Rostelecom is a huge aircraft carrier. Rostelecom is a huge aircraft carrier Rostelecom in the telecommunications market

The number of Internet subscribers and users continues to increase today, so the question remains topical: "Which operator to choose?" OJSC Rostelecom is one of the players in the telecommunications market and a major employer. What is this provider? What are the employee reviews of Rostelecom?

About company

The telecommunication services market in our country is developing steadily. OJSC Rostelecom has been an interregional operator since 2006 and operates in several Russian regions. It occupies far from the last positions, but is not included in the "big three" operators. What services does the company provide?

• Local and long-distance telephone communication.
• Interactive television.
• Cellular.

Directions of the company

Rostelecom performs various types of e-government creation and development, ensures the functioning of elections, etc. It is a leader in the telecommunications market for Russian government agencies and corporate users. It occupies a leading position in the provision of Pay TV services (over 8 million users). The company has the largest backbone network in the Russian Federation, with a total length of 500 thousand km. According to international credit ratings, the company has a stable financial position. Revenue for the 1st quarter of 2015 amounted to more than 70 billion rubles, net profit - more than two billion rubles.

Rostelecom as an employer

The company is a major formal employment employer with full social package, stable workplace, white wages without delay. The team in which they work is often noted on the positive side. Feedback from Rostelecom employees makes us pay attention to the company's commercial approach to solving many issues. For example, installation is carried out even with poor line parameters. The priority is to capture the market, fulfillment and overfulfillment of the plan, not personnel. Mainly sellers are recruited into the staff, and other specialists are laid off. Work at Rostelecom, employee reviews of which should be studied before passing an interview, differs depending on the department and region.

Positive feedback from staff about the company

Employees note that the company has changed for the better lately, and a positive development trend is outlined. The few positive reviews from Rostelecom employees reflect the following advantages of the employer:

• work is stable, simple and straightforward, well-organized;
• the opportunity for career growth in a prestigious company;
• acceptable working conditions;
• close-knit team and high;
• increase in salaries and funding after a change of leadership in a number of regions.

Negative feedback from employees about Rostelecom

According to the employees, the old qualified specialists of the company were reduced to 90%. Large layoffs have meant that new and remaining employees are forced to take on a number of responsibilities of those who were laid off, while wages the same level. Rostelecom employees reacted negatively to the personnel policy pursued by the management. Many reviews point out the same shortcomings of this employer.

• Incompetence of the management team.
• Unfavorable socio-psychological climate.
• Bureaucracy and red tape. The software works very badly, before you do something, you need to coordinate your actions with many people. Agreements take a long time, about a month.
• High staff turnover. There is no literate personnel policy... They do not hold back, do not value good specialists.
• Small worthy only for top managers.
• Traditional communications have collapsed. Obsolete equipment, cables, gaskets, etc. Overhaul do not plan. The company is unable to provide high-quality communication even for its employees.
• Fitters buy equipment and pay for gas at their own expense.
• Misinforming job seekers and clients.

Work at Rostelecom, the feedback from employees about which should make the management think about the company's problems, is characterized by high workload and low staff motivation. Many were not satisfied with a 35% bonus, depending on the loyalty of higher management, heavy fines of up to 95%. The head office of the company does not comment on the complaints and complaints of the employees.

Customer reviews of the provider "Rostelecom"

A huge number of reviews have been written about Rostelecom, including both positive and negative ones. Among the advantages of the services provided by the provider, clients highlight:

• favorable conditions and prices for tariffs;
• stable wi-fi;
• in terms of television, the archive and the clear image are noted.

In general, dominated by negative reviews Rostelecom employees and consumers. Predominance negative opinions about this provider can be explained in part by the fact that not finding understanding in the company's support service, a disappointed customer is more willing to express his dissatisfaction. Consumers of Rostelecom's services note a number of shortcomings.

• The quality of lines, maintenance and services is poor.
• There is no service. Irresponsible attitude towards clients.
• Poor support service and technicians.
• Do not handle customer complaints.

What are the customers of Rostelecom unhappy with?

Many customers note a very low Internet speed, often completely inconsistent with those stated in the tariffs, constant departures, interruptions and disconnections of the Internet. The provider "Rostelecom", reviews of which are mostly negative, according to many consumers, misinforms customers. Receipts for payment are sent late, and then a penalty is charged. There are often technical problems with consumer payments.

Rostelecom Contact Center, the reviews of employees and customers about which are very contradictory, also raises a lot of complaints. Consumers note that it is very difficult to get through to technical support, support service workers do not delve into the problem and try to end the conversation as soon as possible, do not answer questions, use the same learned phrases during negotiations, in addition, pick up the tubes at the workplace so that customers do not annoy them with calls.

Clients of the Moscow Region left negative reviews about Rostelecom, as the company did not enter into agreements with payment systems and terminals, which led to the fact that consumers suffered additional expenses and experienced inconvenience when paying for communication services. Unlike other telecom operators, Rostelecom does not activate home telephony services immediately after the payment is made, but only after three days.

Conclusion

The large number of negative reviews about Rostelecom are alarming. Feedback from Rostelecom employees also reflects concerns that the company is falling apart. It is extremely important for the company to take into account the opinions of ordinary employees, since they are the foundation of the organization.

The Russian telecommunications market is developing. The takeover of regional operators and smaller providers by larger corporations will continue in the future. Companies that do not meet modern requirements, cannot withstand competition, will either restructure or disappear from the market.

Main article about the company: Rostelecom

2019

Growth of revenue by 5%, net profit - by 10%

In February 2020, Rostelecom presented its audited financial results. The company's revenue in 2019 reached 337.42 billion rubles, an increase of 5% compared to the previous year.

The growth was largely facilitated by the provision of digital services, according to Rostelecom. Annual revenues from broadband Internet access services (BBA) increased to 83.87 billion rubles from 80.04 billion rubles a year earlier. Television services brought Rostelecom 37.13 billion rubles, surpassing the result of 34.46 billion rubles a year ago.

In the fixed telephony market in 2019, the operator earned 61.74 billion rubles. In 2018, revenue was higher and measured 69.99 billion rubles. The company earned 49.8 billion rubles from cloud and VAS services, while in 2018 these revenues were equal to 36.9 billion rubles.

The number of the operator's subscribers increased in almost all sectors. The growth in the number of Internet users was 2% (13.2 million by the end of 2019), Pay TV users - by 3% (of which the number of Interactive TV subscribers increased by 6% to 5.6 million), virtual operator subscribers - 41% (up to 1.7 million). At the same time, the number of local telephone subscribers continues to decline: it fell by 10% and by the end of 2019 amounted to 15.7 million.

The average revenue per subscriber of broadband Internet services reached 402 rubles, an increase of 2%. The Pay TV segment saw an increase of 2% to 255 rubles.

