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2007 Europe - Telecoms, Mobile and Broadband in Russia, Belarus, Moldova and Ukraine


Attention: There is an updated edition available for this report.

This report covers Russia and the neighbouring former Soviet countries Belarus, Moldova and Ukraine. Trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments. Subjects include:

  • Market and industry analyses, trends and developments
  • Facts, figures and statistics
  • Industry and regulatory issues
  • Research, Marketing, Benchmarking
  • Major Players, Revenues, Subscribers, Prepaid
  • VoIP, IPTV, VoD, digital TV and DTTV


BuddeComm’s latest UK and Ireland Annual Publication, ‘2007 Telecoms, Mobile and Broadband in the UK and Ireland’, profiles two countries with close links between regulators and telcos. Ireland’s small telecom market contrasts with that of the UK, which is among Europe’s largest and most vibrant. Ireland has been slow to develop broadband and digital TV, while the UK has a highly competitive broadband sector and the largest digital TV market in the EU.

In the UK the markets for triple play continued to mature during 2007, while digital TV take-up reached 85% by mid-year. The country began switching off analogue transmissions in October 2007 in a phased program to 2012. The consolidation of the cable market, with Virgin Media the dominant player, has helped rationalise network upgrades while the operator has extended its footprint through wholesale DSL access.

Ireland’s incumbent, eircom, in October 2007 set in train its structural separation, aiming to separate its network infrastructure from its retail business. The model differs from that of BT’s Openreach but if successful it may dramatically boost market competition and provide the stimulus for widespread broadband take-up, encourage investment in network upgrades and promote high-bandwidth triple play services in coming years.

This report presents an overview of telecoms liberalisation and privatisation in the UK and Ireland, together with product offerings for both the mobile and broadband sectors. It provides the latest key statistics for operators in all sectors, highlighting market and technological developments and detailing the emergence of media convergence and triple and quad-play in these two important markets. The report also covers the latest regulatory developments, together with an analysis of NGNs and the strategies of the main players in coming years.

Key Highlights

2007 saw further development in quad-play offers, led by Virgin Media and BSkyB through its Sky Broadband, Sky Talk and Sky Plus brands. In October 2007 BSkyB launched a pared down version of its pay TV, broadband and telephone services under a new brand, Picnic. The company’s equipment has been installed in BT exchanges covering 70% of UK homes.
To address the UK’s relatively low broadband download speeds the regulator in October 2007 promoted the concept of a national fibre network costing up to £15 billion, with the potential for regulatory intervention to safeguard operator investment sin the sector.
eircom sought government approval to split company’s wholesale and retail divisions into two separate operations, with different owners. The structural separation would go some way to address the country’s poor broadband infrastructure and take-up, though the company may expect its fibre network to be closed to competitors for up to five years as a part of any deal.
The UK’s digital and pay TV markets is among the most developed in Europe, with a range of services reached by about 85% of the population.
The Mobile TV market was strengthened in 2007 with deals between operators and content providers - H3 with BSkyB, Orange and Vodafone with the BBC. H3 in April 2007 launched free advertising-funded mobile TV, while an advertising-funded MVNO, Blyk, may prove to be one of the more successful business models in the market.
Broadband subscribers and penetration in the UK and Ireland - 2004 - 2007

UK Ireland
Year Subscribers Penetration Subscribers Penetration
2004 6,129,300 10% 135,000 3%
2005 9,840,500 17% 270,700 6%
2006 13,111,600 24% 517,300 12%
2007 (e) 17,250,000 28% 685,000 17%

(Source: BuddeComm based on industry sources)

For those needing high level strategic information and objective analysis on this region, this 170+ page report is essential reading and gives further information on:

eircom’s structural separation, its impact on broadband take-up, and the regulatory measures needed to guarantee equality of access for competitors;
Ireland’s mobile market following eircom’s award of a 3G licence;
The growing demand for IPTV, VoD and other triple play services and its effect in stimulating both DSL and cable network upgrades;
The changing face of converged media with widespread triple play services becoming a standard feature in homes.

