FEDERAL ANTIMONOPOLY SERVICE
Transition of the market of telephony services
from natural monopoly to competition
Moscow, 2015
Stages of analysis
November 2011. Analyzing the market of telephone services–
analyze substitutability of landline and cellular communications
services
In many cases landline telephony (voice) can be replaced with mobile
wireless communications services in consumption.
September 2013. Analyze the trends in more detail, compare prices
and tariff structure.
A decision on the expediency of pilot projects on deregulating the
services of landline telephony.
March 2014 – March 2015. Pilot projects to deregulate price
regulation in 49 constituent territories of the Russian Federation
and evaluating the results
Stages of analyses
The Government Telecommunications Commission is satisfied with
the results of the pilot projects.
Consumers of telephony services show comparable attitudes to
consumption of landline and cellular communications services
and assess the costs of telephony services similarly.
May 2015 – August 2015. Analyze the level of competition
development on the market of telephony services in view of
cellular communications.
September 2015. Draft proposals on regulating natural
monopolies that provide telephony services.
Результаты анализа
The share of all communications services in the total consumer price
index is around 3%.
The share of the costs of all communications services in the costs
structure of the population in general is going down
The shares of the costs of cellular communications services and Internetaccess services are reducing with increased consumption of such
services
The share of expenses for local telephony is reducing against decreased
consumption
Consumption structure
Most telephone connections take place within the boundaries of the
same subjects (provinces) of the Russian Federation, of which 80%
go via cellular networks.
Consumption structure
83% long-distance telephone connections are made via cellular
networks, and 17% - via landline networks, including calls from
landline subscribers to cellular subscribers (10%).
Service availability
We analyzed availability of services in 230,048 settlements with
147,401,155 residents
Service availability for the residents of Russia
Can get only
landline services
2%
Can receive only
cellular services
3%
Can get both
landline and cellular
services
94%
Cannot receive
telephony services
1%
Overall, availability of
mobile wireless
communications
services for the
population is higher
than landline
telephony.
No correlation between
availability of landline
services and the scope
of consumption
Shares of operators on the telephony market
Long-distance telephony services in the
Russian Federation
Telephony services in a subject of the
Russian Federation
Category
percentage
Category
percentage
Category
percentage
Category
percentage
None of the landline operators can
exercise a decisive influence upon
the market
None of the landline operators can
unilaterally exercise a decisive
influence upon the market.
Results and proposals
None of the landline operators can unilaterally exercise a
decisive influence upon the telephony market within the
boundaries of a subject of the Russian Federation and
the market of long-distance telephony.
Operators provide services on the telephony market via
both landline networks and cellular networks
The revealed facts form the basis for technologically
neutral regulation
Non-discriminatory conditions should be ensured for
market participants.
Non-discriminatory conditions of economic activities
of communications operators
The most important aspect of developing competition on the market –
reducing market entry barriers
- Technological neutrality of regulating interaction between providers
– the issues of connection and traffic transfer
- Build-up a similar tariff structure
- Ensure non-discriminatory access to the infrastructure
- Inform consumers
Ensure efficient competition on the common market of
communications services
Обеспечение эффективной конкуренции на
едином рынке услуг связи
Thank you for your attention!