Among the areas that showed the greatest growth - information security (growth - 68%), data center services (50%), “smart city” projects (50%). In absolute terms, the revenue from them amounted to 3.7 billion, 10.8 billion and 34 billion rubles, Rostelecom reported to TAdviser. President of the company Mikhail Oseevsky in a conversation with TAdviser noted that the direction of DLP solutions used by a number of large customers, including Sberbank, Russian Railways and Rosneft, showed especially good results in the information security business.

Rostelecom finished 2019 with a net profit of 16.47 billion rubles, which is 10% more than a year ago. Net profit amounted to 4.9% of revenue against 4.7% in 2018.

The good results of 2019 were made possible by the efforts of all blocks of customer segments on the path of digital transformation and promotion of modern digital services. At the same time, the segment of corporate and government clients, on whose sustainable development we are betting, showed the best double-digit growth - 13% year-on-year, - said Vladimir Kiriyenko, First Vice President of Rostelecom.

Earlier, at the end of February, Tadviser wrote about the preliminary, unaudited financial results that Mikhail Oseevsky presented at a meeting of the Federation Council. They did not differ much from the audited ones: the announced revenue was more than 335 billion rubles, the profit was about 16 billion rubles. The company's OIBDA reached about 106 billion rubles, an increase of about 5% over the year.

Mikhail Oseevsky spoke at the 475th sitting of the Federation Council on February 26 (photo - Federation Council)

The volume of the investment program of Rostelecom in 2019 amounted to 100 billion rubles, of which 70 billion are the company's own funds and 30 billion are from the federal budget, Oseevsky cited data.

The President of Rostelecom recalled at a meeting of the Federation Council that the company had recently acquired Tele2. Taking this into account, Rostelecom by the end of 2020 will be the largest digital company in Russia with revenues of over RUB 500 billion, Oseevsky said.

Speaking to the senators, Oseevsky noted that the company is rapidly transforming: from an operator it is turning into a provider of digital services for people, business and the state. The main direction for Rostelecom now is the provision of services to citizens. First of all, it is broadband Internet access (BBA). The company invests a lot in this direction, says Mikhail Oseevsky. According to his estimates, the company occupies 41% of the broadband access market.

And with the acquisition of Tele 2, the company will be able to provide services cellular communication, which will complement its range of services for citizens, counts in "Rostelecom".

Rostelecom is also expanding the range of services for its citizens through solutions and services for a smart home. The company installs about 20 thousand sets of such devices every month.

The second in terms of volume is the provision of services to legal entities. In total, Rostelecom has more than 600 thousand clients here, including the largest russian companies, but a special priority, according to Oseevsky, is medium and small business, for which there are special solutions.

Further in terms of volume, projects for the state and partners in the operator business follow in equal shares. According to preliminary estimates according to management reporting, interaction with telecom operators accounts for approximately 15% of Rostelecom's business.

Oseevsky stressed that one of the growth drivers for Rostelecom is participation in the Digital Economy national program. The company plays an "exceptional role" in three areas: information infrastructure, where the government appointed Rostelecom a competence center, public administration and information security.

Among the recent infrastructure projects, Mikhail Oseevsky brought the laying of submarine cables to Sakhalin, Kamchatka, Magadan, the Kuril Islands, and now residents of these remote territories have the opportunity to use all the same products and services as other residents of the country. And in 2021 Rostelecom will start laying a cable to Chukotka.

Among other projects within the framework of the information infrastructure of the "Digital Economy" is the elimination of the digital inequality, which involves the provision of Internet access to small settlements.

Data centers are an important area of \u200b\u200bdigital infrastructure, the president of Rostelecom noted: they are the brain of the digital economy. Rostelecom is the largest operator of such services, says Oseevsky: more than 25% of all information in the country is stored in Rostelecom's data centers.

The company is implementing a large-scale program for the construction of data centers throughout the country, and in the near future plans to complete the construction of data centers in the capitals of federal districts, and then proceed to their creation in the capitals of other federal subjects. Data today should be as close to users as possible, Oseevsky emphasized.

As for the information security area, Mikhail Oseevsky calls Rostelecom the largest operator providing commercial services to the state and business in providing information security. Among his clients are a number of federal agencies, the largest Russian companies. In 2019, more than 1 million attacks against clients and Rostelecom's own infrastructure were repelled. Four information security centers were created for round-the-clock monitoring. This is the fastest growing area of \u200b\u200bthe company, said the president of Rostelecom.

Investments in the Russian OS "Aurora" depreciated by a third

On June 19, 2019 it became known that Rostelecom wrote off one third of its investments in the Russian mobile operating system Aurora. More details.

2018: Growth of revenue to 320 billion rubles

Other areas that showed the greatest growth were cloud services and value-added services, which grew by 42%. Various data center services constitute a significant part of this area. Thus, revenue from Virtual Data Center / IaaS services increased by 40%.

The main priority of the company, he specified, will be the development of access in areas of mass housing development. At the end of 2018, it is planned to complete the work on laying the underwater cable at Far East and connect the Kuril Islands to the Internet.

• Revenue increased by 3% to RUB 305.3 billion. compared to 12 months of 2016;
• OIBDA increased by RUB 0.085 billion. up to 96.9 billion rubles. compared to 12 months of 2016;
• OIBDA margin was 31.7% compared to 32.5% in 12M 2016;
• Net profit increased by 15% to RUB 14.05 billion. compared to 12 months of 2016;
• Capital investments amounted to 60.8 billion rubles. (19.9% \u200b\u200bof revenue), having decreased by 2% compared to the same period in 2016 (61.9 billion rubles and 20.8% of revenue for 12 months of 2016);
• FCF grew by 53% to RUB 20.4 billion. compared to 12 months of 2016, having improved by 7.1 billion rubles.

Credit rating AA (RU), Outlook Stable

Kai-Uwe Melhorn, Senior Vice President and cFO: “We believe that the assignment of this rating opens up additional opportunities for the company to attract public debt financing, including for the optimization of our debt portfolio”.

2016

The Rostelecom Board of Directors approved in May 2017 the agenda for the annual general meeting of shareholders and made recommendations on dividends for 2016. At the meeting of shareholders, it was recommended to allocate 15 billion rubles for the payment of dividends on common and preferred shares, which is 113% of free cash flow and 122% of the company's net profit.

Dividends are proposed to be paid on type A preferred shares - in the amount of RUR 5.39 per share, on ordinary shares - at RUR 5.39 per share.

The Board of Directors also determined the dates for compiling the list of persons entitled to participate in the general meeting of shareholders and to receive dividends - May 25 and July 7, 2017, respectively. The general meeting of shareholders of the company will take place on June 19.

