Development of broadband. Prospects and possible ways of developing broadband services in Russia

J'son & Partners Consulting presents preliminary brief results of the study of the Russian market of fixed broadband access (BBA) among private users.

Description of the fixed broadband market

According to preliminary estimates by J'son & Partners Consulting, the number of fixed broadband subscribers in 2016 increased by 1.5% and amounted to 30.8 million.

Rice. 1. Number of fixed broadband subscribers in Russia, mln.

In the context of declining market growth, telecom operators are increasingly focusing on improving the quality of service, "lifetime" and subscriber loyalty. To do this, operators choose a multi-service development strategy for their business. Operators develop digital communication channels, implement package offers, create co-branded tariff plans, offer the subscriber more modern broadband access equipment, develop additional services based on the Internet channel, such as smart home, video surveillance, burglar alarms.

According to J "son & Partners Consulting, in cities with a population of more than 100 thousand people, about 44% of households use package offers, and in the future their share will only grow due to the high share of package tariffs in new sales of operators. For example, among new subscribers operator "Rostelecom" two-thirds choose package offers.

In 2016, the development of tariff plans continued, including fixed and mobile services from one operator. In March 2016, the VimpelCom operator launched the ALL-IN-ONE convergent offer on the market, and in November 2016, Rostelecom launched mobile communication services under its own brand into commercial operation. ER-Telecom launched a joint project with MegaFon to package fixed and mobile services. Previously, similar projects were launched by MGTS and NETBYNET together with their parent companies. Such proposals are popular among the population. According to VimpelCom, 500,000 families connected to the ALL in One service in 10 months. At the end of 2016, more than 200,000 subscribers used mobile services from MGTS.

According to J "son & Partners Consulting, in medium and large cities, 1-2% of families already use four communication services from one operator. The implementation of such solutions reduces the outflow of subscribers, increases customer loyalty and overall revenue from one household. Er-Telecom operator "Notes that when connecting a 4 in 1 package, the outflow is approximately 3-4 times less than when connecting a monoservice. The downside of package offers is a decrease in ARPU for each individual service included in the package tariff plan.

In the domestic consumption of fixed broadband services, operators note an increase in the share of online video in the structure of incoming traffic. According to AKADO Telecom, the share of online video in the traffic consumption structure of one subscriber in the operator's network is approximately 40%. The growth in traffic consumption stimulates the growth of speeds and the technological development of the network infrastructure of operators. Increasingly, there are ultra-fast offers with Internet access speeds over 100 Mbps. According to J "son & Partners Consulting, in medium and large cities, the share of ultra-high-speed tariff plans among users of fixed broadband access was almost 10% at the end of 2016.

However, operators go further in promoting high speeds for the user. With the growing number of mobile devices in the family, the speed of data transfer via Wi-Fi technology is becoming more and more relevant. On standard Wi-Fi equipment, ultra-high-speed tariff plans do not make sense due to the limitation of the wireless data transfer speed in it. To solve this problem, operators offer dual-band routers that operate on two frequencies - 2.4 and 5 GHz - and provide faster data transfer rates over Wi-Fi. The emerging trend in 2014-2015 continues to develop, and more and more operators begin to offer advanced Wi-Fi equipment as part of their tariff plans for fixed broadband access.

Assessment of the competitive situation

According to preliminary estimates by J'son & Partners Consulting, at the end of 2016, the top 5 operators served 70% of all subscribers of fixed broadband Internet access in the private segment. During the year, the market share of the leaders increased by 3.2% due to M&A activity and organic growth.

Rice. 2. Shares of TOP-5 fixed broadband operators by subscribers, 2016

According to preliminary estimates by J'son & Partners Consulting, in 2016 the total subscriber base of the top 5 players grew by almost 1.3 million subscribers, with an annual growth of 6.3%. In 2016, Rostelecom, ER-Telecom and MTS showed strong growth – 56%, 24% and 16% of all new subscribers, respectively. Some of the new subscribers were obtained inorganically through the purchase of local operators. In 2016, Rostelecom bought the AIST and Morton Telecom providers. At the beginning of 2016, the operator ER-Telecom completed the acquisition of Enforta, and in August the company bought out the business in the fixed-line segment in St. Petersburg and Ryazan (InterTelecom and Enling Telecommunications companies) from the Westcall group.

Main trends in the Russian market of fixed broadband Internet access among private users

Development of package tariff plans and converged services

According to J "son & Partners Consulting, in cities with a population of more than 100 thousand people, about 44% of subscribers use package offers, and the total number of users of four services at once from one company ("quadropplay") is estimated at 1-2%.

Growth of high-speed tariff plans (100 Mbps and more)

According to J "son & Partners Consulting, in medium and large cities, the share of ultra-high-speed tariff plans (more than 100 Mbps) among users of fixed broadband access was almost 10% in 2016. More and more companies offer dual-band routers to implement high speeds via Wi -Fi This solution makes it possible to use the potential of such speeds more efficiently.

Growth of connections on optical technologies, including PON

At the end of 2016, about half a million users connected to the Internet using PON technology. Due to the active development and connection by Rostelecom and MGTS of subscribers using PON technology, the share of such customers in the total mass of broadband users was 10%.

Activity of operators in the field of M&A

In 2016, Rostelecom bought the AIST and Morton Telecom providers. At the beginning of 2016, the operator ER-Telecom completed the acquisition of Enforta, and in August the company bought out the business in the fixed-line segment in St. Petersburg and Ryazan (InterTelecom and Enling Telecommunications companies) from the Westcall group. According to J "son & Partners Consulting, there are about 20 independent providers in Russia with a subscriber base of more than 50 thousand.

Industry Opinions

As part of the preparation of the study, J "son & Partners Consulting specialists interviewed key players in the fixed broadband market and learned their opinions on the main trends in the market.

Kulakovskiy Dmitry, MGTS PJSC, Marketing and Business Development Director

– In 2016, the Russian telecommunications market was actively transformed under the influence of a number of multidirectional factors, which include the economic crisis, during which household incomes are falling, and the dynamics of technology development. The Internet has already ceased to be something innovative and has become a basic product, like water and electricity. Nevertheless, even in the Russian broadband market, with an average market level of 4-5%, we grew by more than 7%, actively working with product quality and developing the technological base itself - for example, we brought dual-band routers with ultra-fast Wi-Fi to mass sales.

We also note the growth of the base of MGTS on IP TV - the most modern television technology. During the year we connected more than 100 thousand new subscribers.

MGTS, as part of its strategy of a multiservice operator and the search for new growth points, has focused on the introduction of new services within the framework of the concept of an intelligent environment - "smart home", "smart office", "smart city". Video surveillance and alarm systems are already on the market, and other "smart" solutions based on Internet access are in the pipeline. We occupy our niche, we aim to create the best converged package offers from various services and give customers the opportunity to save the family budget. At the end of 2016, more than 200,000 subscribers used our mobile services. We view these figures as a good result.

In 2016, we were faced with the task of actively increasing the subscriber base for broadband access and TV services and increasing the number of users of new services. The MGTS team fully coped with these tasks.

