Market overview of telecommunications equipment, solutions and services
Despite external pressure, the Russian telecoms market continues to grow dynamically
In today's digital world, telecommunications play a crucial role, connecting people, businesses, and government structures. In recent years, the Russian telecoms market has withstood several serious storms, but despite this it has continued its dynamic development. Below we will tell you about its main indicators and trends.
Main Results
For the last six years, the Russian telecoms market has been showing stable growth. Thus, according to Rosstat's calculations, the turnover of companies operating in this field will reach a record high of RUB 2.6 trillion by the end of 2023. This is almost 10% more than in 2022. The reason for this trend is both the rising cost of services and the growing profitability of a number of promising digital areas.
The mobile communications segment, which accounts for about 60% of all company revenues, has become the engine of growth. However, this segment (along with the Internet and digital television) is at the stage of maturity: in the context of a highly competitive and saturated market, as well as the limitation of the increase in the cost of services, it is unlikely to expect significant growth in this segment in the future. Taking into account the general decline (including a reduction in the number of subscribers) in the telephony segment, the main growth driver of the telecoms market in the coming years will be the area of digital services, including cloud solutions, software development, and cyber security solutions. The leading market players, in particular, Rostelecom and MTS, are recording similar trends.
Trends and growth points in the Russian telecoms market
One of the most serious challenges of the last two years has been to find alternatives to the hardware and software supplied by companies from Europe, Japan, Taiwan and South Korea which have now left the Russian market. Now, the supply of equipment from China and parallel imports have helped to solve this problem, however in the long run import substitution and development of domestic solutions are becoming increasingly important. Undoubtedly, this has, to a certain extent, led to an increase in costs. However, there are also positive factors: the largest players in the telecoms market have entered new segments (e.g., equipment development) that have become vacant due to the withdrawal of foreign companies. For example, this year PJSC Rostelecom not only replaced equipment in its own data processing centres with domestic equipment, but also presented independently developed and manufactured base stations to the general public. In turn, the Unified Register of Domestic Software includes over 200 products and technologies developed by Rostelecom.
In the coming years, we should expect the trend of telecoms market players creating their own ecosystems to cool down. In general, this segment has already reached saturation, since the largest players have already created their own ecosystems, while smaller and new players do not yet have the capacity and resources to create new breakthrough solutions. However, it is becoming more difficult (and, importantly, more expensive) to attract them.
The question that is hotly debated over is whether telecoms and IT companies are competitors or synergy is possible between them. On the one hand, the boundaries between the IT and telecoms markets are gradually blurring. Moreover, there is a tendency when major players of the telecoms market solve IT problems with the help of internal resources (separate divisions within the company or subsidiaries). On the other hand, the involvement of IT market leaders or young and promising companies allows not only to obtain high-quality expertise, but also to acquire image advantages.
An important factor is the significant role of the state in the telecoms market. The authorities not only set the "rules of the game" and regulate it, but are also a major investor and customer. For example, in 2023, the amount of state funding for telecoms infrastructure projects exceeded RUB 426 billion, which is a record high. Among the key projects, it is worth mentioning the digitalisation of education and healthcare, as well as the large-scale Smart City programme.
Why exhibit at ExpoCifra
The development of the Russian telecoms market, as well as the need to find alternatives to the products of defunct brands, dictate the demand for equipment and software. And in today's dynamic world, one of the most effective and fastest ways to establish productive partnerships is to participate in large-scale industry events. This includes the International Exhibition of Information Technologies and Solutions for Digital Transformation ExpoCifra 2025, where a separate section will be dedicated to equipment, solutions and services for the telecoms market. It is worth noting that at the annual international electronics exhibition ExpoElectronica 2024, where the IT and digital solutions section made its debut, 1,348 specialists were interested in telecoms equipment, solutions and services.
If your company provides telecommunication services, is a manufacturer or supplier of various equipment (systems, units, modules, antennas, base stations, etc.), and is ready to offer telecommunication solutions to the market (virtual PBX and IP-telephony, solutions for digitalisation of various processes), then participation in the International Exhibition of Information Technologies and Solutions for Digital Transformation ExpoCifra (15-17 April 2025, Moscow, Crocus Expo IEC) will allow you to find new customers, expand the geography of sales, as well as contribute to the development of your business.