"The level of dividends proposed by the board of directors for approval by the general meeting of shareholders corresponds to the actual results achieved by the company in reporting period... This year, the company proposes to significantly increase the share of distributed free cash flow, thereby demonstrating commitment to the implementation of the basic principles of our dividend policy, namely, to direct our shareholder more than 3/4 of free cash flow, but in any case at least 45 billion rubles over 3 years, while not increasing the debt burden. We believe that the proposed level of 5.39 rubles per share allows maintaining a high dividend yield and is generally within the framework of the company's current policy, "said Rostelecom President Mikhail Oseevsky.

Revenue 297 billion rubles

• Revenue increased by 91 million rubles. up to 297.4 billion rubles;
• OIBDA decreased by 4% to RUB 96.8 billion;
• OIBDA margin was 32.5% versus 33.9%;
• Net profit decreased by 15% to RUB 12.2 billion;
• Capital expenditures amounted to RUB 61.9 billion. (20.8% of revenue) having decreased by 1% compared to the same period last year (62.7 billion rubles and 21.1% of revenue for 12 months of 2015);
• FCF amounted to 13.3 billion rubles. against 22.0 billion rubles.

• The share of the Digital segment in the revenue was 44%;
• The share of Rostelecom in new connections at the end of 2016 in the Pay TV market was about 50% and in the broadband access market - over 50%;
• Continuously high growth rates of the broadband subscriber base optical technologies (+ 17%) and IPTV (+ 24%);
• The B2B / G segment showed revenue growth of 2.5% yoy.

For 12 months of 2016, operating expenses excluding depreciation increased by 2% compared to the same period in 2015 and amounted to 202.0 billion rubles. The following factors influenced the dynamics:

• an increase of 5% (by 2.3 billion rubles) in expenses for services of telecom operators, including due to an increase in costs for content caused by an increase in the number of Pay TV subscribers;
• 11% decrease (by 1.7 billion rubles) in other operating income, mainly related to the project to eliminate digital inequality; excluding reimbursement under the ESP project, the growth of other operating income was 94%;
• more than twofold growth (by 2.4 billion rubles) of profit from disposal of fixed assets, mainly due to the closure of the transaction to create a real estate sub-fund in the form of a joint venture with Sberbank;
• significant recovery of the allowance for doubtful debts in 2015;
• a 1% decrease (by RUB 0.7 billion) in personnel costs, mainly due to staff optimization.

2015: Decrease of revenue, growth of profit

2014: Decrease in net profit by 16% to 29.5 billion rub

The net profit of the Russian operator Rostelecom in 2014 fell by 16.4%, from 35.3 billion to 29.5 billion rubles. This is evidenced by the data of reporting under RAS (Russian standards accounting), reported in March 2015 to RBC.

In 2014, Rostelecom spent 46.1 billion rubles to pay off long-term liabilities, reducing their volume to 138.9 billion rubles. Instead, short-term liabilities increased by 29.7 billion rubles, to 53.7 billion rubles.

The company's revenue increased to 290.6 billion rubles, which is 2.3% higher than last year.

2013: Decrease of all basic indicators

The company predicted that in 2013 the net profit could reach 25 billion rubles, in 2014 - 40 billion rubles. Svyazinvest's merger with Rostelecom will result in revenue growth of 1% in 2013 and 3% in 2014. Without the effect of Svyazinvest's merger, Rostelecom forecast revenues for 2013 at RUB 327 bln, OIBDA as forecasted of the company in 2013 will amount to 120 billion rubles, and by 2016 it will increase to 150-160 billion rubles. By 2016, the company planned to increase revenue by 7%, to 407 billion rubles.

When Rostelecom published its financial results for 2013 in March 2014, it turned out that the company's revenue did not meet the forecast and fell by 2% to RUB 325.7 billion, OIBDA (operating profit before interest on loans and depreciation expenses ) fell 6% to RUB 113 billion. Operating profit decreased by 17% to RUB 45 billion. Net profit fell even more - by 27% to RUB 24 billion.

In the IV quarter of 2013, the company's net profit decreased by 62% compared to the same period in 2012, amounting to 1 billion rubles. The company explains this by one-off write-offs made due to the revaluation of the option to repurchase Rostelecom of 2.7% of its own shares from Deutsche Bank and RDIF, as well as the tax effect caused by the creation of reserves for doubtful debts of Sky Link (cellular subsidiary Rostelecom). Capital investments for the year decreased by 27% to 68.5 billion rubles.

Of the types of businesses, the worst were in the areas of long-distance communications and leasing of channels. Revenue from each of these areas in 2013 decreased by 17% and amounted to 17.1 billion rubles. and 9.5 billion rubles. respectively. The revenues from the zone communication continue to fall: they decreased by 13% to 17 billion rubles.

By 5% - up to 38.9 billion rubles. - revenue from mobile communication... At the same time, the net loss from cellular communications in 2013 increased by almost 7 times 2.5 billion rubles. Operating loss from this direction amounted to RUB 366 million. (a year earlier, operating profit amounted to 1.35 billion rubles). At this time, Rostelecom is in the process of transferring its cellular business to a joint venture with Tele2.

Local telephony remains the most profitable business of Rostelecom - RUB 87.5 billion (down 2%). The fastest growing segment is Pay TV: growth was 29%, revenue reached 11.7 billion rubles.

Revenue from the transmission of inter-operator traffic increased by 13% to 24.5 billion rubles, from broadband Internet access - by 9% to 56 billion rubles. Cloud services grew by 10% to RUB 23 billion.

If we consider revenues by type of client, then revenues from government customers decreased by 16% to 45 billion rubles, from corporate clients, on the contrary, increased by 4% to 74 billion rubles. Income from individuals and other telecom operators remained practically unchanged, amounting, respectively, to 165 billion rubles. and 40 billion rubles.

The number of Rostelecom's fixed-line telephone subscribers continues to fall: over the year it fell by 6% to 26.5 million. The number of broadband Internet users, on the contrary, is growing: over the year it increased by 12% to 10.6 million. 62% are connected via xDSL technologies, 38% - via FTTB. The number of cellular subscribers increased by 9% to 14.8 million (the growth was due to the Ural and Siberian regions).

The number of Pay TV subscribers increased by 12% to 7.5 million, of which 71% are cable TV users, 29% are IPTV users.

2012: Growth of revenue by 7% to 321 billion rub

The Group's revenue in 2012 amounted to RUB 321.3 billion. and grew by 7% compared to 2011. The structure of revenue changed in favor of growing segments, including, among others, mobile communications, broadband access, Pay TV. The OIBDA margin was 36.9%, reflecting the effects of the active development of the mobile business in the regions where 3G + networks are being built in Q4 2012, an increase in the share of fast-growing, but less profitable than traditional, revenue segments, the creation of reserves for employee compensation within 20 % optimization of administrative personnel, planned for 2013. Net profit for 2012 amounted to 35.2 billion rubles. Net debt as of December 31, 2012 amounted to 203.1 billion rubles. In 2012, the total debt of OJSC Rostelecom increased by 24%, amounting to 214.4 billion rubles.