1. RUSSIA
1.1 Key statistics
1.2 Telecommunications market
1.2.1 Overview of Russia’s telecom market
1.2.2 Statistics
1.3 Regulatory environment
1.3.1 History
1.3.2 Regulatory authority
1.3.3 Telecom sector liberalisation in Russia
1.4 Fixed network operators in Russia
1.4.1 Overview of operators
1.4.2 Svyazinvest
1.4.3 Golden Telecom
1.4.4 Multiregional Transit Telecom
1.4.5 TransTeleCom
1.4.6 PeterStar
1.4.7 Altimo
1.4.8 Sistema
1.4.9 Comstar-UTS / MGTS
1.4.10 Synterra telecom
1.5 Telecommunications infrastructure
1.5.1 Introduction
1.5.2 Local/regional
1.5.3 National
1.5.4 International infrastructure
1.5.5 Infrastructure developments
1.5.6 Telecoms and IT
1.6 Internet market
1.6.1 Overview
1.6.2 Internet access locations
1.6.3 ISP market
1.7 Broadband market
1.7.1 Overview
1.7.2 Asymmetrical Digital Subscriber Line (ADSL)
1.7.3 Other DSL developments - xDSL, HDSL, SDSL
1.7.4 Cable modems
1.7.5 Fibre-to-the-Home (FttH) networks
1.7.6 Broadband Powerline (BPL)
1.7.7 Wireless broadband
1.8 Convergence
1.8.1 Introduction
1.8.2 Voice over Internet Protocol (VoIP)
1.8.3 Triple play
1.8.4 Overview of broadcasting market
1.8.5 Digital TV
1.9 Mobile communications
1.9.1 Overview and analysis of Russia’s mobile market
1.9.2 Regulatory issues
1.9.3 Mobile technologies
1.9.4 Major mobile operators
1.9.5 Mobile Virtual Network Operators (MVNOs)
1.9.6 Mobile voice services
1.9.7 Mobile data services
1.9.8 Mobile content and applications
2. BELARUS
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of Belarus’ telecom market
2.3 Regulatory environment
2.3.1 History
2.3.2 Regulatory authority
2.3.3 Telecom sector liberalisation in Belarus
2.4 Fixed network operator in Belarus
2.4.1 Beltelecom
2.5 Telecommunications infrastructure
2.5.1 National telecom network
2.5.2 International infrastructure
2.5.3 Infrastructure developments
2.5.4 Telecoms & IT
2.6 Internet market
2.6.1 Overview
2.6.2 ISP market
2.6.3 Internet access locations
2.7 Broadband market
2.7.1 Overview
2.8 Convergence
2.8.1 Overview of broadcasting market
2.8.2 Regulatory issues
2.8.3 Digital TV
2.9 Mobile communications
2.9.1 Overview of Belarus’ mobile market
2.9.2 Regulatory issues
2.9.3 Mobile technologies
2.9.4 Major mobile operators
2.9.5 Mobile data services
2.9.6 Mobile content and applications
3. MOLDOVA
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview of Moldova’s telecom market
3.3 Regulatory environment
3.3.1 Background
3.3.2 Regulatory authority
3.3.3 Telecom sector liberalisation in Moldova
3.4 Fixed network operators in Moldova
3.4.1 Overview of operators
3.4.2 Moldtelecom
3.4.3 InterDnestrCom
3.5 Fixed voice market
3.5.1 VoIP services
3.6 Telecommunications infrastructure
3.6.1 National telecom network
3.6.2 International infrastructure
3.7 Internet market
3.7.1 Overview
3.7.2 ISP market
3.8 Broadband market
3.9 Convergence
3.9.1 Overview of broadcasting market
3.9.2 Digital TV
3.10 Mobile communications
3.10.1 Overview of Moldova’s mobile market
3.10.2 Regulatory issues
3.10.3 Mobile technologies
3.10.4 Major mobile operators
3.10.5 Mobile voice services
3.10.6 Mobile data services
3.10.7 Mobile content and applications
4. UKRAINE
4.1 Key statistics
4.2 Telecommunications market
4.2.1 Overview of Ukraine’s telecom market
4.3 Regulatory environment
4.3.1 History
4.3.2 Regulatory authority
4.3.3 Telecom sector liberalisation in Ukraine
4.4 Fixed network operators in Ukraine
4.4.1 Overview of operators
4.4.2 Ukrtelecom
4.4.3 Datagroup
4.4.4 Eurotranstelecom
4.4.5 Golden Telecom Inc
4.4.6 Farlep
4.4.7 Wireless Local Loop (WLL) operators
4.5 Telecommunications infrastructure
4.5.1 National telecom network
4.5.2 International infrastructure
4.5.3 Telecoms & IT
4.6 Internet market
4.6.1 Overview
4.6.2 ISP market
4.7 Broadband market
4.7.1 Overview
4.7.2 Asymmetric Digital Subscriber Line (ADSL)
4.7.3 Cable modems
4.7.4 Fibre-to-the-Home (FttH)
4.7.5 Wireless broadband
4.8 Convergence
4.8.1 Introduction
4.8.2 Overview of broadcasting market
4.8.3 Digital TV
4.9 Mobile communications
4.9.1 Overview of Ukraine’s mobile market
4.9.2 Regulatory issues
4.9.3 Mobile technologies
4.9.4 Major mobile operators
4.9.5 Mobile voice services
4.9.6 Mobile data services
4.9.7 Mobile content and applications
5. GLOSSARY OF ABBREVIATIONS