Evgeny Badaev, PJSC VimpelCom, Head of Marketing Service wired internet and convergent products

- The main trend of 2016, of course, was the launch of a full-fledged Beeline convergent offer "ALL in One", by the way, the first and only one in Russia. In one offer, we combined mobile communications and home services ( home Internet, digital TV, Beeline TV application, etc.). Not only the product itself is unique, but also its price - only 1 ruble is added to the cost of mobile communications for home Internet, digital TV and other services.

After the launch of “ALL in One”, the Russian broadband market revived: small regional players began to “speculate” on the topic of the ruble, and large ones began to pilot in some form near or even conditionally convergent products, different in composition.

What can motivate better than the price of 1 ruble for home Internet, digital TV, mobile app"Beeline" and other services? But even despite a really profitable offer, we continue to develop it further. For example, in September, ALL in One subscribers became available new service- home insurance. We are also working on the launch of a smart home, and what else we will add next - time and the real needs of our customers will show.

In less than a year, the ALL-IN-ONE converged offering has won the trust and loyalty of 500,000 households in more than 100 largest cities Russia. The relevance and relevance of the offer is proved not only by the record number of customers over the 10 months of its existence, but also by the high satisfaction rate (94%) and NPS (65%) of those who connected.

Alexey Nazarov, TransTeleCom Company, Advisor to the President for Business Development in the Mass Market

– 2016 in the telecommunications market was remembered for the active development of OTT technologies. We are also seeing an increase in the number of cases in the field of convergence of players in the fixed and mobile communications market, in terms of the development of FMC and MVNO services.

One of the trends, of course, is the vector set by a number of players aimed at reducing prices for Internet access and digital TV services. If you look at the speed / price / quality ratio, the tariffs in force in the Russian Federation are already among the lowest in the world.

In conditions of market saturation, telecom operators are doing everything possible to increase user loyalty. TTK, first of all, relies on the quality of services provided and the improvement of the level of service. In addition, we constantly conduct federal marketing activities.

This year, we really expect to offer our subscribers a number of new products that meet the main product needs of the audience. I mean, of course, the digital interactive television platform. At the moment, TTK is working on features that will make our product stand out from the rest. Also, as we reported earlier, we are working on the possibility of launching a virtual mobile operator.

In 2016, TTK managed to achieve good results in terms of connecting new subscribers. By not making asset purchase transactions, we increased our subscriber base by 4%.

Artem Chermenin, PJSC Rostelecom, Director of Mass Segment Products Department

– The Russian fixed broadband market is at the stage of maturity, which is characterized by high competition, slowdown in growth. Nevertheless, Rostelecom continues to grow at a rate above the market, thanks to an ambitious program for the construction of optical access networks (32 million households across the country have already been covered). The number of subscribers connected via "optics" is growing year by year at a rate of over 20%. It is important to note that optical technologies make it possible to offer high-speed Internet in combination with other services, primarily IPTV. It is important to note that two thirds of new Rostelecom subscribers subscribe to a package of at least two services (broadband + TV).

Now we are talking about the transformation of the telecommunications industry in Russia, operators are following new trends: transformation into digital service operators, convergence, expanding the product line and launching niche offers for specific target segments, the entry of telecom operators into adjacent markets, the transition to personalized relations between the operator and the subscriber (tools big data and artificial intelligence).

Every year the requirements of customers to the quality of services provided and to the level of service are becoming higher. Therefore, a particularly important initiative for Rostelecom is to improve customer service: the company has created a separate vertical responsible for customer experience in all aspects. The company is learning to look at all business processes through the eyes of the client, to optimize the Customer Journey (from the first acquaintance with the company's services to resolving issues in the contact center). The goals are to improve user satisfaction, reduce churn, and increase NPS. Rostelecom also continues to develop its own federal program loyalty for private clients.

Rostelecom is constantly working to create new offers tailored to the needs of customers and in accordance with market trends. In 2017, Rostelecom will continue to develop its gaming business (co-branding offers with leading game developers). In 2016, Rostelecom, in partnership with Wargaming, for the first time launched a Game tariff, unique for the market, especially for Russian players: reliable high-speed Internet access (up to 200 Mbps) and exclusive gaming bonuses that are not available to subscribers of other operators, in in particular, an exclusive tank.

The main effect that we expect from the introduction of the package offer is a significant reduction in the outflow of subscribers using fixed and mobile communication services. Mobile communication services under the Rostelecom brand were put into commercial operation only in November 2016, so it is too early to draw conclusions. Our expectations, in addition to reducing churn, are an increase in income from a household (family), as well as an increase in customer loyalty.

Vladimir Karpenko, AKADO Telecom, Director of Product Development Department

- The broadband access market is saturated, so operators are no longer so focused on attracting new customers - they have shifted their focus to maintaining the existing subscriber base by improving the quality of services and creating additional services.

Various package offers, bonuses and promotions, low tariffs are also actively used as tools. For the first time in several years, a decrease in ARPU can be noted. Due to the slowdown in the rate of commissioning of new housing, the number of connections of new apartments has decreased and, accordingly, the percentage of market growth due to new subscribers has decreased. The share of online video is still growing in the structure of broadband traffic. Now the share of online-video in the structure of traffic consumption of one subscriber in the AKADO Telecom network is approximately 40%.

Market map has not undergone significant changes: the players of the Russian broadband access market, with a few exceptions, retained their positions. The same applies to the Moscow broadband market, where AKADO Telecom is one of the three largest players, according to analysts.

Our strategy is based on improving the quality of Internet access and customer service. For example, last year we began to connect subscribers to the Internet and carry out service work day to day, which allowed us to significantly increase the number of promptly processed applications and increase subscriber loyalty. We have launched several profitable complex offers, which included Internet access and DTV services with new packaging and new services based on high speed internet, for example, a security alarm service for subscribers - individuals. This year we have also developed complex offers, which are among the best in Moscow in terms of price-quality ratio. The plans include the launch of the Smart Home service and the interactive television service - we are actively working on the launch of these projects today.

Mikhail Vorobyov, ER-Telecom Holding JSC, Deputy CEO- b2c director

– In conditions of market saturation, operators are looking for new ways of development, including the joint use of telecommunications infrastructure, the launch of convergent services, and entry into niche segments.

One of the key industry trends is the bundling of mobile and fixed services, MVNO. Operators that do not launch converged offerings in the near future will begin to lose competitiveness.

The second trend is a decrease in the share of local players. They begin to lose ground, because they cannot provide sufficient investment in the construction and modernization of networks, the launch of new products, and the “Internet speed race”.

The third trend is that all federal providers have begun to pay more attention to increasing customer loyalty, which should lead to a decrease in churn in the future. Operators invest in "big data", loyalty programs, technical support call centers.

Among other trends is the actualization of the speed characteristics of tariffs: there are more and more offers with a speed of more than 100 Mbps. And the ever-increasing number of devices that need Internet access is driving the demand for dual-band Wi-Fi routers that operate on two frequencies - 2.4 and 5 GHz - and provide faster and more stable network access.

