Research and Markets has announced the addition of the Russia Telecom Intelligence Report - Russia: Data Connectivity Boom to Spur Market Growth report to their offering. Broadband services in Russia will help drive Internet revenue to $6.5 billion in 2015, becoming the fastest-growing revenue source in the fixed segment, according to this new report.
The majority of data revenue growth will come from mobile broadband, and Pyramid estimates that connectivity revenue will increase by 183 percent over the forecast period, driven by the planned 3G and 4G network rollouts, as well as growing computing devices proliferation.”
Russia: Data Connectivity Boom to Spur Market Growth offers a precise profile of the country's telecommunications, media and technology sectors based on proprietary data from Pyramid's research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services and monitors the introduction and spread of new technologies.
Total fixed voice is on the decline from 2010-2015, meanwhile, Internetimilar to its Arab neighbors, Algeria expects to see many changes in 2011. However, the country revenue will grow steadily. Dominated by broadband services, Internet growth will account for revenues rising to US$6.5 billion in 2015. "This growth will be driven by the increasing affordability and convenience of multiplay bundles," says Sylwia Boguszewska, Analyst at Pyramid. "In order to be capable of providing bundled offerings, telcos are adding IPTV services to their services portfolio alongside network expansion," she adds.
Pyramid projects that fixed and mobile broadband will represent a cumulative revenue opportunity of $42.3 billion by 2015. "In Russia, mobile broadband has seen epic growth, as exemplified by Yota's recently released data showing that its total network traffic for 2010 exceeded 100 petabytes, or nine times its 2009 3G networks level," Boguszewska indicates. "In addition, mobile broadband has emerged as a substitute for fixed access, especially in rural areas. MegaFon, for example, reported that more than 40 percent of the data card modems it has sold will be used for access in the home," she adds.
"The majority of data revenue growth will come from mobile broadband, and Pyramid estimates that connectivity revenue will increase by 183 percent over the forecast period, driven by the planned 3G and 4G network rollouts, as well as growing computing devices proliferation," she says. "Operators have also started to look to increase subscriber spending through Internet-related services, such as Internet TV/music/games/storage," Boguszewska adds.
The author estimates that the Russian telecom market generated Rb1.149bn (US$37.8bn) in service revenue in 2010, a 4.9% year-on-year increase in local currency terms. We forecast that the market will grow at a local currency-denominated CAGR of 4% in the 2010-2015 period, reaching $47.2bn (Rb1.398trn) in 2015, representing a cumulative service revenue opportunity of $256bn (Rb7.716trn) over the same time. While the Russian market was one of the very few that did not show an overall revenue decline in the face of the global downturn, due to strong growth in broadband revenue, other segments of the total revenue pie did not fare as well. Fixed circuit-switched voice revenue suffered a decline in 2009, and we expect this trend to continue in the 2010-2015 period, with a local currency CAGR of -1.4%. For the first time in 2009, the number of fixed access lines declined, with a continuation of this trend in 2010, leading us to believe that this was not a temporary blip caused by the economic crisis but one caused by a more pronounced fixed to mobile substitution.
The report forecasts that investments in next-generation networks, namely FTTB and LTE, spurred by the operators' desire to compete with the incumbent on the fixed side, will result in a higher proliferation of total broadband (BB) access, with mobile BB uptake growing exponentially in the past two years following the 3G licensing awards. We expect Russia to become a playing field for fixed-mobile convergence, due to the Russian Big Three mobile operators' (Beeline, MegaFon and MTS) acquisitions and integration of fixed assets.
For more information go to: http://www.researchandmarkets.com/research/0a269a/russia_telecom_int
