Mobile phone industry in Russia

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Mobile phone industry in Russia is a trade industry of cell phone devices and Mobile network operators in Russia. Since the collapse of the Soviet Union in the 1991 it had seen a great expansion over the last decades becoming one of the largest in the world. In terms of number of smartphone users, Russia is the 4th biggest smartphone market in the world sitting behind only China, India, and USA. [1]

Contents

Mobile phone service providers

The country's telecom regulator is Roskomnadzor (RKN). There are four nationwide mobile phone service providers who possess 2G and 3G licenses in every region of Russia (so called Big-4), with additional regional operators. The mobile phone service provider licensing in Russia is under the control of Rospechat, the Federal Agency on Press and Mass Communications of Russia.

No.OperatorCoverage across 89 federal subjects (as of Feb 2025)Technology (as of Feb 2025)Subscribers
(in millions)
OwnershipEstablished Mobile country code
Big four mobile network operators
1 MTS countrywide (83 federal subjects) (except Crimea, Sevastopol, Luhansk, Donetsk, Zaporozhye, Kherson) GSM-900/1800 MHz (GPRS, EDGE)
900/2100 MHz UMTS, HSDPA, HSUPA, HSPA+
800/900/1800/2100/2600 MHz LTE, VoLTE
1800/2100/2600/4700 MHz 5G NR
81.9 (Q3 2024) [2] PJSC Sistema (42.09%),
PJSC MTS (1.93%),
free float (50.03%) [3]
199325001
2 MegaFon countrywide (83 federal subjects) (except Crimea, Sevastopol, Luhansk, Donetsk, Zaporozhye, Kherson) GSM-900/1800 MHz (GPRS, EDGE)
900/2100 MHz UMTS, HSDPA, HSUPA, HSPA+
800/1800/2500/2600 MHz LTE, LTE-A, VoLTE
1800/2100/2600 MHz 5G NR
77.26 (Q2 2024) [4] OOO USM Holdings (50%),
OOO AF Telecom Holdings (50%) [5]
199325002
3 t2 60 federal subjects GSM-900/1800 MHz (GPRS, EDGE)
2100 MHz UMTS, HSDPA, HSUPA, HSPA+
450/800/900/1800/2100/2300/2600 MHz LTE
48.0 (Q3 2024) [6] PJSC Rostelecom 200325020
4 Beeline 38 federal subjects GSM-900/1800 MHz (GPRS, EDGE)
900/2100 MHz UMTS, HSDPA, HSUPA, HSPA+
800/1800/2100/2600 MHz LTE, LTE-A, VoLTE
44.1 (Q3 2023) [7] PJSC VimpelCom 199325099
Regional mobile network operators
5 MOTIV Sverdlovsk, Kurgan, Khanty-Mansi, Yamalo-Nenets GSM-1800 MHz
1800/2500 MHz LTE, VoLTE
2.5 (2024) [8] OOO EKATERINBURG-2000199625035
6 Tattelecom Tatarstan GSM-1800 MHz
1800 MHz LTE
2.0 (2024) [9] PJSC Tattelecom199825027
7 Phoenix Donetsk GSM-900/1800 MHz
2100 MHz UMTS
800/900/1800/2600 MHz LTE
1.5 (2023) [10] SUE DPR "ROS"201525097
8 MKS Luhansk GSM-900/1800 MHz
2100 MHz UMTS
900/1800/2600 MHz LTE
1.0 (2022) [11] OOO MKS201525098
9 K-Telecom Crimea, Sevastopol, Luhansk, Donetsk, Zaporozhye, Kherson GSM-900/1800 MHz
2100 MHz UMTS
2600 MHz LTE
0.5 (2021)OOO K-Telecom201425032, 25096
10 Miranda Crimea, Sevastopol, Luhansk, Donetsk, Zaporozhye, Kherson GSM-900 MHz
2100 MHz UMTS
450 MHz LTE
0.5 (2024) [12] OOO Miranda-Media201425054
11 Vainah Telecom Chechnya GSM-900/1800 MHz
2300 MHz LTE
0.1 (2020) [13] JSC Vainah Telecom200925008

History

In 1963, USSR's first mobile phone network using the car phone came into operation. [14]

Initial selection of technological mobile standard in Russia had been left for market forces by issuing licenses for different standards. Later, regulatory authorities have developed stricter policy. However, there still exists a great variety of both analogue and digital standards. NMT standard was a first generation analogue mobile technology that still has footstep in Russia, employed by commercial mobile operators since the early 90s. [15]

Regional operators have deployed the GSM [16] networks in Russia since 1995, originally in the 900 MHz frequency band. GSM standard is dominating in Russian mobile market with small number of NMT-450, AMPS/DAMPS subscribers.