List of Tables


Table 1 - Country statistics Russia - 2007
Table 2 - Telephone network statistics - 2006
Table 3 - Internet user statistics - 2006
Table 4 - Broadband statistics - 2006
Table 5 - Mobile statistics - July 2007
Table 6 - National telecommunications authority
Table 7 - Telecoms market revenue and annual growth - 2003 - 2006
Table 8 - Telecommunications revenue breakdown by service - 2006
Table 9 - ARPL and ARPU - 2001 - 2006
Table 10 - Fixed-line telecommunications revenue breakdown by service - 2006
Table 11 - Fixed-line telecommunications revenue breakdown by region - 2006
Table 12 - Market share of Moscow fixed-line market - June 2006
Table 13 - Svyazinvest revenue breakdown by sector - 2005 - 2006
Table 14 - Svyazinvest operating data: lines, revenue per line and yearly increase - 2006
Table 15 - Svyazinvest regional telecom operators financial data - January - September 2006
Table 16 - Dalsvyaz communications revenue structure by service - 2005 - 2006
Table 17 - Sibirtelecom communications revenue structure - 2006
Table 18 - Uralsvyazinform communications revenue structure and annual change - 2005 - 2006
Table 19 - VolgaTelecom communications revenue by service type and annual change - 2006
Table 20 - Rostelecom communications revenue by service type and annual change - 2006
Table 21 - Golden Telecom revenue, EBITDA, income and annual change - 2005 - 2006
Table 22 - Fixed lines in service and teledensity - 1995 - 2006
Table 23 - Svyazinvest operators - Teledensity levels per operator - 2005 - 2006
Table 24 - Svyazinvest regional operators - Fixed lines installed and in use and annual change - 2005 - 2006
Table 25 - Svyazinvest regional operators - Digitalisation of rural and urban lines - 2005 - 2006
Table 26 - RTComm PoPs and MPLS-enabled POPs - 2001 - 2006
Table 27 - Significant Russian IT companies: revenue and employees - 2005
Table 28 - Registered number of domains - 2004 - 2007
Table 29 - Internet digital content market by service - 2006
Table 30 - Internet users and penetration - 1998 - 2010
Table 31 - Percentage of population using the Internet by location - 2001 - 2007
Table 32 - PC penetration - 2001 - 2006
Table 33 - PC and notebook sales by brand and market share - 2005 - 2006
Table 34 - Notebook sales by brand and market share - 2005 - 2006
Table 35 - Svyazinvest Internet revenue by service and year-on-year increase - 2006
Table 36 - Corporate VAS market revenue - 2003 - 2005
Table 37 - Market share of Corporate VAS providers - Q3 2006
Table 38 - RTComm revenue and CAPEX and annual change - 2001 - 2006
Table 39 - RTComm IP traffic growth - 2001 - 2006
Table 40 - Comstar-Direct Dial-up, broadband and IPTV subscribers - 2003 - 2006
Table 41 - Broadband subscribers and penetration - 2002 - 2006
Table 42 - Top 10 broadband ISPs subscribers - 2006
Table 43 - Market share of Moscow fixed-line broadband market - June 2006
Table 44 - Broadband subscribers of Svyazinvest operators and ISP ranking - 2006
Table 45 - Total handsets sold in volume and annual change - 2004 - 2006
Table 46 - Mobile operators, technology, subscribers and annual growth - July 2007
Table 47 - Mobile subscribers and penetration - 1995 - 2007
Table 48 - Total revenue, voice and non-voice ARPU - 2002 - 2005
Table 49 - Market share of revenue: MTS, MegaFon and VimpelCom - 2004 - 2006
Table 50 - Market share of EBITDA: MTS, MegaFon and VimpelCom - 2004 - 2006
Table 51 - Subscriber market share by mobile network operator - 2006
Table 52 - MTS revenue, OIBDA, income, margins and annual change - 2005 - 2006
Table 53 - MTS operation data - ARPU, Subscriber acquisition cost, MOU and churn - 2001 - 2006
Table 54 - MTS subscribers by country - 2007
Table 55 - VimpelCom ARPU, MOU and churn - 2001 - 2006
Table 56 - VimpelCom net operating revenue, OIBDA, net income and OIBDA margin - 2005 - 2006
Table 57 - MegaFon revenue, OIBDA, income, margins and annual change - 2005 - 2006
Table 58 - MegaFon revenue, EBITDA, net income and CAPEX - 2002 - 2006
Table 59 - MegaFon ARPU, MOU and churn - 2002 - 2006