Dom.ru focuses on increasing user loyalty. We have launched a global project to improve customer experience, as a result of which we will review all business processes at all points of contact with subscribers. One of the stages of the project is a unified system for collecting, analyzing and processing feedback from customers, whose opinion becomes the basis for solving both systemic and private service-related issues. We involve our users in the process of improving services, services, maintenance in order to become as open and convenient as possible for everyone. All Feedback analyzed in unified system and in real time goes to the relevant services and senior managers.

Another important project is the Dom.ru Club loyalty program launched in 2016. By joining the program, each client receives points for purchases in stores, which they can spend at their discretion, including paying for Dom.ru services. More than 100 federal and regional companies act as partners of the program.

One of the important events of the year was a joint project with MegaFon, which now operates in 30 cities. Subscribers can receive a permanent discount of 20% on the services of both companies - Internet with digital TV and mobile communications. Bundling of mobile and fixed services is becoming a new industry standard.

We are considering the possibility of launching video surveillance and a smart home. The active development of this area is hampered by the complexity of integration and the lack of technical readiness of related industries. Another promising direction both in Russia and around the world is related to the distribution of content. Operators are looking for niches in the related business and are focusing their efforts on developing the ecosystem around the client.

At the end of 2016, we exceeded a number of planned targets, which confirms the interest of customers in a convergent product that makes it possible to save on communication services. The project remains interesting for both customers and operators. We see a positive trend in the global and Russian market: Strong demand for converged services, with minimal churn. When connecting the "4 in 1" package, it is approximately 3-4 times less than when connecting a monoservice.

In 2016, we strengthened our positions in the broadband segment. The subscriber base and, accordingly, revenue increased due to the high-quality work of the staff, the launch of new offers and services, and M&A.

With the development of the Internet for governments in many countries, the positive impact of high-speed networks on commercial companies, public organizations and ordinary citizens is becoming more and more obvious. Broadband networks have long been an integral part of the infrastructure of the global information community. They provide users with constant high-speed access to a variety of web services, content and software.

Over the past ten years, many success stories and academic studies have been published on the benefits of broadband access, which include new business opportunities and innovative technologies, increased sales and productivity, reduced costs, created new jobs and attracted foreign investment. Recent studies have proven that the availability of reliable broadband networks stimulates GDP growth in industrialized countries and can provide similar benefits for emerging market economies.

While the economic benefits of high-speed networks are clear to both developed and developing countries, the latter often have different infrastructure, regulatory frameworks and a much more distinct rural-urban divide. There are other factors influencing the spread of broadband access. The specifics of countries with economies in transition do not force them to abandon the deployment of broadband networks in them, but force them to use the most efficient practical methods for the quick and cost-effective organization of the introduction of high-speed access channels, as well as for the development of other information and communication technologies and services.

Modem connections have lost their meaning

Compared to a dial-up connection, broadband networks have higher bandwidth. Subscribers of high-speed networks receive the following benefits:

the ability to connect anywhere and at any time - broadband networks are available wherever there is an appropriate infrastructure;
expanded opportunities for working in multimedia applications: high bandwidth of broadband access networks allows you to comfortably play network video content and use other multimedia resources;
cost reduction - Web surfing, e-mail processing and other office applications using broadband Internet connection are even faster, which increases productivity and reduces the cost of analyzing marketing information;
new opportunities for communication - broadband networks allow real-time communication over e-mail, in instant messaging programs, in VoIP-enabled applications, making it easier for businesses to connect with suppliers, customers and partners around the world.

Impact of broadband networks on the economy

The developed countries

Studies conducted in industrialized countries have confirmed that broadband networks contribute to the development of the economy and social spheres like health care and education.

Accenture calculated in 2003 that deployment of broadband communications throughout the United States could add an additional $500 billion to US GDP and an additional $400 billion to European GDP.

Broadband networks primarily contribute to the development public organizations and private companies, for which a positive impact was noted in the form of increased productivity and the creation of new jobs. Another study proved that with an increase in the number of broadband network users by 1%, the number of jobs will grow by 0.2-0.3% per year. The results of another study show that between 1998 and 2002 in the United States, actively introducing new communication technologies, there were many new job openings and an increase in the number of companies employed in the IT sector.

The widespread adoption of Internet-enabled business applications has saved US companies $155 billion. In turn, entrepreneurs in France, Germany and the United Kingdom have seen their profits rise by $79 billion.

Countries with economies in transition

More than 30% of the population in industrialized countries has access to broadband communication channels, while in most developing countries, high-speed Internet access services are virtually non-existent or so expensive that they are practically inaccessible to corporate and private users. About 1% of all broadband subscribers are concentrated in developing countries. In 2007, they were no more than 5% of the total population of the planet, of which 1% was on the African continent, up to 10% - in North and South America, up to 16% - in Europe.

Due to the low penetration of broadband access networks in developing countries, their social and economic benefits have been little explored. Nevertheless, according to preliminary estimates, the introduction of high-speed communication channels will provide such states with a wide range of opportunities, including GDP growth, increased competitiveness and attraction of foreign investment. Although such a positive trend is difficult to measure in concrete terms, a recent publication noted that developing countries with better telecommunications infrastructure are attracting more offshore services, outsourcing companies and foreign investment.

The economic conditions in most developing countries are similar, and the ubiquity of broadband networks will be extremely beneficial in them. For example, the bulk of the population in such countries, and consequently, small and medium-sized businesses, are located outside of large cities. The development of broadband networks in suburban areas will create new jobs, increase profitability and productivity and generate additional profits from the non-agricultural sector of the economy, while increasing the profitability of agricultural enterprises. With access to new technologies, rural residents can better prepare for a possible move to the city or, conversely, change their minds about changing their place of residence.

The development of high-speed networks will help attract citizens and entrepreneurs from agricultural or hard-to-reach areas to the development of the national economy and provide the state with new opportunities for the development of infrastructure (transport networks, educational and medical institutions) in rural areas. The deployment of broadband networks in non-urban areas contributes to the development of an interactive form of communication between government and society - e-government. And students, even from remote villages, will have access to educational resources from which they will learn about the technologies necessary for successful life in the 21st century.

Broadband networks accessible to everyone

Once upon a time, the benefits of high-speed networks were out of reach for the citizens of most transition countries. This was especially true for the population living in rural areas and in hard-to-reach areas, where the laying of digital subscriber lines (DSL) and dedicated cable channels is too expensive or difficult. Fortunately, as technology advances, broadband networks have become more accessible, reliable, cheaper, and easier to implement. Modern high-speed networks can be deployed in remote regions by combining trunk lines with last mile solutions. Among affordable backbone channels are wired and satellite communication lines, as well as wireless connections point-to-point with IP support.

For "last mile" segments in rural areas, WiMAX and Wi-Fi technologies are suitable (in areas where signal strength restrictions do not reduce the coverage area). Such wireless systems are suitable for remote regions, and their deployment is faster and cheaper compared to wired links. In addition, wireless network users are more mobile, and network infrastructure can be scaled up incrementally based on demand without major costly upgrades.

