TELECOMMUNICATIONS INDUSTRY - Invest in Russia · 19 3.2 TOP-10 TELECOMMUNICATIONS COMPANIES IN RUSSIA 2011-2013, by revenue, RUB bln Source: CNews Analytics, 2013 1 MTS (Cellular

TELECOMMUNICATIONS INDUSTRY:FACTS AND FIGURES

2014

ABOUT THE RUSSIAN DIRECT INVESTMENT FUND

The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.

RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.

RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.

RUSSIA IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY

I

6 WWW.INVESTINRUSSIA.COM


RUSSIA’S RANKING IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY2013

1.1

Sources: ITU: ITC Facts and Figures, 2013; Ericsson; Comscore

№3BY NUMBER OF INTERNET-VIDEO USER BASE

№19% increase in subscribers in 201355% level of Pay-TV saturation

IN EUROPEBY PAY-TV SUBSCRIBER BASE №1

166% saturation level by number of SIM cards110% by active subscribers

GLOBALLYBY CELLULAR SERVICE SATURATION

№1Over 27 mln subscribers in 2013. 49% saturation level (60-80% in big cities and over 50% in cities with populations under 500,000)

IN EUROPEBY NUMBER OF BROADBAND INTERNET USERS №1IN EUROPE

GLOBALLY

after USA and Japan

WWW.RDIF.RU 7

1.2 CELLULAR SERVICE IN RUSSIA AND GLOBALLY2009-2013, number of contracts per 100 people

2010 2011 2012 2013

Russia 160.1 142.1 145.3 152.9165.5

Europe 116.8 117.9 119.6 122.8 115.0

China 55.3 72.0 80.8 88.7 63.2

USA 88.6 94.4 96.0 95.5 91.3

2009

Source: ITU



BROADBAND ACCESS (BBA) SATURATION LEVEL IN RUSSIA AND GLOBALLY2013, %

1.3

Source: ITU

In Russia Globally

49% 39%

WWW.RDIF.RU 9

Source: ITU

2010 2011 2012 2013

8.98 12.14 14.46 16.6210.93

22.1 24.8 25.7 26.6 23.6

7.69 11.4 12.72 13.69.29

25.3 27.4 28.4 28.526.5 2009

1.4 FIXED BROADBAND INTERNET SUBSCRIBERS IN RUSSIA AND GLOBALLY

2009-2013, per 100 households

Russia

Europe

China

USA



RUSSIAN INTERNET USER BASE IS RANKED FIRST IN EUROPE AND SIXTH IN THE WORLDas of February 2014, mln unique visitors

1.5

Source: Comscore, Digital future in focus, 2014

India

GermanyUSA

354.6

66.8

194.7 52.6

Brazil 68

Russia

Japan

China

80.173

WWW.RDIF.RU 11

Russia

Europe

China

USA

Source: ITU

2010 2011 2012 20132009

1.6 INTERNET USERS IN RUSSIA AND GLOBALLY2009-2013, % of the population

6343 49 6229

7366 69 7163

4634 38 4229

8472 70 7971

RUSSIAN TELECOMMUNICATIONS INDUSTRY: CURRENT ISSUES AND TRENDS

II


RUSSIAN TELECOMMUNICATIONS INDUSTRY: CURRENT ISSUES AND TRENDS

2.1

Source: CNews Analytics, 2013

RUSSIAN TELECOMMUNICATIONS MARKET STRUCTURE2013, by segment, %

Landline 11%

BBA 10%

Pay-TV 3%

Other 10%

Postal service 8%

Cellular service 58%

WWW.RDIF.RU 15

RUSSIAN TELECOMMUNICATIONS MARKET2009-2013, RUB bln

2.2

Revenue growth rates of the telecommunications market in Russia

2009-2013 and forecast up to 2018, by segment, %

Russian telecommunications market2009-2013, RUB bln

Market, total

Pay-TV

Broadband access

Cellular service

17

4

7

5

2

12

9

6

CAGR, 2014-2018, est СAGR, 2009-2013


2010 2011 2012 20132009

CAGR 6.96%

1,249

1,3491,441

1,635

1,543

TELECOMMUNICATIONS INDUSTRY IN RUSSIA: LEADING COMPANIES

III



A HIGH LEVEL OF CONSOLIDATION IN THE RUSSIAN TELECOMMUNICATIONS MARKET

3.1

“Big Four” share in the Russian telecommunications industry2013, by revenue, %

80% of the Russian telecommunications market is controlled by “the big four” (Rostelecom, MTS, VimpelCom and Megafon), which have presence in all key industry segments.


