Boston, MA -- (SBWIRE) -- 08/09/2013 -- Even after the sale of Tele2, we maintain our view that 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 intense competition in converged services. There are major international operators in mobile and fixed line, including MTS, VimpelCom, MegaFon and Rostelecom , 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.

Key Data:

- Growth of total mobile subscriptions has slowed substantially as the market has become saturated, with penetration of 164.5% in Q113. Y-o-y growth declined to 2% to Q113, and there was a net loss of 90,000 subscriptions in Q113.
- Wireless data subscriptions have continued to expand rapidly, with MegaFon reporting a total of 149,000 LTE subscriptions at the end of Q113, adding a new layer to the already well-developed market for mobile data services.
- Smartphones have driven the success of the wider mobile broadband market, with MTS data showing smartphone penetration in its registered base increased to 22.9% at the end of 2012, up from 14% at the end of 2011.

View Full Report Details and Table of Contents

Key Trends And Developments

In March 2013 Tele2 sold its operations in Russia to the country's second largest bank, VTB Group, for around US$3.6bn. Speculation now lies in VTB's intentions behind acquiring Tele2. Russia's Alfa Group, which controls VimpelCom, is understood to be ready to offer US$4bn for Tele2. The Swedish company has said VTB offers a 'straightforward deal that was easy to close' and neither party commented on the reported bid from Alfa Group. VTB, for its part, said it is a 'financial investor' and emphasised it wants to 'increase the value of the company'. In April 2013 VTB stated it intended to sell 50% of Tele2 to a telecoms operator within a year, with speculation that Rostelecom is the most likely investor. It was not clear at the time of writing what impact there will be on Tele2's strategy, but BMI believes that a withdrawal from disruptive low-priced service provision would be detrimental to the market.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Fixed Networks research reports at Fast Market Research

You may also be interested in these related reports:

- Colombia Telecommunications Report Q3 2013
- Sri Lanka Telecommunications Report Q3 2013
- China Telecommunications Report Q3 2013
- Bangladesh Telecommunications Report Q3 2013
- Venezuela Telecommunications Report Q3 2013
- Pakistan Telecommunications Report Q3 2013
- Norway Telecommunications Report Q3 2013
- Peru Telecommunications Report Q3 2013
- Czech Republic Telecommunications Report Q3 2013
- West & Central Africa Telecommunications Report Q3 2013