A cost-effective solution for the last mile will be WiMAX technology, which provides high-speed and low-cost wireless access to the Internet. WiMAX access points have a large coverage area and are therefore suitable for hard-to-reach and rural areas. Deployment of WiMAX networks supporting the IEEE 802.16e protocol will cost less than laying modern cable lines. WiMAX technology provides access to both fixed and mobile services, making it suitable for use in both urban and rural areas. It supports voice and data transmission, providing additional savings and making communication services more accessible.

Urbanization and broadband networks

The outflow of the population from rural areas to cities, caused by the search for work and more comfortable living conditions, is typical for all developing countries.

The consequences of urbanization can be considered on the example of China, 55% of whose population lives outside large cities (for comparison, in the United States, no more than 20% of the population lives in rural areas). The mass migration of the population to cities will lead to the fact that by 2025 their electricity consumption will more than double, and water consumption will increase by 70-100%. By that time, polyclinics and hospitals will not be able to cope with the flow of patients, and schools and universities will not be able to cope with everyone who wants to study. In addition, the decline in arable land and the growing need for natural resources have a detrimental effect on the environment.

The development of broadband networks will help mitigate negative consequences urbanization, namely:

reduce the desire of the rural part of the population to move to the city - affordable broadband services contribute to the economic development of rural areas, increase incomes of the population, improve living standards and reduce the need and desire to move to the city;
increase the level of education of the population - residents of agricultural and hard-to-reach areas will receive new opportunities for education and an understanding of modern information and communication technologies, which in the future will allow them to find more profitable jobs in the city and reduce the burden on city social services;
improve the standard of living in the city - the sharing of broadband networks and other technologies allows you to organize work processes, the participants of which do not have to be concentrated in one city. This increases labor productivity, reduces the load on the power grid, the noise level in the city and helps to reduce other factors of harmful effects on the environment.

Fundamentals of Successful Broadband Deployment

The key to the successful implementation of broadband networks are favorable conditions, for the creation of which five main principles can be identified.

Development of regulations to encourage investment in new markets

Rapid deployment of broadband networks in most developing countries requires new regulations to meet market demands. One of the reports presented at the World Summit on the Information Society noted: “In order to maximize the benefits in the social, economic and environmental spheres, it is extremely important to create a reliable, transparent and equal regulatory environment for all…”

Governance reforms will help create favorable conditions for the introduction of new technologies. Hundreds of countries have state regulatory bodies. Privatization and market liberalization will attract investment from the private sector and create healthy competition. transparent legal environment will provide confidence to investors and encourage infrastructure sharing.

Lacking economic incentives, telecom operators will refuse to deploy broadband networks in rural areas, where, nevertheless, the majority of the population of developing countries lives. Therefore, a variety of incentive measures, such as tax incentives, are recommended to attract telecommunications service providers.

Reforming public policy will have a massive impact on the development of information and telecommunications technologies, in particular broadband networks. More and more countries are changing the rules for using the Universal Service Fund, directing these funds to development not only telephone lines but also high-speed networks. As a result, even in countries as dissimilar to each other as Pakistan, Chile, India and Malaysia, voice and data services over the Internet are being widely introduced, including in hard-to-reach areas.

Investments in key infrastructure components and innovative technologies

One article published in The Economist noted that "broadband access services will not be in demand in regions where there are problems with electricity supply and computers are a luxury for the population." Therefore, in countries with economies in transition, it is first necessary to invest in the main objects of the IT infrastructure, including software and computers. Such investments will contribute to the successful introduction of new telecommunications services.

World Bank analysts believe that if science-intensive technologies occupy 5% of the market in an industrialized country, then the probability of expanding their niche to 50% is very high. However, in transition countries, only six of the 67 technologies that account for 5% of the market are able to reach the level of 50%. This is mainly due to the insufficient development of intermediate technologies that are necessary for the implementation of advanced ideas.

Governments in developing countries planning to introduce broadband services should focus on building critical infrastructure, such as reliable power lines and transport networks. Over time, all investments in infrastructure and IT initiatives will create favorable conditions for the deployment of high-speed communication lines.

Radio spectrum allocation for broadband access networks

Allocating a radio-frequency spectrum band for wireless networks is undoubtedly beneficial: the state, for a fee, provides a range of frequencies for private companies that operate in it, attracting new industries and technologies. Answering the question of when to allocate the spectrum - now or later, we argue that the time has already come.

Delays in the allocation of radio-frequency spectrum on a competitive basis may be due to concerns about the risks of shortfalls in income, as well as pressure from some officials lobbying for the monopolization of this segment of the industry. Of course, this creates obstacles for the introduction of innovations and the organization of affordable broadband communication services, and the state does not receive a profit from the lease of the frequency range.

As soon as the sale of licenses for the use of the spectrum of frequencies begins, there will be those willing to invest in wireless technologies and new communication services will appear on the market. Therefore, the allocation of radio frequencies on a competitive basis allows you to extract additional benefits on a national scale. However, it must be understood that it is not so much the rental income that is important, but the implementation of the conditions that ensure the continued lease of the spectrum. And the benefits to subscribers from using mobile broadband services are 18 times higher than the actual costs.

The allocation of the radio frequency spectrum will stimulate competition and, consequently, contribute to the development of the economy. Broadband wireless networks convenient for subscribers, stimulate innovation and ultimately increase GDP.

Encouragement of competition

After reforming the legal sphere, it is necessary to focus on the development of competition, since it is this that ensures the development of markets in 80% of the countries of the world. Transparent government policies and relevant legislation stimulate competition that attracts investors, ensures reasonable prices for goods and services, and makes network deployment throughout the country more cost-effective.

Developing a competitive environment is not easy. Innovation driven by the introduction of broadband networks and the development of the digital economy can disrupt the country's existing foundations, forcing some policymakers to isolate certain economic segments. Even well-meaning authorities sometimes uphold or enact regulations that stifle competition and thus hinder broadband adoption. Such measures will be more likely to be harmful to society than useful to the person for whose interests they are introduced.

Thus, an economic development strategy must ensure consumer protection without creating harsh market conditions or defending the interests of individual officials, whose aspirations may be too disadvantageous for the whole society.

Development of mutually beneficial cooperation between the public and private sectors of the economy

The successful development of broadband access in any country requires government support, which will ensure the interaction of government bodies, industries and private entrepreneurs.

The standard approach provides for the leadership role of the state and initial investments from the budget. In turn, telecom operators should develop special tariff plans that will provide profit and at the same time will not be burdensome for subscribers. Such tariff plans are sold complete with a personal computer at an affordable price. Financing of telecom operators can be carried out not only from public, but also from private funds, stimulating demand for new services.

Only teamwork at all levels will help telecommunications companies to successfully deploy broadband networks and achieve the goal of a national scale. At the same time, business will receive additional profit, and ordinary citizens will receive access to technologies that cannot be dispensed with in the modern information society.

conclusions

Broadband networks are an integral part of the global information community, provide incentives state economy, creating new jobs, developing innovations and increasing the competitiveness of goods and services. These and many other benefits of new communication technologies will become available to countries with economies in transition, which need to provide suitable conditions for long-term and cost-effective use of broadband networks.

