New Fixed Networks market report from Business Monitor International: "Russia Telecommunications Report Q2 2013"

Boston, MA -- (SBWire) -- 06/24/2013 --BMI View: The Russian telecoms market is one of the most dynamic in Central and Eastern Europe, with rapid development of 4G LTE services, mobile VAS such as mobile banking, expansion of high capacity wireline services and converged services. There are major international operators in mobile and fixed line, including MTS, VimpelCom, MegaFon, Rostelecom and Tele2, as well as competition in the wireline segment from ER-Telecom and, most recently, TTK. Competition between these operators has helped to drive innovation, expand the reach of telecoms services and reduce prices.

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Key Data:

- MegaFon reported a total of 130,000 LTE subscriptions at the end of 2012, adding a new layer to the already well developed market for mobile data services.
- In contrast, data from three of the five largest mobile operators show that growth of traditional mobile subscriptions has slowed in 2012, a result of inactive subscription discounting and the diminished subscription addition opportunities in a mature market.

Key Trends And Developments

In 2012 mobile operators began the rollout of their LTE networks and have begun to launch commercial services. MegaFon has taken an early lead by offering services over Yota's network (which it controls following the merger in 2012). MegaFon reported 130,000 subscriptions and 25% population coverage at the end of 2012. It is targeting 1mn subscriptions by the end of 2013 and pans to build an independent LTE network in eight regions to compliment Yota's network. Other operators are also investing heavily, for instance Vimpelcom is planning to launch LTE in six cities, including Moscow, during 2013, while MTS had already constructed 100 LTE base stations in the capital by YE12.

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