The Booming Russian Residential Broadband Market

RNCOS:

The broadband market in Russia is replete with rewarding opportunities for investors, with demand for broadband connections far exceeding the numbers achievable by the service providers. The fragmented market offers enormous opportunities for prospective players and investors to reap benefits from the burgeoning broadband market in Russia.

There exists a great potential for growth in the budding broadband market in Russia. Going by statistics, globally Russia ranks among the top twenty markets in terms of the number of broadband connections and among the top ten countries as per the number of Internet users. In 2005 alone, approximately 5.5 mn broadband connections, both residential and official.

The Russian broadband market is in an upbeat mood and the market size will expand, achieving the milestone of $360mn in the year 2006.

As per global broadband market figures for 2005, Russia features as an important emergent market accounting for 43% of new residential lines installed and a significant increase of 11%( from 23% to 34%) in the share of this region in the global subscriber base. Going by even the most conservative estimates, by the end of 2006, the number of residential broadband lines in Russia will leapfrog to a whopping 2.4mn, an increase of more than 80%.

Residential broadband access has generated significant interest as a prospective revenue-driving segment for the sector. In 2005, the total number of residential lines exceeded 1.1mn and the market has been expanding consistently since then.

Russian Broadband Market Forecast (2005-2012) Russian Broadband Market Forecast (2005-2012) Publ 20060629