According to the results of the study, the communication market in Moscow is in deep stagnation. According to Direct INFO, the total market volume for 9 months of 2016 amounted to 104.1 billion rubles and, compared to 2015, decreased by 6%. The level of penetration of broadband Internet in Moscow decreased by 1%, presumably due to competition between fixed and mobile technologies.

The market shares of operators have also changed. MGTS became the only operator that showed an increase in its presence in the market. Compared to 2015, the share of MGTS in the broadband Internet market increased by 4% to 37%, in the digital TV market, the operator's share increased by 8% to 34% compared to last year. At the end of 2016, MGTS was recognized as the leader in these market segments.

Key theses of the study:

Revenue from the provision of communication services by Moscow operators amounted to 582 billion rubles and decreased by 1.9% yoy;
The total volume of the market for fixed communications, data transmission and the Internet* amounted to 104.1 billion rubles for 9 months of 2016 and, compared to 2015, decreased by 6%. This is due to the crisis, as a result of which all consumer segments showed a negative trend;
The number of fixed Internet subscribers in Moscow amounted to 3.72 million at the end of 2016 (since the beginning of 2016, the decline was 1%, the fixed broadband market for the population has been declining for two quarters in a row). The total volume of the market in terms of money amounted to about 11.9 billion rubles at the end of the year;
The pay TV market is characterized by general stagnation and even a slight contraction of the pay TV market in January-September 2016. This may be due to the competition of the service with other channels: OTT video services, online video. The growth in revenues of operators in this market is primarily due to the growth of tariffs for services;
The penetration rate of fixed broadband access decreased slightly over the year due to competition with mobile internet(from 92% to 91%). The penetration rate of digital pay TV remained at about the same level (about 32%).

In conditions of stagnation, the following change in the shares of the main players in the market took place:

Three players - MGTS, Rostelecom and Beeline - control more than 70% of the broadband access market in terms of the number of customers. In the first place in terms of the number of MGTS clients (37%), Rostelecom is in the second place (22%), and Beeline is in the third place (14%). The market share of MGTS increased significantly (from 34% in 2015 to 37%). The share of Beeline and Akado, as well as small operators, has decreased;
Three players - MGTS, Rostelecom and Akado - control more than 77% of the pay digital TV market in Moscow in terms of the number of customers. MGTS is in first place (34%), Rostelecom is in second (24%), and Akado is in third (19%). The market share of MGTS increased significantly (from 26% in 2015 to 34%). The share of Beeline and Akado decreased. The share of Rostelecom remained at about the same level.

“We manage to maintain the growth rate of the broadband user base due to the unique speed characteristics of our tariffs. We try to maintain the average market ARPU with almost no decline, providing our users with more speed than competitors. At the end of 2016, over 30% of our subscribers were connected at speeds over 100 Mbps. An important role in maintaining ARPU is also played by convergent offers with TV and mobile communications. All this combined led to a significant increase in broadband revenue in 2016 compared to 2015,” commented Dmitry Kulakovskiy, Director of Marketing and Business Development at MGTS, commenting on the results of the study.

According to TMT Consulting's preliminary estimate, at the end of 2017 the volume of the Russian broadband Internet access (BBA) market in the B2C segment amounted to 130.1 billion rubles, and the number of broadband subscribers - 32.6 million people. The leader in absolute subscriber base growth was PJSC Rostelecom, which increased the number of its broadband users by almost 400,000 (or 3.4%) compared to 2016.

As Irina Yakimenko, an analyst at TMT Consulting, noted in a conversation with a ComNews correspondent, the broadband access market in the B2C segment is saturated, so it is more difficult for operators to attract new subscribers. "The growth of the subscriber base in 2017 continued due to the connections of new housing stock, as well as connections in small towns," she specified.

According to Irina Yakimenko, M&A activity has intensified in the broadband market in recent years. "This is due to the fact that the process of migration of subscribers from operator to operator does not bring long-term benefits to companies, and the opportunities for organic growth in the markets of large and medium-sized cities have already been exhausted," the TMT Consulting analyst noted. In addition, Irina Yakymenko named the increase in the penetration of package services among the last year's trends. "This year, all leading operators have continued to develop convergent offers that combine fixed and mobile services," she added.

Another trend is the migration of subscribers to higher-speed tariff plans as demand for heavy content grows, including online video, and an increase in the number of smartphones, tablets and other mobile devices connected via Wi-Fi. "Providers are also increasing the speed of access in their tariff offers - for example, the leading Moscow provider MGTS (Moscow City Telephone Network PJSC) has excluded Internet tariffs at speeds of less than 100 Mbps from its line," Irina Yakimenko told ComNews correspondent.

According to TMT Consulting's preliminary estimate, at the end of 2017, the number of broadband subscribers in the B2C segment in Russia reached 32.6 million (31.3 million in 2016), penetration - 58%. The market volume amounted to 130.1 billion rubles, which is 3.7% more than in 2016. The ARPU indicator at the end of last year was 339 rubles. According to the analytical agency, according to the results of 2017, the top 5 Internet providers form 69% of the subscriber base of broadband access in the B2C segment in Russia.

According to the forecast of TMT Consulting, no significant changes in ARPU are expected in the near future. On the one hand, the popularity of convergent offers continues to grow, diluting revenue between Internet access, pay TV, telephony and mobile services. On the other hand, due to the migration of subscribers to higher-speed tariff plans, a significant decrease in ARPU is also not expected.

In particular, as analysts noted, Rostelecom remained the leader in absolute growth of the subscriber base. The operator increased the number of broadband users by almost 400 thousand (or 3.4%) compared to 2016. Now the provider has about 12 million broadband subscribers in the B2C segment. Rostelecom is the largest operator on the Russian fixed Internet access market and serves 37% of individual subscribers. The company accounts for about 40% of revenues in this market segment. The growth driver of the operator remains the construction and modernization of networks - the transition to FTTB and PON access technology, at the same time, the company is actively updating tariff and package lines. In 2017, the operator increased the number of its subscribers both in the regions and in the saturated Moscow market,” TMT Consulting reported.

The press service of Rostelecom, commenting on the results of the rating, noted that officially the operator can only operate with data for nine months of 2017, but expects the outlined trends to continue. "Over the past six years, the coverage of Rostelecom's optics has doubled - from 16.4 million to 32.7 million households. This has created the technical basis for the active growth of the subscriber base," the company noted.

As for the broadband segment, the provider's press service considers important not only the overall growth of the subscriber base, but also the dynamic increase in the number of households connected to optical access networks. In 2018, the operator will continue to strengthen its work with developers and the comprehensive provision of modern digital services to both residents of new buildings and management companies.