In 1994, a joint venture of Moscow City Telephone Network, T-Mobile and Siemens, which later became part of Mobile TeleSystems, offered Russia's first mobile phone service for the public in Moscow. [17] In the same year in June, VimpelCom also started Beeline mobile phone service. [18]

In 2002, MegaFon was formed to provide all-Russia service, amalgamating Sonic Duo of Moscow, Mobikom-Novosibirsk, and other companies. [19] In that year also, the number of mobile subscribers in Russia soared by 130% to 18mn, implying penetration of 12.3%, compared with 5.4% at the end of the previous year. The continued strong growth of the cellular subscriber base was largely due to the accelerating regional rollout of the major national cellular operators. In 2007, MegaFon started Russia's first 3G service in Saint Petersburg. [20]

Russian WiMAX operator Scartel (Yota brand), finished in 2010 its implementation of a trial LTE network in Kazan and plans to deploy LTE networks in Novosibirsk and Samara. In July 2010 Scartel received approval from regulator Roskomnadzor to abandon WiMAX for LTE, re-using its existing spectrum. the regulator had however previously insisted that the frequencies allocated to Scartel for WiMAX could not be used for other access types.

On the Amur Highway at the beginning of October 2011 MTS, Vimpelcom and Megaphone completed the construction of a joint network to provide mobile communication. Operators built across the highway 102 towers (of 140 towers) for base stations, 32 of which have launched MTS and "MegaFon" and 38 by VimpelCom, now Veon Ltd (due to the fact that it has only in the Far East 3G licenses, and in some regions of the Federation, GSM-1800).

The 2012 tender of the Ministry of Communications awarded licenses to deploy LTE networks in the lower (720790 MHz, 791862 MHz) and upper (25002690 MHz) bands to the "big 3" (Megafon, MTS and Veon) and to the national fixed-line operator Rostelecom. Each of the winners relies on two lanes wide in the upper range of 10 MHz and 7.5 MHz in the lower. The upper range of frequencies considered to be free and is suitable for deploying LTE. However, the lower, mostly occupied by the security forces and navigation and radar systems. [21]

On September of that year MTS launched the country's first TD-LTE network, using the TD-LTE spectrum in the 25952620 MHz band it secured in February. [22] Nokia Siemens had provided its Single Radio Access Network using energy-efficient Flexi Multiradio Base Stations as well as its Liquid Core-based Evolved Packet Core platform.

In November 2013 Megafon began to provide the LTE network in the Republic of Kalmykia, the Yamal-Nenets Autonomous Okrug, and the Altai Krai. The network was launched in major cities in the regions Elista, Noyabrsk, Novy Urengoy and Gorno-Altaisk. [23] On the same month Mobile phone retailer Svyaznoi started selling SIM cards under the Svyaznoi Mobile brand in November, becoming a new mobile virtual network operator (MVNO), using MTS infrastructure. Interregional TransitTelekom said a month later that it also plans to launch an MVNO in April 2014 targeting migrant workers, offering low cost calls to Central Asian countries.

In December 2013, Minister of Communications, Nikolay Nikiforov recalled that in 2011 270 base stations of LTE were launched, in 2012 about 4,000, in 2013 10,000 and it is planned that in 2014–2015 more than 15 thousand such stations. [24] On the same month it was announced that the "biggest four", Rostelecom, MTS, Beeline and Megafon completed the construction of communication facilities in the areas of transport corridor "North  South" and "East  West", with a total length of more than 11 thousand km. Work was done to ensure that these routes support advanced cellular communication, and operators spent money under the federal program to improve road safety and implementation of the "Glonass Era". Objects were built on federal roads M5 Ural, M6 Caspian, M53, M55 Baikal and M60 Ussuri according to the press service of the Ministry of Communications of Russia. Costs for the construction of antenna towers were divided by the operators on an equal share, and the cost to provide power to the communication infrastructure undertaken by the state. [25] At the end of this month Scartel (Yota brand) launched LTE network in the cities of Cheboksary, Irkutsk, Kirov, Omsk, Penza, and Ulyanovsk. [26]

On December 4, 2013, the first Russian smartphone, Yotaphone was launched. The idea of YotaPhone was created in Russia, but manufacturing and assembly of the phone is done in China. [27] [28] YotaPhone is a smartphone with support for fourth generation networks, LTE. Feature of the device is the presence of a 4.3-inch screens on two sides: The LCD one is on the front, while the black and white screen with "electronic ink" is on the back side. The first device was awarded to Prime Minister of Russia Dmitry Medvedev by Rostec state corporation head, Sergei Chemezov. [29] [30]

For new technologies, Russia's mobile phone industry has depended on overseas companies. [31] For example, in 2009, MegaFon revealed that Nokia Siemens Networks (NSN) was selected as the winner of its tender to building 3G network and that the following companies together would collaborate on MegaFon's 3G deployment and upgrades until 2010: [32] Nokia Siemens Networks (NSN), Huawei Technologies, Alcatel-Lucent, Ericsson and ZTE.