2011

Results of the year: voice telephony - 58% of revenues

Rostelecom's 2011 revenue, determined in accordance with Russian Accounting Standards (RAS), amounted to RUB 296 billion. Rostelecom's net profit in 2011 amounted to 46.1 billion rubles, consolidated revenue amounted to 296 billion rubles.

Revenue structure:

• voice telephone services - 58% of the company's total revenues - over 124 billion rubles.
• data transmission services - 23% of revenue (over RUB 49 billion).
• cellular services - 5.1% (about 10 billion rubles)
• provision of communication channels for use - 4.5% (approximately 9 billion rubles).
• services of television and radio broadcasting, satellite and radio communications - 1.5% (just over 3 billion rubles).

Rostelecom's revenues from e-government more than doubled in 2011 - by 132%. In the structure of its revenue, this direction is less than 1%.

Grows and operating profitability - in 2010 it was around 5%. Rostelecom expects that the profitability of this direction will be at the level of its other businesses, says the operator's representative Kira Kiryukhina.

In terms of profitability, e-government is comparable to international and intercity communication, a source in the company knows. For projects of this type, 20% is the usual profitability, says Sergey Matsotsky, CEO of the IBS system integrator. And to the founder of the system integrator "Lanit" Georgy Gens, such profitability under the state contract for an IT project "seems like a fairy tale": the competition has intensified now and the margin has decreased as a result. Apparently, the operator part brings the main profit in this contract to Rostelecom, he assumes.

However, it is not clear how Rostelecom was able to single out from its costs those that relate specifically to contracts for e-government, the employee of another integrator is surprised and considers this figure "paper".

9 months: Net profit growth by 2%

Rostelecom's net profit under IFRS for 9 months of 2011 increased by 2% to RUB 29.397 billion. from 28.885 billion rubles. compared to the same period in 2010. Revenue increased by 7% to RUB 217.458 billion. from 203.287 billion rubles. OIBDA increased by 5% to RUB 85.517 billion. from RUB 81.525 billion, the OIBDA margin was 39.3%.

First half of the year: growth of net profit by 6 times

According to the information retrieval system DataCapital, Rostelecom's RAS net profit in the first half of 2011 increased 6.23 times to RUB 13.939 billion. from 2.233 billion rubles. for the same period in 2010. Revenue increased 2.8 times to RUB 79.875 billion. from 28.467 billion rubles, profit from sales - 4.91 times to 15.763 billion rubles. from 3.209 billion rubles.

2010

Reaching the second place in terms of revenue in the communications industry at the end of the year

Unaudited consolidated revenue of the merged Rostelecom under IFRS in 2010 amounted to 275.7 billion rubles. ($ 9.05 billion at the Central Bank exchange rate as of December 31, 2010).

Net profit - 40.8 billion rubles. ($ 1.34 billion).

This is the first reporting of the company after the seven interregional telecommunications companies (RTOs) and Dagsvyazinform, which were previously controlled by Svyazinvest, joined on April 1, 2011. These reports will become the basis for comparing the results that will be shown in 2011 by a single company, a representative of Rostelecom explained.

In terms of revenue for 2010, the merged Rostelecom outstripped Megafon, which in 2010 earned RUB 215.5 billion. And if we take into account only Russian operations, then Rostelecom was ahead of Vimpelcom, losing only to MTS, whose Russian revenue amounted to 286.4 billion rubles. Nevertheless, the combined company's OIBDA margin turned out to be worse than that of the Big Three operators - 40.2%. For Russian operations of MTS this figure was 43.4%, for Megafon - 45.4%, and for VimpelCom - 46.2%. Compared to the Big Three operators, the share of mobile business Rostelecom has low margins, while the marginality of the fixed-line business is much lower, explains Troika Dialog analyst Evgeny Golosnoy. For a company that is primarily engaged in fixed-line communications, 40.2% is a good indicator of profitability, he said. Moreover, the tariffs for some of Rostelecom's services are regulated by the state, recalls Golosnaya.

In 2010, the merged Rostelecom received 32 billion rubles from the mobile business. revenue, accounting for only 11.6% of all company revenues. Operators of the Big Three, on the other hand, still earn most of their revenues from mobile communications: MTS in Russia has this share of 82.7%, VimpelCom - 83.6%, and Megafon - 96.5 %.

Financial indicators for the third quarter

Revenue amounted to 15.8 billion rubles, including revenues from new and additional serviceswhich increased by 16% to 5.8 billion rubles (37% of revenue compared to 32% in the third quarter of 2009);

Adjusted OIBDA (net of accrued non-cash expenses under the long-term incentive program for employees in the amount of RUB 461 million) was RUB 3.2 billion; OIBDA margin 20.3%;

The net profit, adjusted for non-cash accrual of expenses under the long-term incentive program for employees, amounted to 1.4 billion rubles.

Capital expenditures amounted to 2.8 billion rubles. (17.5% of revenue)

Key financial indicators for the nine months of 2010:

Revenue amounted to 45.8 billion rubles, including revenues from new and additional services, which increased by 10% to 16.5 billion rubles (36% of revenue compared to 31% in the first nine months of 2009);

Adjusted OIBDA (net of accrued non-cash expenses under the long-term incentive program for employees in the amount of RUB 461 million) amounted to RUB 9.0 billion; OIBDA margin increased to 19.7%;

The net profit, adjusted for accrual of non-cash expenses under the long-term incentive program for employees, amounted to 3.3 billion rubles.

Capital investments amounted to 7.7 billion rubles. (16.9% of revenue)

The company's capitalization as of November 2010 is 120.5 billion rubles.

Q1: Sharp drop in revenue

In the first quarter of 2010, Rostelecom's revenue under RAS fell by 8.2% compared to January-March 2009 to RUB 14.1 billion, the operator said. This is the largest drop in at least five years, says Ilya Fedotov, an analyst at Veles Capital. The reason is the decline in income from its traditional long-distance communication (in 2009 it provided 71.4% of Rostelecom's revenue). The traffic goes to the networks of mobile operators, the employee of the press service of Rostelecom admits.

Until 2006, all operators were required to send long distance and international calls through the Rostelecom network, but then other operators began to obtain licenses for the right to provide these services on their own. Now there are about 20 of them, including MTS, VimpelCom and Megafon.