According to the study, ER-Telecom Holding JSC (Dom.ru brand) took second place in terms of absolute subscriber base growth with a result of 386,000 new customers. "In relative terms, the growth rate of the operator was the highest among the top 5 and amounted to 12.4%. Currently, ER-Telecom has 3.5 million broadband access subscribers in the B2C segment. A significant part of the new subscribers was brought by the acquired companies - LLC "Novotelecom" (brand "Electronic City"), GC "Akado" (JSC "Komkor") in St. Petersburg and Sverdlovsk region, Columbia Telecom LLC in Volgograd," the analytical agency said in a study. TMT Consulting added that, in addition to issues of extensive development, in 2017 ER-Telecom implemented a project to modernize and expand the network.

MTS (Mobile TeleSystems PJSC) took third place in terms of subscriber base growth - an increase compared to 2016 by 218 thousand subscribers, up to 3.1 million people. "Unlike its closest competitors, the growth of the provider's subscriber base in 2017 was only organic. The growth in the number of MTS users occurred both at the expense of MGTS and at the expense of the regions. The company carried out work on targeted expansion and modernization of fixed-line networks in regional markets", - commented in "TMT Consulting", adding that in the Moscow market, the company MGTS occupies a leading position (serves about 33% of broadband subscribers). At the end of 2017, MGTS continued to strengthen its position in the Moscow market, demonstrating an increase of 91,000 users compared to 2016.

"Thanks to the increased marketing activity of VimpelCom PJSC (Beeline brand), for the first time in the past few years, it was possible to stop the decline in the fixed broadband subscriber base and increase the number of service users by 3.2%, to 2.24 million people, compared to 2016 .", - commented in "TMT Consulting" the fourth position of the company in the rating. The analytical agency noted that the company's main successes in the fixed broadband market are related to the development of the All-in-One convergent offer. At the end of 2017, about 39% of the company's broadband access subscribers (or 870,000) used the offer.

"The significant growth of users of convergent tariffs, which increase subscribers' interest in broadband Internet access services, as well as successful marketing activities, have allowed us to increase the broadband access base for the first time in several years. The development of fixed-line communications is one of VimpelCom's strategic priorities, to which we attention this year," the company told ComNews.

JSC "Company TransTeleCom" (TTK) took the fifth position: the increase in the operator's subscriber base last year amounted to 134,000 subscribers (or 8.8%). According to the analytical agency, the operator now has 1.66 million broadband subscribers. "This year, the operator focused on the introduction of new services: it began to develop IPTV services, and also launched its own OTT service "TV Without Borders," TMT Consulting analysts said.

TTK recalled that in 2017 the company was actively introducing new services to provide subscribers with a full range of telecommunications services. In the spring, the operator launched the Interactive TV service, in the summer - the TV Without Borders OTT service. In the fall, the company offered subscribers the TTK TV mobile application, and the adaptation of the TTK TV product for Smart TV platforms is currently being prepared. In addition, TTK last year it entered the mobile communications market by launching the virtual operator TTK Mobile on the networks of its technology partner Tele2 (T2 Mobile LLC).

As TMT Consulting noted, “the structure of the Russian broadband access market has not changed significantly compared to 2016. Due to active M&A activities, the ER-Telecom operator has strengthened its positions: its share by subscribers has grown by 1 p.p. P". "The shares of other operators from the top 5 remained almost at the level of 2016," the agency concluded.

In a conversation with a ComNews correspondent, Irina Yakimenko clarified that the top 10 operators (in addition to the five above) in terms of broadband subscriber base at the end of last year included NetByNet (Nat By Net Holding LLC, a 100% subsidiary of PJSC MegaFon "), Akado-Telecom, Tattelecom PJSC, Ufanet JSC and SMK Siberian Networks JSC.

Investment in ICT infrastructure can set off a chain reaction that will bring about digital transformation. The time for which the country will be able to receive economic benefits from Big Data and IoT will decrease.

With an overview of the report of the UN Broadband Commission - Boris Lastovich.

Since its inception in 2010, the UN Broadband Commission has sought to promote effective and inclusive policies and practices around the world for sustainable development through realizing the benefits of broadband and information and communication technologies (ICTs). The next report of the Commission provides an opportunity to get acquainted not only with current indicators, but also with global trends, as well as with the approaches and assessments of the development of broadband access (BBA), ICT and the Internet adopted in the international community.

Global broadband continues to show healthy growth, although there are some challenges:

the growing digital divide between developed and developing countries, between rich and poor;
discrepancy between real investments and financing needs for the development and modernization of networks;
slowdown in mobile subscription growth - as developed markets approach saturation, operators have to take into account slower growth and adapt to consumer demands.

Measuring and monitoring indicators and trends in broadband and ICT has become more difficult as new (digital) technologies are increasingly integrated, invisible and ubiquitous. The boundaries between telecommunications, IT, ICT and the Internet are blurred today, so any assessment depends on which categories are used.

According to IDC, the global information and communications technology market (including hardware, software, telecommunications, and services) was $4.8 trillion in 2016, up from $3.7 trillion in 2015. The online statistics portal Statista estimates global ICT sector revenue at around 3.98 trillion euros (approximately $4.4 trillion) in 2016, and is projected to reach 4.46 trillion euros by 2019. Annual revenues from telecommunications services exceed 1 trillion euros ($1.4 trillion).

Individual broadband access to networks and services

In terms of network connectivity, the picture is different for mobile and broadband subscriptions (Table 1). According to forecasts, by the end of 2017, the global network will cover about 3.58 billion people, which is equivalent to about 48% of the world's population, against 3.4 billion people (45.9%) at the end of 2016.

It is important to distinguish between simply having access and the number of active users.

A recent study conducted in 75 countries around the world showed that, on average, 94% of the population of these countries lives within the range of a 2G mobile signal. But in practice, it is impossible to effectively use it to access the Internet. Only 76% of the world's population has access to a 3G signal, and 43% have access to 4G connections.

Almost half of the world's population now has broadband access. The digital divide persists mainly due to a lack of infrastructure, a lack of skills to use, or a lack of compelling content. Ineffective policies, outdated regulatory frameworks and a lack of incentives to invest play a role in development issues. Also important are the business models required to provide universal service, one of the incentives to deploy broadband throughout the territory, including rural and remote areas.

Table 2 shows the distribution of Internet users by region. The world's largest Internet market is China: about 700 million users. It is followed by India with 355 million.

Russia has the largest audience in Europe global internet, about 100 million. - Approx. comp.

An assessment of the spread of access would not be complete without considering the growth of online tools and applications used for communication, entertainment, education, healthcare, finance and public services, as well as without taking into account the growth in the number of other connections and devices. Some of the areas of applied application of online tools are considered in the report.

Concerning social networks Let's say WhatsApp increased its monthly active users (MAUs) from 1 billion in February 2016 to 1.2 billion in January 2017. YouTube has also surpassed 1 billion users, and Google has yet to release an update since reaching 1 billion gmail users/accounts in 2016.

According to Facebook, in June 2017, the social network had an average of 1.32 billion daily active users, and the total number of registered users at that time exceeded 2 billion (in June 2016 - 1.71 billion). At the same time, 1.15 billion active Facebook users used exclusively mobile access networks.

