The Russian telecom market is big and highly consolidated
The telecommunications market in Russia reached 1.62 trillion rubles (26,84 billion CHF) in 2017 … and there are 5 companies that share nearly 60-70% of each segment.
Yet there are a lot of local operators.
There are more than 10,000 operators officially registered in all regions of Russia, which have a 30% market share.
There is no leading provider of fiber optic visualization and management solutions
The largest companies use an average of 150-300 OSS/BSS solutions, which increases their costs for optimization and tuning the interactions of these decisions. Professionals refers to this situation as a “zoo” because of the numerous disorganized solutions. As a result, companies are looking for a single solution with all the functions required to run their business.
Small companies need solutions to control and visualize their fiber-optic networks
In this respect, Russian companies are 5 to 10 years late compared to the European ones and apply either simplified system for creating diagrams and databases (like Microsoft Visio), or use paper to represent schemes.
Russia’s largest owners of fiber-optic systems are
· Beeline (VEON ex VimpelCom)
· Tele2 (Rostelecom)
The four biggest operators are the main consumers of OSS/BSS services
The BSS segment covers approximately 70% of the OSS/BSS services market, while the segment OSS represents 30%. The main telecommunication companies, also called “big four” (MTS, MegaFon, Beeline and Tele2), share 80% of the market, while the remaining 20% is divided between small and medium telecommunications operators.
The largest market in Russia is the Moscow region
The largest network of fiber optic is in Moscow, where the major companies’ headquarters are located, which makes it the best place to introduce and present OSS/BSS solutions. That will be the primary location for the 5G network launch that the “big four” are planning for 2019. The Moscow administration ICT development budget increased by 42,2% in 2017 to reach 45,7 billion rubles (764 million CHF).
Protectionism against imported equipment
Tougher domestic rules for the use of solutions in state institutions and companies with state participation can be a major obstacle for entry of foreign solutions on the Russian market.
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