At first, the expansion of the Big Three was constrained by the lack of trunk canals. They had to be rented from Rostelecom, MTT, Transtelecom, and calls were expensive. But in 2008, VimpelCom acquired Golden Telecom with a powerful cable network, and MTS and Megafon began to build their networks. As a result, mobile long distance and calls abroad have significantly dropped in price.

2008: Revenue 66 billion, net profit - 7 billion rubles

• Revenue - 66.6 billion rubles. (2008, IFRS)
• Net profit - 7 billion rubles.

Mikhail Oseevsky - on the first results of his work at the head of the company, the development of the industry and the mining of cryptocurrency

Rostelecom President Mikhail Oseevsky, who headed the company in March 2017, in an interview with RBC spoke about the operator's role in the Digital Economy, the future of eSports, and why increasing the share in Tele2 is not a priority

Mikhail Oseevsky (Photo: Arseniy Neskhodimov for RBC)

In early March, early terminated the powers of Sergei Kalugin, who headed Rostelecom since 2013, and approved the top manager of VTB Mikhail Oseevsky as president. Analysts have unexpectedly replaced the head of the company - there were no obvious complaints about Kalugin. According to two sources of RBC in the market, Oseevsky's candidacy for the post of head of Rostelecom was lobbied by the VTB group, which intended to sell its stake in their joint venture - T2 RTK Holding (provides mobile services under the Tele2 brand). Sergey Kalugin, in turn, opposed such a deal.

The top manager spoke about who invited Mikhail Oseevsky to the post of head of Rostelecom, the vision of Tele2's development and the new strategy of the state operator in an interview with RBC.

"I knew it was a very large company."

- When and from whom did you receive an invitation to head Rostelecom?

- The final decision on the appointment of the head of Rostelecom is made by the chairman of the government, signing the directive. Actually, the offer came from him in the winter of 2017, a few weeks before the appointment.

- How did you take it? What introductory notes did they give you about Rostelecom? How did they coincide with what you later saw in the company?

- At that time, work was already underway on the creation of the Digital Economy program. It became obvious that Rostelecom will play a key role in its implementation. I suppose that with this in mind, the government's decision was made.

While working at VTB, I got an idea of \u200b\u200bRostelecom, since it was a client of the bank. First of all, about financial performance: I knew that it was a very large company, with large revenues, high margins, profitable, securities which are traded both in Russia and abroad.

- What did you manage to do in six months as president?

- As anyone who comes to the management of a company, I focused on setting up the team and getting immersed in key business processes. A new board has been formed, which should play a more active role in the governance structure. I believe that the company performed well in the second quarter - revenue has grown significantly, profits have almost doubled, and good margins have been ensured (over 32% by OIBDA). The company is growing in almost all major business segments. We pay a lot of attention to optimizing the management model, strengthening management not only at the level of the corporate center, but also at the branches. All of this is a basic platform for moving forward.

- These actions are a continuation of the policy and strategy of the previous command or a givenalready by youvector of development?

- A company like Rostelecom is a huge aircraft carrier. He cannot turn sharply to the right and then to the left - you can turn over and drown. The strategy, which was adopted at the end of 2013, assumed an increase in the share of modern digital products, it is absolutely correct, we are moving in this direction, and even at a faster pace than expected. But over the past years, a lot has happened - the external conditions have changed, new ones have appeared and strengthened. digital services and technology. Therefore, today we are actively working to develop a new five-year strategy, including taking into account the approved federal program for the digital economy.

What does Rostelecom do

The public joint-stock company of long-distance and international telecommunications "Rostelecom" was registered on September 23, 1993 (then - in the form of an OJSC). The company provides local telephony services, broadband Internet access and cloud storage of data, pay TV, services based on its own backbone communication network. Owns data processing centers (DPC), is an operator of the gosuslugi.ru portal, a contractor for programs to eliminate the "digital divide", Internet connection medical institutions and other government projects. Rostelecom owns 45% of T2 RTK Holding (the remaining 55% belong to a consortium of investors within the VTB Group, Alexey Mordashov's Invintel B.V. and Yuri Kovalchuk's Rossiya Bank).

Rostelecom's revenue in the second quarter was RUB 75.2 billion, and its net profit was RUB 2.8 billion. As of December 31, 2016, the largest shareholders of the company were the state represented by the Federal Property Management Agency (owned 48.71% of ordinary shares), Rostelecom's subsidiary Mobitel (15.06%) and Vnesheconombank (4.29%). Rostelecom shares are traded on Moskovskaya stock exchange, ADRs apply to trading platform OTCQX OTC Markets Group OTC trading systems, not listed on the London, Frankfurt and other foreign stock exchanges.

"It is necessary to remove from our name the postscript" long-distance and international telecommunications "

- When do you plan to adopt a new strategy, what should it contain?

“We are targeting the end of this year.” The strategy will be based on a clear financial model with our forecast results. This is very important for a public company like Rostelecom. In general, the main vector remains - this is the evolutionary development of Rostelecom into a provider of digital services. We believe that it is necessary to transform into a company that will provide smart digital services for end customers - people, companies and the state.

I think it is also necessary to take a symbolic step: to remove from our name the term “long distance and international telecommunications”. The company has long outgrown this definition. IN last years Rostelecom has been actively growing in such segments as broadband Internet access, pay TV, data centers and "clouds" (cloud services. - RBK). These segments are helping to successfully offset the drop in telephony revenues. Compared to 2012, last year revenue from telephone services decreased by one third, its contribution to total revenue is already less than 30%. At the same time, there is no decrease in total revenue - thanks to the digital segment, which accounted for 47% of revenue in the second quarter of 2017. Digital revenues have grown by more than 10% year-on-year.

What is important to keep in mind: as a result, part of what we are doing today, Internet access, for example, will become an impersonal housing and communal service - like water or energy supply. Only, unlike water and electricity, our traffic is unlimited - it is not paid by the meter. We want to be a company that sells as many end products as possible - high-margin services and services. Not a method of delivery of a service, or, say, not only a method of delivery, but also the product itself - for example, television and video content. Rostelecom is developing the most advanced pay TV technology - IPTV (controlling, by the way, 74% of the market), which just uses the broadband access network to deliver TV and video content. Another promising area is “smart home” for household management and security, other intelligent services for home and family.

If we talk about the B2B / B2G segment, then here we see the perspective in the “everything you need as a service” model. When we offer a client a comprehensive solution to his communication and IT tasks on a turnkey basis, including ultra-high-speed communication channels, equipment and IT infrastructure, data centers and cloud software, cyber protection, technical support for all this. Thus, the client is freed from non-core tasks and can concentrate on his business.

Photo: Sergey Karpukhin / Reuters

- Will the indicators stipulated by the previous strategy (calculated for the period from 2015 to 2020) be achieved? For example, by 2020 the company was supposed to occupy 50% of the broadband access (BBA) market in Russia.