The report does not quantify connected machine-to-machine (M2M) communication devices and their development trends. It should be noted that these estimates in different sources differ significantly, but we believe that we can agree with the assessment of the International Telecommunication Union, according to which the number of M2M devices is approaching the number of “live” broadband users, i.e. is estimated in billions, and in terms of pace is ahead of the growth of the latter- Note. comp.

Online content and applications as main drivers of demand

The persistence of unconnected and loosely connected communities is partly a result of the rapid evolution from voice telephony to high-speed networks, as well as problems deploying sufficient communications infrastructure, especially in rural and poorer communities. Running on top of this infrastructure over the past decade, online applications have become increasingly popular with consumers and are driving broadband around the world by enabling interaction in ways that traditional communication channels cannot.

Online applications such as Facebook, Google, Instagram, KakaoTalk, LINE, Signal, Skype, Snapchat, Threema, Viber, WhatsApp and WeChat have changed the way we create informal communities and search for information, have made a valuable contribution to solving applied problems in different sectors and now determine a significant share of the socio-economic results of the spread of broadband access, digitalization, and the use of the Internet.

Not surprisingly, some operators have sought to thwart the growth of online applications, seeing their distribution as an unfair limitation on their revenue and investment opportunities. They demanded that "the same rules for the same services" be applied, prompting the authorities to extend the rules of traditional telecommunications to online applications. Such suggestions are erroneous because telecom operators and online application providers offer fundamentally different services. Traditionally, carriers only offered access to telecom services and some services, while online applications provide interactive experiences.

Gradually, there is an understanding that applications are driving demand for carriers' broadband services. Without compelling content, consumers are less willing to pay for access. It is also false to say that online applications do not have a general economic value for the countries where their consumers live. Recent studies have shown that a 5% increase in WhatsApp has a direct and indirect effect of $ 22.9 billion. According to Deloitte, in 2014 economical effect Facebook made $227 billion and it contributed to the creation of 4.5 million jobs worldwide. These numbers have undoubtedly increased in recent years.

On the other hand, ensuring free access of content providers to the network infrastructure and the quality of its delivery in the face of an avalanche of traffic growth is fully financed by operators who are forced to constantly develop and upgrade their networks without economic benefit. Their incentives to invest in network development are potentially diminishing.

Telecom operators and content providers have a symbiotic relationship, and they can be used to invest in the development of broadband networks. So far, everything is limited to the fact that providers of online applications and OTT content invest only in their own infrastructure: data centers, industrial networks, servers and routers, which are an important part of the physical structure of the Internet, but do not solve the problem of passing the traffic they generate.

On the integrated market there is a shift in value, a redistribution of income from operators to content providers, the share of operators' income from growing sales complex services declining, which also has a negative impact on investment in broadband.

The UN Broadband Commission believes that regulators should not separate the interests of providers of online applications, content and telecom operators. A widely accessible and relevant digital environment is the product of a unified political and regulatory framework that should prioritize development, competition, and innovation based on the interests of consumers in all areas of its use.

Broadband access for households

The proportion of households with broadband (fixed and mobile) Internet access in developing countries is estimated to have increased from 37.6% in 2015 to 41.1% in 2016 and 42.9% in 2017. However, this is a global average that masks deep regional differences: household accessibility varies from 18% for Africa to 84.2% for Europe (2017).

One emerging metric in this regard is the number of smart homes, or homes equipped with remote control devices via smartphones and computers. In Europe and North America, the number of smart homes reached 17.9 million in 2015, of which about 12.7 million (56%) are located in North America. This number is expected to rise to 46.2 million by 2020, equivalent to 35% of all North American households. The European market is two to three years behind. According to the forecasts of the consulting company Berg, by 2020 there will be 44.9 million smart homes in Europe (approximately 20% of European households).

Current global broadband development trends

The digital divide between countries is usually measured by the development of Internet access, but differences in access speed and quality of service (QoS) are also important. According to Akamai, the average global broadband connection speed has steadily increased by 15% per year and reached 7.2 Mbps in the first quarter of 2017. Average connection speeds increased in 114 of the 149 ranked countries and regions. The top ten in terms of average connection speed includes all OECD countries except Hong Kong.

In Russia, the average broadband speed is 11.8 Mbps. This is the 44th place in the world, against 28.6 Mbps in the Republic of Korea, which ranks 1st. - Approx. comp.

GCI data shows that investments in ICT infrastructure can set off a chain reaction that will bring about digital transformation. Clouds are the catalyst for this reaction: they reduce the time for a country to receive economic benefits from Big Data and IoT, which will ultimately contribute to growth and prosperity.

But the use of clouds requires a high-performance and affordable broadband network. A country that increases investment in ICT infrastructure by 10% between 2016 and 2025 will recoup that investment handsomely: each additional dollar of investment in ICT infrastructure can return $3 in GDP today, $3.7 in 2020, and In 2025, the refundable amount will increase to $5. This would mean an increase in global GDP of $17.6 trillion, which is equivalent to the size of GDP European Union in 2016.

Over the past year, there has been an impressive growth in the number of new IXPs, an important form of infrastructure development that can reduce broadband latency and reduce transit costs. From mid-2016 to mid-2017, 24 additional countries created new IXPs, according to Packet Clearing House. There are 145 IXPs in the EU as a whole. Eight countries have more than ten national IXPs, including: USA (84), Brazil (27), Russia (21), Argentina and Germany (20), Australia (18), France and Japan (16).

Mobile telephony and mobile broadband

The importance of mobile communication cannot be overestimated in terms of its economic and social importance. The GSMA estimates that mobile access contributes about $3.1 trillion (about 4.3%) to global GDP and about $431 billion in investment, and directly or indirectly creates 32 million jobs.

The use of the Internet is largely and continuously increasing through mobile devices (on average, about half of all web traffic). Media agency Zenith forecasts even higher: three-quarters of all Internet traffic in 2017 will be generated through mobile access, through smartphones and tablets.

But in this assessment, the type of device should not be confused with the type of access, since mobile devices often operate over Wi-Fi, over fixed networks.

Smartphones currently make up just under half (48%) of mobile devices worldwide. They provide consumers with the opportunity to use rich interactive applications (Rich Interactive Applications, RIA), which ultimately improves the quality of life, gives a tangible socio-economic effect. The WIK study found that a 10% increase in RIA use added about $5.6 trillion (0.33%) to global GDP, which is higher than the economic performance of traditional telecommunications services in a group of 164 countries from 2000 to 2015. Ericsson estimates that by the end of 2016, 3.9 billion smartphones were connected worldwide. GSMAi predicts that there will be about 5.6 billion by 2020.

In terms of mobile telephony, by the end of 2016, according to the GSMA, there were 4.79 billion unique mobile subscribers, and this number will exceed 5 billion this year. By 2020, there will be 5.6 billion unique mobile subscribers globally, which is more than the estimated number of people who have electricity in their homes (5.3 billion), bank accounts (4.5 billion) or running water (3.5 billion).

Mobile telephony is much more widespread than Internet access. Number of subscriptions for cellular communication is 7.7 billion, exceeding the world's population - 7.6 billion; about two-thirds of the world's population has personal access to mobile phone versus 48% with internet access.