The Russian mobile phone service operators have been active in their presence in the CIS and other foreign countries. As of 2025, Beeline is already in Kazakhstan, Kyrgyzstan and Uzbekistan . MegaFon is in Tajikistan, and MTS is in Belarus.

Russian manufacturers

Euroset retail pavilion in Tver, Russia Tver streets 5.jpg
Euroset retail pavilion in Tver, Russia

Number portability

Mobile number portability officially became available in Russia on December 1, 2013. An appropriate legislation signed into law by President Vladimir Putin a year earlier, on December 26, 2012. Operators have repeatedly stated that the time allotted is not enough to run services. [34] Within 12 days since the law came into force, 9090 subscribers filed applications to move to another operator, of which only 57 until satisfied. [35]

See also

References

  1. "A glimpse into the Russian smartphone market".
  2. "Финансовые и операционные результаты Группы МТС за 3 квартал 2024". mts.ru. Retrieved 2025-01-30.
  3. Структура акционерного капитала ПАО «МТС»
  4. "МегаФон подвёл финансовые итоги первого полугодия 2024 года". MegaFon. 2024-08-16.
  5. Структура акционерного капитала ПАО «МегаФон»
  6. "Финансовые и операционные результаты деятельности «Ростелекома» за III квартал и 9 месяцев 2024 г." (PDF). rt.ru. Retrieved 2025-01-30.
  7. "Финансовые и операционные результаты билайна за 3 квартал 2023 года" . Retrieved 2025-01-31.
  8. О компании Мотив
  9. Таттелеком в цифрах
  10. "Донецкий мобильный оператор «Феникс» заработает во всей России" (in Russian). Retrieved 6 March 2025.
  11. О компании - ООО «МКС»
  12. ""Миртелеком" запустил 450 базовых станции в Запорожской и Херсонской областях в 2024 году" (in Russian). Retrieved 6 March 2025.
  13. "Связь с вайнахским акцентом" (in Russian). Retrieved 6 March 2025.
  14. "First Russian Mobile Phone  English Russia" . Retrieved 15 June 2016.
  15. Nordiac Mobile Telephone
  16. Global System For Mobile Communications
  17. "History". Archived from the original on 9 March 2010. Retrieved 15 June 2016.
  18. History of VimpelCom Archived 2009-10-26 at the Wayback Machine
  19. History of MegaFon Archived 2010-02-14 at the Wayback Machine
  20. MegaFon starts 3G network. Archived 2010-03-12 at the Wayback Machine (2007)
  21. "263 LTE-сети запущены в коммерческую эксплуатацию". comnews.ru. 21 January 2014. Retrieved 22 January 2014.
  22. "MTS launches first TD-LTE network in Russia". 22 September 2012. Retrieved 15 June 2016.
  23. ""МегаФон" добавил еще LTE". comnews.ru. Retrieved 16 November 2013.
  24. "Минкомсвязи верит в LTE". comnews.ru. Retrieved 6 December 2013.
  25. "Операторы завладели трассами". comnews.ru. Retrieved 21 December 2013.
  26. "Russia's Scartel to launch LTE networks in six cities on Wednesday". PRIME. Retrieved 5 January 2014.
  27. "Как и зачем делают двухсторонний YotaPhone 2". www.gq.ru (in Russian). Retrieved 2019-02-28.
  28. "Производство YotaPhone 2  как это происходит?". yotaphone.com. Retrieved 2019-02-28.
  29. "В России стартовали продажи YotaPhone". ITAR TASS . Retrieved 14 December 2013.
  30. "Russian PM Medvedev receives dual-screen YotaPhone". Pravda . Retrieved 14 December 2013.
  31. Russia's three providers plan 3G
  32. MegaFon's 3G plan (2009)
  33. ""Связной" продал Explay" . Retrieved 10 September 2016.
  34. "Абоненты начали голосовать ногами". comnews.ru. Retrieved 16 December 2013.
  35. "MNP разменяла первые десять тысяч". comnews.ru. Retrieved 14 December 2013.