- We see that the Internet penetration in the country is already at a high level, the sales of this product are clearly slowing down. Nevertheless, Rostelecom is growing faster than the market, more than half of new broadband subscribers choose our company. There are still many different players on the market, and there is a consolidation in progress. I think we will not give up this goal. And in what horizon we will go to it - we'll see. We see certain prospects for M&A transactions (mergers and acquisitions, "mergers and acquisitions". - RBK), we are constantly looking at various companies.

"Rostelecom does not need to gain control of Tele2 in order to realize synergies."

- RBC sources said that you were invited to Rostelecom to increase your stake in T2 RTK Holding. At your first press conference, you said that Rostelecom is analyzing the feasibility of increasing its stake, but is not considering a full buyout. On the latter, the companies are focused on finding synergies in joint business development. There is no deal and will not be?

- Increasing the share is currently not our priority. Together with our Tele2 partners, we are focused on improving our operating and financial results. As we see today, we manage to organize interaction in such a way that there are results. When I said that we were analyzing the need to gain control in Tele2, I had in mind the question: will this help to achieve the desired indicators in terms of efficiency? Today, the management of Rostelecom and Tele2 is working closely and harmoniously. Tele2 has completely switched to using Rostelecom's communication channels, we are discussing the possibility of maintaining Tele2 infrastructure by our specialists. This will enable the two companies to cut costs and become more efficient.

Rostelecom successfully started as a virtual mobile operator on the Tele2 network: 500 thousand subscribers in eight months of operation - a good result. Soon in retail network Tele2 will start selling Rostelecom's service packages. We continue to move towards the provision of 4Play services (mobile services, fixed telephony, Internet access and Pay TV as a single package. - RBK). Let's start selling in a limited number of regions to test. The global vector of companies' development is the provision of complex services turnkey client. It shouldn't matter in what way (wired or wireless) the client gets what he needs - communication, information and emotions.

In the first half of 2018, Tele2 headquarters will move to office center Comcity in Rumyantsevo, where Rostelecom divisions and our subsidiaries are already operating. This is also important and necessary for the formation of common teams. We pay a lot of attention to marketing and the formation of product lines. In particular, Rostelecom has a strong position in the TV and video content consolidation market; we want to use this potential in providing services for Tele2 clients. We are discussing a number of other joint products.

Today Rostelecom does not need to gain control over Tele2 in order to realize synergy. We see that Tele2, as a company owned by different shareholders, is developing successfully. In general, I can say that Tele2's results for the first half of 2017 are very good.

Photo: Casper Hedberg / Bloomberg

- But due to the fact that they are not disclosed, there is a suspicion that something is wrong with them.

- It was decided not to disclose [the indicators] for a number of reasons. But take my word for it that the operating and financial results are noticeably better than what we expected.

- Did I understand correctly that due to the fact that Tele2 improved its financial results, the issue of reducing the share of individual shareholders of the company has ceased to be relevant?

- This should be asked from other shareholders.

- But you must know their position ...

- Today, all major shareholders of Tele2 are focused on improving the company's efficiency. We, VTB and Bank Rossiya are actively working together on the board of directors on how to help the development of Tele2. There is no need to fuss, we are big, serious players who make key decisions based on strategic interests, and not on the current situation.

- When will Tele2 be able to recoup investments in building a network in Moscow? Many analysts doubted that the exit to metropolitan market in the fall of 2015, it was a smart move for the company - due to the high competition in Moscow and the high costs of such expansion.

- It is incorrect to count separately. Any company, including Rostelecom, operates with different margins and profitability in different markets and in different regions. It depends on the infrastructure, the moment of entry, competition. It is impossible not to be in Moscow. This is the country's key market. If a company does not operate in Moscow, consider that it does not exist on the global Russian market.

- Due to the fact that Rostelecom intends to focus on the end customer, will a 45% stake in Tele2 be sufficient for the company? Tele2 has a large subscriber base ...

- The future business model is partnership. We do not plan to produce all the products that we are going to offer to our customers alone. It seems to me that the idea that only after gaining control can you achieve a result is outdated.

"None of the mobile operators alone can create 5G infrastructure"

- You said that the new strategy of Rostelecom will have a connection with the state program Digital Economy, which was announced by the government in July. How will this be expressed?

- First of all, this is the development of infrastructure. The creation of fifth generation (5G) networks is very important. This is a separate large area that will be reflected in our strategy. We believe that Rostelecom can act as an infrastructure operator and partner for the entire industry. None of the cellular operators alone can create 5G infrastructure - it is very expensive.

- Are you talking about transport communication networks?

- Not only, we are talking about the entire access infrastructure: both communication channels and base stations, which will need to be installed ten times more than in the networks of previous generations. We believe that the most effective solution will create a common company using optical networks (fiber-optic communication lines. - RBK) Rostelecom.

- Have you already discussed this idea with someone other than Tele2?

- We are not only starting to service communication channels and Tele2 equipment, but also other operators, including the Big Three. As an outsourcing or infrastructure company, we are consistently gaining capacity and we believe that this is a good basis to gradually move to deeper cooperation, to the creation of a common infrastructure.

- Do the regulators and the government agree to create such a single company?

- Business has not yet reached concrete proposals and solutions. But it is very important that there is a dialogue between market participants, everyone understands the current problems.

Photo: Andrey Rudakov / Bloomberg

- What do you plan to do in addition to infrastructure under the Digital Economy program?

- We will participate in the development of plans and policies for all five areas of the program - regulation, personnel, infrastructure, research platforms and end-to-end technologies, cybersecurity. For example, Rostelecom has created a special Cybersecurity and Protection Center, which is deservedly considered one of the strongest in the country.

We consider the creation of applied digital platforms for various sectors of the economy very promising. Digital technology platforms are created in the interests of individual industries, because each of them has its own specifics. It is intelligent software that accumulates a huge array of industry data and provides convenient tools for processing it. The platform helps to extract and process "raw" information into a system of industry knowledge. Today, even a simple field can and should become a source of digital data. On the field, you can install sensors that automatically collect information about humidity and precipitation, temperature, sunny days, soil. This data is collected on the industry platform, systematized, applications begin to process it, machine intelligence is connected - as a result, recommendations are issued on watering, fertilizing, the optimal start of planting and collection. Everything is automated and objective, the influence of the human factor on the collection and analysis of data is excluded. The result of the work of the platform and applications on it is a good harvest and an effective business.