At the same time, analysts note a pronounced trend towards convergence of these indicators. Over the past 25 years mobile operators built powerful network infrastructures for voice and digital services. Their full upgrade to 3G and 4G technologies is the most cost-effective way to reach 95% of the world's population with broadband access within five years. The main obstacles to the growth of the number of active users are no longer the availability of network technologies, but rather digital illiteracy, as well as the availability of digital services that are relevant to the community.

In the meantime, the race towards 5G has begun, driven by the ITU standardization process under the IMT-2020 vision and the prospect of global harmonization of millimeter-wave bands for IMT-2020 at the upcoming World Radiocommunication Conference (WRC-2019). A sufficient amount of harmonized spectrum in different frequency bands is a prerequisite for the global availability of mobile broadband.

Investments in the development and modernization of broadband networks

As noted, competition, regulatory intervention, declining average revenue per user (ARPU) and slowing user growth are having a significant impact on operators' revenues and investment opportunities. Despite short-term bursts in revenues (in 2015 they grew by 2.2%), in 2016 revenue growth slowed down significantly.

Since 2010, mobile operators have invested $1.2 trillion in developing broadband networks and increasing their capacity. Global annual capital expenditures, having peaked at $197 billion in 2015, fell 6% in 2016. In the period up to 2020, their further decline is predicted. A particularly strong decline in capital investment, by almost 10%, occurred in emerging markets. GSMAi predicts that this decline will continue in the medium term.

Given the projected decline in operator capital investment over the course of next years alternative solutions are needed. Both the private sector and the public sector play an equally important role here. The state organizes incentive regulation, develops well-thought-out plans and strategies, introduces preferences and benefits, and participates in financing activities that are necessary for the state and society, but do not bring income to operators.

In this aspect, it should be noted that in Russia there is actually no targeted regulation of the development of broadband communications in order to form a single digital space of the country and in the interests of consumers. Combined with “regulatory intervention”, such as the implementation of the “Yarovaya law” and similar ones at the expense of operators, and not the state, as in other countries, this threatens the very possibility of private investment in the network. The inevitable increase in tariffs will not provide the necessary funds due to the inevitable decrease in the affordability of broadband access, the Internet, and applications. - Approx. comp.

Meanwhile, the private sector, operators, are developing new business models, offering new platforms and services, which can increase the pace of innovation, introduce new services and raise revenues, as well as apply cheaper operating models, in particular the sharing of infrastructure (passive and active network elements) and national roaming without government subsidies or investment in its implementation.

Governments and policy makers should consider these sharing models as the preferred approach to expand broadband opportunities, as they can help maintain competition, commercial and technological sustainability. Infrastructure sharing models (including government needs) can cut capital and investment costs by 50-70% while maintaining revenue.

It is important to note here that the terms "mobile" and "fixed" can only refer to access networks, to the last mile. And the basic, supporting, trunk, etc. high-speed telecommunication networks of the next generations (NGN) - the basis of ICT infrastructure and the Internet - are convergent and technologically neutral, i.e. functionally unified regardless of the type of access, operator, services provided, which allows you to integrate both networks and their resources.

Our operators by mutual agreement already practice this integration. However, in the absence of a modern digital national infrastructure based on NGN and plans for its formation, the above effect indicators in the coming years in Russia are unattainable. Therefore, in particular, the introduction of even intra-network roaming will lead to an increase in tariffs for everyone who does not use it. - Approx. comp.

Next generation networks and fixed broadband

The processes of evolution in fixed lines and continuous technological modernization with the transition to modern broadband networks continue. As defined by ITU-T, a next generation network is a packet-switched network in which the service-related functions are independent of underlying communication technologies. On the single platform such a network provides not only communication services, but also access to an unlimited list of content, ICT benefits, and other services that the user chooses.

Traditional copper access networks are being upgraded to G.fast (up to 2 Gbit/s), which is widely practiced in the EU countries. Deloitte (2017) predicts that by 2020 the number of gigabit connections in the world will reach hundreds of millions. Ovum expects about 30 million homes and businesses worldwide to use G.fast.

It should be noted that since 2015, the spread of fiber-optic gigabit access networks has accelerated in the world, in terms of coverage of which Russia is not inferior to the EU countries. For example, the Moscow City Telephone Network, which has 4 million subscribers, is switching to FTTH using GPON technology - “fiber to the apartment”. - Note. comp.

By the fourth quarter of 2016, the total number of fixed broadband subscribers in the world amounted to 855.9 million, which is 10% more than a year earlier (777.5 million). According to Point Topic, the top ten countries in terms of fixed broadband subscribers remained unchanged. In 2016, Russia overtook France in this ranking. In Q1 2016, China surpassed a quarter of a billion fixed broadband subscribers and continues to grow at an impressive rate, adding about 92 million FTTH connections during 2016. Point Topic reports that this increase is almost equivalent to the total number of fixed broadband subscribers in the US.

In parallel with technological modernization, ADSL is being phased out. For example, in November 2016, Swedish fixed and mobile operator Telia Eesti announced plans to phase out ADSL services for about 90,000 of its broadband users by 2020, upgrading subscriber lines to alternative technologies. Approximately half of these customers will migrate to fiber, 40% to VDSL2+ and G.fast, and 10% are expected to use LTE by 2020.

Next generation satellite broadband

Satellite communications are carried out using point-to-multipoint technology and can create broadband coverage of an entire region within a limited frequency range, signal strength and packet delay parameters. New satellite systems surpass traditional ideas about their speed, power and delay. Many operators have recently deployed or plan to deploy systems that can connect 1.5 billion people worldwide.

An effective solution to the problems of broadband access is high-performance satellites in stationary orbits (HTS) - 36 thousand km above the equator. HTS spacecraft generate a large number of very narrow steerable beams. These beams carry strong signals and are electrically isolated from each other so that the same allocated frequency bands can be used multiple times.

For our country, where such spacecraft are already operating, the system is of limited use, since it does not cover the northern regions, and individual VSATs have become too expensive for the mass consumer. - Approx. comp.

Another innovation in the field of satellite technology is broadband communication using non-geostationary satellites (NGSO) in medium altitude circular orbits (MEO) (2-36 thousand km) and low-earth orbit (LEO) vehicles at altitudes of 400-2000 km. To ensure continuous customer service, at least several dozen NGSO satellites and a complex system of their interaction are needed.

Today, the most promising project in this direction is the O3b (OneWeb) system, which provides a total throughput of 192 Gb / s, up to 1.6 Gb / s per beam and a delay of less than 150 ms. The system is designed to provide trunking services, mobile services, fixed broadband access and satellite communications anywhere in the world. OneWeb plans to create a LEO system of 648 satellites, providing download speeds of 25 and 50 Mbps.

The report emphasizes that a combination of different communication technologies is required to form a national digital infrastructure. Fiber optic cable, satellite networks and terrestrial wireless systems are not mutually exclusive or competitive. Only together they form modern national broadband systems.