
Landline 11%
BBA 10% Cellular service 58%
Pay-TV 3%
Postal service 8%
Other 10%
Source: CNews Analytics, 2013
14 WWW.INVESTINRUSSIA.COM 2.2 RUSSIAN TELECOMMUNICATIONS MARKET 2009-2013, RUB bln
Russian telecommunications market Revenue growth rates of the 2009-2013, RUB bln telecommunications market in Russia 2009-2013 and forecast up to 2018, by segment, % 1,635
Market, 4 total 1,543 7
Pay-TV CAGR 6.96%1,441 5 17 1,349 Broadband 2 1,249 access 12
Cellular 6 service 9
2009 2010 2011 2012 2013 CAGR, 2014-2018, est СAGR, 2009-2013
Source: CNews Analytics, 2013
WWW.RDIF.RU 15
III TELECOMMUNICATIONS INDUSTRY IN RUSSIA: LEADING COMPANIES TELECOMMUNICATIONS INDUSTRY IN RUSSIA: LEADING COMPANIES
3.1 A HIGH LEVEL OF CONSOLIDATION IN THE RUSSIAN TELECOMMUNICATIONS MARKET
80% of the Russian telecommunications market is controlled by “the big four” (Rostelecom, MTS, VimpelCom and Megafon), which have presence in all key industry segments.
“Big Four” share in the Russian telecommunications industry 2013, by revenue, % 78 90
Landline market Long-distance and international calls market
89 58 38
Cellular market Broadband market Pay-TV market
Source: CNews Analytics, 2013
18 WWW.INVESTINRUSSIA.COM 3.2 TOP-10 TELECOMMUNICATIONS COMPANIES IN RUSSIA 2011-2013, by revenue, RUB bln
Company 2013 2012 2011 2013/ 2011, %
1 398.4 378.2 311.9 127.7 MTS (Cellular service) 2 325.7 332.4 214.6 151.7 Rostelecom (Cellular service) 3 297.2 272.3 242.6 122.5 Megafon (Cellular service) 4 289.4 280.3 266 108.7 VimpelCom (Cellular service) 5 65.3 59.5 - 109.7* Tele2 (Cellular service) 6 27.4 27.1 24.8 110.4 TransTeleCom (Landline service) 7 19 13.9 9.7 195.8 ER-Telecom (Internet, cable TV) 8 12.9 11.7 10.8 119.4 Multiregional Transit Telecom (Landline service) 9 12.6 11.2 10.3 122.3 Akado (Internet, cable TV) 10 9.4 9.1 - 103.2* NTV-Plus (Cable TV)
*2013/2012
Source: CNews Analytics, 2013
WWW.RDIF.RU 19 TELECOMMUNICATIONS INDUSTRY IN RUSSIA: LEADING COMPANIES
3.3 LARGEST SUPPLIERS OF INFORMATION TECHNOLOGY FOR TELECOM OPERATORS 2011-2013, by industry projects revenue, RUB bln
Company 2013 2012 2011 2013/2011, %
1 31.2 13.7 156.9 NVision Group 21.5 2 18.1 17.7 100.1 Technoserv 17.7 3 8.5 5.2 146.1 ITG 7.6 4 9.9 - 74.7* Compulink 7.4 5 8.6 6.5 93.8 RRC 6.1 6 4.7 4.1 114.6 Asteros 4.7 7 4.7 2.1 223.8 Satel 4.7 8 3.6 3.0 106.6 Peter-Service 3.2
*2013/2012 Source: CNews Analytics, 2013
20 WWW.INVESTINRUSSIA.COM 3.4 GROWTH LEADERS IN THE TELECOMMUNICATIONS SECTOR 2013, by revenue, RUB bln
Company 2013 2012 2013/2012, %
1 1.6 150.5 MUS Energetiki (EESTelecom)(Moscow) 2.4 2 0.5 146.0 Mango Telecom (Moscow) 0.7 3 13.9 136.8 ER-Telecom (Perm Krai) 19 4 2.4 135 Gazprom Space Systems (Moscow region) 3.3 5 1.1 131.9 Obit (St. Petersburg) 1.5 6 6.3 128.5 Tricolor TV (St. Petersburg) 8.1 7 0.9 118.6 Telecomnefteproduct (Moscow) 1.1 8 2.9 115.2 Enforta (Moscow) 3.4
Source: CNews Analytics, 2013
WWW.RDIF.RU 21 TELECOMMUNICATIONS INDUSTRY IN RUSSIA: LEADING COMPANIES
3.5 RUSSIAN BROADBAND MARKET: TOP 5 OPERATORS BY NUMBER OF BBA SUBSCRIBERS 2013, thousand subscribers
Company 2013 2012 2013/2012, Компания 2013 г. %
1 8,543 115 Rostelecom 9,824 2 2,449 112 ER-Telecom 2,732 3 2,376 97 VimpelCom 2,298 4 2,205 103 MTS 2,264 5 921 131 TTK 1,209
Source: J’son & Partners Consulting
22 WWW.INVESTINRUSSIA.COM 3.6 TOP 5 COMPANIES BY PAY-TV SUBSCRIBER BASE GROWTH 2011-2013, mln households
Company 2013 2012 2013/2012, Компания %
1 8.9 Tricolor TV 10.1 113.4 2 5.25 Rostelecom 5.23 99.6 3 2.35 ER-Telecom 2.49 105.9 4 2.85 MTS 2.46 86.3 5 1.05 TTK 1.75 166.6
Source: J’son & Partners Consulting
WWW.RDIF.RU 23 NOTES
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