In digital platforms, the centers of competence in the program are Rosatom and Rostec, but we work with them in partnership. We have chosen four priority sectors for ourselves: oil and gas production, energy, mechanical engineering and agriculture... Each industry has its own specifics; the agro-industrial complex and oil production require different sensors, a special approach to data analysis. The platform approach is also applicable to social services. Recently, we have been paying great attention to the development of projects in the field of "smart" health care. The transition to digital medical records and their accumulation in a secure centralized electronic archive of medical information opens up great prospects. In the future, the analysis of constantly updated information will help predict the need for medicines and medical personnel, and develop preventive plans. Remote access to the medical history (of course, with the patient's permission) will make it easier to provide the right care wherever he is.

- Recently, everyone started talking about blockchain technology, about the extraction (mining) of cryptocurrency. Are you considering the possibility of mining cryptocurrency in your data centers?

- Let's split the question. We believe that blockchain as a distributed secure storage system undoubtedly has a future. Russia must move in this direction. What is the future of the cryptocurrency - we'll see. I am still very restrained, because this is a question, in general, of faith. Everyone played candy wrappers in childhood. The candy wrappers "Bear in the North" or "Red Poppy" had different "values". More precisely, the children believed that it was a value. It's the same with cryptocurrency. So far, this is a very risky story.

- But you could mine cryptocurrency on your infrastructure and exchange it for real money.

- We will not deal with this ourselves, but companies have the opportunity to rent capacities from us in the data center and "mine". If this kind of activity does not contradict the current legislation - please.

- Was it difficult for you as a new person in telecom to immerse yourself in technological aspects?

- I was lucky. For the first time in the last 25 years of my life, I started working for a company that would benefit from the engineering education I received. For quite a long period (eight years) I was engaged in quantum physics, laser physics: many things from the point of view of information transfer are clear to me. Much, of course, is new. Especially in the part that concerns modern Internet and other high technologies. But it is also an opportunity to gain new knowledge. Indeed, over the past six months I have discovered a lot of new things for myself.

Overall, the industry is changing very rapidly in terms of technology and products. But the industry is not growing - the dynamics of income from communication services is in the region of zero. It's not very good. Today Russia is one of the leaders in terms of the availability of telecom services - both mobile and home Internet. For us and our colleagues in the industry, this is the main challenge (challenge. - RBK) - how to move forward in conditions of rather low ARPU (average bill of one subscriber. - RBK). There is only one direction - new products, services and offers. The client is ready to pay for comfort, convenience in solving everyday problems, this is on the one hand. On the other hand, he is ready to pay for emotions. For example, for a good movie or TV series - please, you can find it on our IPTV. For a cool online game - please, we are developing special products for gamers. In general, I think that esports will actively develop. We are monitoring the development of virtual reality and other technologies that may make the delivery of emotions even more vibrant and high-tech in the future.

Photo: Arseniy Neskhodimov for RBC

- You have own business?

- For a long time I have kept all my money in deposits in state banks. Having gone a long way of various experiments, having led the exchange, I understood what risks exist and how much time should be spent on eliminating them. Therefore, it was clearly defined that the hired manager high level there is no need to enter into any conflicts of interest and bother with assessing any risks that are not related to what he does.

Six facts about Mikhail Oseevsky

1983 - graduated from the Kalinin Leningrad Polytechnic Institute with a degree in electrical engineering.

1986-1993 - worked at the D.V. Efremov Research Institute of Electrophysical Equipment (NIIEFA).

1993-1999 - was the deputy manager and then the manager of the St. Petersburg Currency Exchange.

2003-2011 - Vice Governor of St. Petersburg, in 2011-2012 - Deputy Minister of Economic Development of Russia.

From July 2012 to March 2017, he was Deputy President - Chairman of the Management Board of VTB Bank.

"Served more than 10 million pay TV subscribers, according to the Telecom Daily report. Compared to Q1, its subscriber base has grown by about 100,000 subscribers. Thus " Rostelecom "Became the first Russian wireline operator to gain more than 10 million Pay TV subscribers, says Denis Kuskov, CEO of Telecom Daily.

« Rostelecom »Is the second largest Russian Pay TV operator in terms of the number of subscribers. In the first place - "National satellite company"(Tricolor TV): according to Telecom Daily, its subscriber base reached 10 million subscribers in the IV quarter of 2013, and at the end of June the operator served more than 12.2 million subscribers.

Rostelecom spokesman Valery Kostarev did not comment on Telecom Daily's calculations. The operator will sum up the results of the second quarter on August 2, he says. But it is expected that by the end of April-June, the total number of Pay TV subscribers will exceed 10 million, Kostarev notes.

One of the factors that increased interest in Rostelecom's pay TV, Kostarev calls the World Cup, the official partner of which the company became in the spring. Under the World Championship " Rostelecom »Made several special offers, says Kostarev.

Both in the II quarter of 2018 and in the previous quarters " Rostelecom »Shows the highest rates organic growth, notes Kuskov. He is almost the only one among the large Russian operators that is still building networks in the regions, he says. According to him, new viewers are, as a rule, residents of small towns who have connected Rostelecom's Internet television (IPTV). Previously, high-quality TV, with the exception of satellite, was often unavailable to them - and together with the IPTV of Rostelecom, they also receive the Internet, explains Kuskov.

In general, over the quarter, the number of Pay TV subscribers in Russia grew by less than 0.5% (growth over the year - just under 2%). The market is growing extremely slowly, since 75% of Russian households are already connected to Pay TV - we are talking about oversaturation, Kuskov said. In addition, the circle of those who do not watch TV is growing: users are increasingly reading news on the Internet and watching online videos - this audience is constantly growing, he says.

The presence of Rostelecom in the pay TV market is very noticeable, it is a very strong player, said Alkhas Mirzabekov, general director of Iskratelecom. For Rostelecom, television is one of the key servicesdriving business growth, he says. According to him, " Rostelecom »Attracts new users by building communication lines in remote settlements, where often there was no connection at all. In the same time " Rostelecom "Builds networks under co-investment agreements in large development projects," he says.

Rostelecom has high quality television services, interesting content, balanced tariff policy, Mirzabekov lists. One of the advantages of IPTV from Rostelecom is that a user can get a set-top box for viewing it practically free of charge, for rent, while in most cases one has to pay for equipment for watching satellite TV.

INDUSTRIAL TRENDS

In the global telecommunications market, including Russia, there is a decrease in the role of traditional services and a rapid growth in the popularity of ecosystem and platform solutions. The rapid development of technologies and the proliferation of solutions in the areas of the Internet of Things play a critical role in the transformation of the industry, artificial intelligence and the use of big data.

Consumer behavior is also changing: there is a rapid development of visual communication channels, an increase in the use of social networks and increasing the value of personalized solutions.

With the growth of the IT services market significantly outstripping the traditional services market, companies are focusing on new solutions outside of “core products” to increase customer loyalty and increase sales. An important aspect of market development is also the need for investments for the implementation of large-scale infrastructure projects, on which the industry will rely in the implementation of innovative technologies.