90Long-distance and international

calls market

38Pay-TV market

78Landline market

89Cellular market Broadband market

58

WWW.RDIF.RU 19

3.2 TOP-10 TELECOMMUNICATIONS COMPANIES IN RUSSIA

2011-2013, by revenue, RUB bln


1 MTS (Cellular service)

2 Rostelecom (Cellular service)

3 Megafon (Cellular service)

4 VimpelCom (Cellular service)

5 Tele2 (Cellular service)

6 TransTeleCom (Landline service)

7 ER-Telecom (Internet, cable TV)

8 Multiregional Transit Telecom (Landline service)

9 Akado (Internet, cable TV)

10 NTV-Plus (Cable TV)

311.9

214.6

242.6

266

-

24.8

9.7

10.8

10.3

-

378.2

332.4

272.3

280.3

59.5

27.1

13.9

11.7

11.2

9.1

398.4

325.7

297.2

289.4

65.3

27.4

19

12.9

12.6

9.4

127.7

151.7

122.5

108.7

109.7*

110.4

195.8

119.4

122.3

103.2*

201120122013Company 2013/ 2011, %

*2013/2012



LARGEST SUPPLIERS OF INFORMATION TECHNOLOGY FOR TELECOM OPERATORS2011-2013, by industry projects revenue, RUB bln

3.3


1 NVision Group

2 Technoserv

3 ITG

4 Compulink

5 RRC

6 Asteros

7 Satel

8 Peter-Service

13.7

17.7

5.2

-

6.5

4.1

2.1

3.0

31.2

18.1

8.5

9.9

8.6

4.7

4.7

3.6

21.5

17.7

7.6

7.4

6.1

4.7

4.7

3.2

156.9

100.1

146.1

74.7*

93.8

114.6

223.8

106.6

201120122013Company 2013/2011, %

*2013/2012

WWW.RDIF.RU 21


GROWTH LEADERS IN THE TELECOMMUNICATIONS SECTOR

2013, by revenue, RUB bln

3.4

1.6

0.5

13.9

2.4

1.1

6.3

0.9

2.9

2.4

0.7

19

3.3

1.5

8.1

1.1

3.4

150.5

146.0

136.8

135

131.9

128.5

118.6

115.2

1 MUS Energetiki (EESTelecom)(Moscow)

2 Mango Telecom (Moscow)

3 ER-Telecom (Perm Krai)

4 Gazprom Space Systems (Moscow region)

5 Obit (St. Petersburg)

6 Tricolor TV (St. Petersburg)

7 Telecomnefteproduct (Moscow)

8 Enforta (Moscow)

20122013Company 2013/2012, %


20122013Company 2013/2012, %Компания


3.5

Source: J’son & Partners Consulting

1 Rostelecom

2 ER-Telecom

3 VimpelCom

4 MTS

5 TTK

8,543

2,449

2,376

2,205

921

9,824

2,732

2,298

2,264

1,209

2013 г.

115

112

97

103

131

RUSSIAN BROADBAND MARKET: TOP 5 OPERATORS BY NUMBER OF BBA SUBSCRIBERS2013, thousand subscribers

WWW.RDIF.RU 23

20122013Company 2013/2012, %Компания

Source: J’son & Partners Consulting

3.6 TOP 5 COMPANIES BY PAY-TV SUBSCRIBER BASE GROWTH

2011-2013, mln households

1 Tricolor TV

2 Rostelecom

3 ER-Telecom

4 MTS

5 TTK

8.9

5.25

2.35

2.85

1.05

10.1

5.23

2.49

2.46

1.75

113.4

99.6

105.9

86.3

166.6


NOTES

WWW.RDIF.RU 25

NOTES


RDIF PRESENTS

PLATFORMINVEST IN RUSSIA

INVESTIN RUSSIA

WWW.RDIF.RU 27

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WHY RUSSIA

TOP RUSSIA

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WHERE TO INVEST

KNOWLEDGE HUB & NEWS

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TELECOMMUNICATIONS INDUSTRY - Invest in Russia · 19 3.2 TOP-10 TELECOMMUNICATIONS COMPANIES IN RUSSIA 2011-2013, by revenue, RUB bln Source: CNews Analytics, 2013 1 MTS (Cellular