Table 60 - Yeniseytelecom revenue, operating expenses, EBITDA, income and annual change - 2005 - 2006
Table 61 - Baikalvestkom revenue, operating expenses, EBITDA, income and annual change - 2005 - 2006
Table 62 - MTS and VimpelCom prepaid subscribers - 2004 - 2006
Table 63 - Mobile content market by service - 2006
Table 64 - Country statistics Belarus - 2007
Table 65 - Telephone network statistics - 2006
Table 66 - Internet user statistics - 2006
Table 67 - Internet subscriber statistics - 2006
Table 68 - Broadband subscriber statistics - 2006
Table 69 - Mobile statistics - March 2007
Table 70 - National telecommunications authority
Table 71 - Fixed lines in service and teledensity - 1995 - 2006
Table 72 - Ecommerce sites by services provided - October 2006
Table 73 - Internet users and penetration - 1995 - 2006
Table 74 - Internet subscribers and penetration - 2000 - 2006
Table 75 - Registered top level domains (TLDs) as at April 2007
Table 76 - Broadband subscribers and penetration - 2003 - 2006
Table 77 - Mobile operators, technology, subscribers and annual change - July 2007
Table 78 - Mobile subscribers and penetration - 1995 - 2007
Table 79 - Country statistics Moldova - 2007
Table 80 - Telephone network statistics - 2006
Table 81 - Internet user statistics - 2006
Table 82 - Internet subscriber statistics - 2006
Table 83 - Broadband statistics - 2006
Table 84 - Mobile statistics - March 2007
Table 85 - National telecommunications authority
Table 86 - Total telecom industry revenue by service type - 2005 - 2006
Table 87 - Total investment by service type - 2004 - 2006
Table 88 - Total valid licences - 2006
Table 89 - Market share of operators by revenue - 2005 - 2006
Table 90 - Market share of operators by subscribers - 2005 - 2006
Table 91 - Fixed lines in service and teledensity - 1995 - 2006
Table 92 - Rural and urban digitalisation rates - 2002 - 2005
Table 93 - Internet users and penetration - 1995 - 2006
Table 94 - Internet subscribers and penetration - 2000 - 2006
Table 95- Registered top level domains (TLDs) - April 2007
Table 96 - Total ISP and data market revenue by service provider - 2006
Table 97 - Broadband subscribers and penetration - 2001 - 2006
Table 98 - Broadband subscribers by access type - 2005 - 2006
Table 99 - Broadcasting sector revenue and investment - 2004 - 2006
Table 100 - Mobile operators, technology, subscribers and annual growth - March 2007
Table 101 - Mobile subscribers and penetration - 1998 - 2007
Table 102 - Originating and terminating mobile traffic - 2003 - 2006
Table 103 - Percentage of prepaid and postpaid subscribers - 2000 - 2006
Table 104 - Total SMS and MMS messages sent - 2002 - 2006
Table 105 - Total SMS messages sent by operator - 2003 - 2006
Table 106 - WAP subscribers by operator - March 2006
Table 107 - Country statistics Ukraine - 2007
Table 108 - Telephone network statistics - 2006
Table 109 - Internet user statistics - 2006
Table 110 - Broadband statistics - 2006
Table 111 - Mobile statistics - March 2007
Table 112 - National telecommunications authority
Table 113 - Fixed lines in service - 1995 - 2006
Table 114 - Registered top level domains (TLDs) - April 2007
Table 115 - Internet users and penetration - 1995 - 2006
Table 116 - PC penetration - 2000 - 2006
Table 117 - Prime time audience share by broadcaster - 2004 - 2007
Table 118 - All day audience share by broadcaster - 2004 - 2007
Table 119 - Volia subscribers by service - June 2007
Table 120 - Mobile operators, technology, subscribers and annual change - March 2007
Table 121 - Mobile subscribers and penetration - 1995 - 2007
Table 122 - Market share by mobile network operator - 2006
Table 123 - UMC ARPU, MOU and churn - 2003 - 2006
Table 124 - Kievstar prepaid, postpaid and blended ARPU - 2004 - 2006
Table 125 - Kievstar monthly minutes of use - 2004 - 2006
Table 126 - URS ARPU, MOU and churn - 2005 - 2006
Table 127 - Kievstar prepaid subscribers - 2004 - 2006
Table 128 - Average monthly SMS messages sent - 2005 - 2006

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