The growth of the telecommunications market in Russia in 2018 amounted to 3.4%, which was the best result over the past five years. Market volume reached 1.7 trillion rubles ... The telecommunications market in Russia is consolidated by four main players, Rostelecom maintains a leading position in many segments.

The main factor behind the market growth was the growing revenue for the second year in a row. mobile transmission data. Strong industry performance in 2018 continues to be supported by the operators' initiative last year to move away from price competition and increase the offer of value-added services. The broadband and pay TV markets also showed stable positive dynamics. The volume of fixed telephony services and some inter-operator services continued to decline, but the rate of decline slowed down. More than two thirds of the market, as in previous years, is formed by the client segment of individuals.

The Russian telecommunications market is divided among several major players with an aggregate market share of about 80%: MTS, MegaFon, Rostelecom, VimpelCom and Tele2 Russia.

Structure of the Russian telecommunications market by client segments, 2018,% Source: TMT Consulting.

Revenues of the Russian telecommunications market, 2015–2023, billion rubles Source: TMT Consulting.

The penetration of broadband Internet access in the segment of individuals in 2018 approached 60%. The total subscriber base reached 34.9 million due to the connection of new housing stock and small towns. The industry's revenue growth from access to broadband access in 2018 amounted to 3.2%, the operators' revenue reached 192.3 billion rubles. An important factor in the market growth in 2018 was the increase in the average subscriber bill, which confirms the trend towards rationalizing competition and the subscriber's willingness to pay more for stable and high-speed Internet.

The structure of the broadband access market in the B2C segment by operators' income, 2018,% Source: TMT Consulting.

BBA market structure in the B2B segment by operator revenues, 2018,% Source: TMT Consulting.

Market share of Rostelecom by operators' income, broadband access, 2016-2018,%

Segment	2016	2017	2018
B2C	38	40	41
B2B	35	35	37

Source: TMT Consulting.

Number of broadband access subscribers, 2015–2023, million Source: TMT Consulting.

The growth in the number of Pay TV subscribers in 2018 slowed down, but the segment showed positive dynamics, increasing by 2.6% to 43.9 million subscribers; the service penetration rate exceeded 77%. The segment's revenue also increased by 10% to RUB 92.6 billion. The average bill per subscriber was 177 rubles excluding VAT, which is 10 rubles more than in 2017. The cable TV segment continues to hold the leading position in the market in terms of revenue compared to IPTV and satellite TV, but its share is gradually declining.

Market structure by income of Pay TV operators, 2018,% Source: TMT Consulting.

Revenue structure by Pay TV technologies, 2018,% Source: TMT Consulting.

Market share of Rostelecom by operators' income, Pay TV, 2016-2018,%

Source: TMT Consulting.

Number of Pay TV subscribers, 2015–2023, million Source: TMT Consulting.

The market of virtual mobile operators (MVNO) has been demonstrating steady growth over the past two years and remains one of the most promising areas in the telecommunications market. According to a study by TMT Consulting, at the end of 2018, the number of subscribers of virtual mobile operators amounted to 7 million, which is 18% more than a year earlier. Rostelecom leads the MVNO market in the B2B segment with a 56% market share Source: data from TMT Consulting, 2019..

The MVNO market is being developed by companies from related industries. In 2018, Sberbank launched its own brand of the virtual mobile operator Sbermobile. Sberbank became the second bank after Tinkoff Bank to introduce a virtual telecom operator to the market in 2017.

Number of MVNO subscribers in the B2B segment, 2016–2018, million Source: TMT Consulting.

MVNO market structure by number of subscribers, 2018,% Source: TMT Consulting.

Fixed-line subscribers, 2015–2023, million Source: TMT Consulting.

In 2018, the decline in fixed telephony in the market continued. Service penetration fell by 3 pp to 34.5%, while the number of subscribers decreased by 1.9 million to 26.3 million Source: data from TMT Consulting, 2019.... PJSC Rostelecom remains the leader in the fixed-line communications market in all segments.

Fixed-line telephony market structure by operators, 2018,% Source: TMT Consulting.

The market continues to show consistently high growth rates. An important role in its development is played by the growing offer of exclusive content by online cinemas, increasing user loyalty to legal OTT VoD services, and the entry into the market of such major Internet companies as Yandex and Rambler.

According to TMT Consulting estimates, the volume of the online cinema market in 2018 grew by 48% and reached 11.2 billion rubles. The fastest growing was the income received from the paid model - the share of proceeds from it increased to 69%. At the end of the year, the market volume grew by 75% and amounted to 7.85 billion rubles. Advertising revenues brought in 3.52 billion rubles, an increase of 10% over the year.

According to forecasts, by 2023 the volume of the OTT video services market will be about 36.0 billion rubles, with revenues from paid services accounting for 86% of the revenue. The average market growth rate (GAGR) in the next 5 years will be 26%.

OTT market development forecast by revenue structure, 2014–2023, Source: data from TMT Consulting, 2019. RUB bln Source: TMT Consulting.

In 2018, the Russian Internet of Things (IoT) market reached a volume of about 251.6 billion rubles Source: IDC Russia data.... The segment is one of the fastest growing in the market with projected growth rates of about 18% per year until 2022. In Russia, the development in the field of the industrial Internet is mainly based on the integration of IT with the main activities of companies, optimization of business processes and government initiatives to digitalize the economy.

Manufacturing and transportation are the leading industries for investment in the Industrial Internet. The main areas of application of the technology at the moment are considered to be quality control of manufactured products and optimization of energy consumption.

The main trends in the development of the data center market include increasing the capacity of the currently operating data centers and the commissioning of new data centers. In addition, the development of cloud services is predicted. Rostelecom ranks first in Russia with 5.9 thousand racks in commercial data centers located in 13 cities.

The Russian market is influenced by the growing needs of citizens and companies in storing and processing data, as well as work within the framework of the state program "Digital Economy". In addition, a service model is gaining popularity, implying a transition to outsourcing of its own IT infrastructure.

The market for commercial data center racks is expected to grow at least 9-10% CAGR over the next three years Source: iKS-Consulting data, 2019.... Thus, it is expected that by 2021 about 56 thousand data center racks will be in operation in Russia.

Forecast for the development of data processing and storage centers in Russia, 2016–2022. Source: data from TMT Consulting, 2019.

Shares of the market leaders of commercial data storage and processing centers by the number of racks, 2018, Source: data from TMT Consulting, 2018. %

The confident growth of the information security market will continue as the volume of data stored in information systems increases, as well as the growth of data transmission in Smart Home projects, automatic systems management technical process and the Internet of Things. In the period 2018-2022, the forecast CAGR for the market will be about 9%