Telecommunications in Russia


Telecommunications in Russia is highly developed and have evolved from the early days of the telegraph to modern fibre broadband and high-speed 4G networks. Due to the enormous size of the country, the country leads in the number of TV broadcast stations and repeaters. The foundation for liberalization of broadcasting was laid by the decree signed by the President of the USSR in 1990. Currently, telecommunication is mainly regulated through the Federal Law "On Communications" and the Federal Law "On Mass Media"
Telecommunications in Russia has undergone significant changes since the 1980s, radio was a major new technology in the 1920s. Soviet authorities realized that the amateur radio was highly individualistic and encouraged private initiative. Criminal penalties were imposed but the working solution was to avoid broadcasting over the air. Instead radio programs were transmitted by copper wire, using a hub and spoke system, to loudspeakers in approved listening stations, such as the "Red" corner of a factory. This resulted in thousands of companies licensed to offer communication services today. There were few channels in the Soviet time, but in the past two decades many new state-run and private-owned radio stations and TV channels appeared. The Soviet-time "Ministry of communications of the RSFSR" was through 1990s transformed to "Ministry for communications and informatization" and in 2004 it was renamed to "Ministry of information technologies and communications ", and since 2008 Ministry of Communications and Mass Media.
Censorship and the issue of media freedom in Russia have been main themes since the era of the telegraph. Russia is served by an extensive system of automatic telephone exchanges connected by modern networks of fiber-optic cable, coaxial cable, microwave radio relay, and a domestic satellite system; cellular telephone service is widely available, expanding rapidly, and includes roaming service to foreign countries. Fiber to the x infrastructure has been expanded rapidly in recent years, principally by regional players including Southern Telecom Company, SibirTelecom, ER Telecom and Golden Telecom. Collectively, these players are having a significant impact of fiber broadband in regional areas, and are enabling operators to take advantage of consumer demand for faster access and bundled services. National security considerations have also imposed temporary restrictions on the telecommunications industry. International travelers may even be unable to access roaming data services for an entire 24 hours. Long-distance communication is restricted to specific locations.

Early history

"Networking" can be traced to the spread of mail and journalism in Russia, and information transfer by technical means came to Russia with the telegraph and radio, besides, a 1837 sci-fi novel Year 4338, by the 19th-century Russian philosopher Vladimir Odoevsky, contains predictions such as "friends' houses are connected by means of magnetic telegraphs that allow people who live far from each other to talk to each other" and "household journals" "having replaced regular correspondence" with "information about the hosts’ good or bad health, family news, various thoughts and comments, small inventions, as well as invitations".
Computing systems became known in the USSR by the 1950s. Starting from 1952, works were held in the Moscow-based Institute of Precision Mechanics and Computer Engineering on automated missile defense system which used a "computer network" which calculated radar data on test missiles through central machine called M-40 and was interchanging information with smaller remote terminals about 100—200 kilometers distant. The scientists used several locations in the USSR for their works, the largest was a massive test range to the West from Lake Balkhash. In the meantime amateur radio users all over USSR were conducting "P2P" connections with their comrades worldwide using data codes. Later, a massive "automated data network" called Express was launched in 1972 to serve needs of Russian Railways.
In 1975, the IT and telecommunications exhibition SVIAZ was launched and has since grown to become the largest such gathering in Eastern Europe and Russia. It is part of the Russian Week of High Technologies and is held yearly in Moscow in the month of April. From the early 1980s the All Union Scientific Research Institute for Applied Computerized Systems was working to implement data connections over the X.25 telephone protocol. A test Soviet connection to Austria in 1982 existed, in 1982 and 1983 there were series of "world computer conferences" at VNIIPAS initiated by the U. N. where USSR was represented by a team of scientists from many Soviet Republics headed by biochemist Anatole Klyosov; the other participating countries were UK, USA, Canada, Sweden, FRG, GDR, Italy, Finland, Philippines, Guatemala, Japan, Thailand, Luxembourg, Denmark, Brazil and New Zealand.
Also, in 1983 the San Francisco Moscow Teleport project was started by VNIIPAS and an American team which included George Soros. It resulted in the creation in the latter 80s of the data transfer operator SovAm ''Teleport. Meanwhile, on 1 April 1984, a Fool's Day hoax about "Kremlin computer" Kremvax was made in English-speaking Usenet. There are reports of spontaneous Internet connections "from home" through X.25 in the USSR in as early as 1988. In 1990, Skylink GlasNet'' non-profit initiative by the US-based Association for Progressive Communications sponsored Internet usage in several educational projects in the USSR.

1998 financial crisis

When the Russian economy's collapse came about in August 1998, the market shrank drastically, where cellular operators MTS GSM, Beeline, North West GSM and Skylink were squeezed between low traffic and huge foreign currency denominated credits and telecommunications equipment bills. In 1998, MTS GSM, Beeline, North West GSM and Skylink prepaid subscriptions were made at a loss and infrastructure investments fell. NMT450 operator Moscow Cellular communications was hardest hit due to its about 50% corporate users. The 1998 crisis also caused many regional operators tariff and payment problems with accumulated debt to vendors; large debts were restructured and foreign investors lost out.

2000s

In November 2013 President Putin instructed Dmitry Medvedev's Cabinet to provide "modern communication services" to rural settlements throughout Russia with a population of 250 to 500 people, by Rostelecom at the expense of the provision of universal service. The document does not specify what is meant by "modern communication services", but sources close to the Ministry of Communications and the state operator explain its intention of connecting villages to the wired internet. The budget comes among others, from the Universal Service Fund.

Regulation

The Ministry of Communications and Mass Media is responsible for establishing and enforcing state policy in the sphere of electronic and postal communications, for promulgating the development and introduction of new information and communication technologies, and for coordinating the work of other state agencies in this area. Legislative oversight is exercised mainly through the State Duma Committee for mass media. The Committee develops mass media-related draft laws, and provides expert analysis of laws submitted by other Duma committees regarding their compliance with current media law.

Universal Service Fund

Universal Service Fund is a fund to finance socially important projects, for example, providing payphones in remote settlements. It consists of the contributions of all Russian operators of 1.2% of revenue. These funds are the Federal Communications Agency distributes between 21 universal operator. These operators money comes to the budget, and Rossvâz receives from the budget for compensation and still these amounts roughly coincided, employee profile departments. But universal operators recently complained that they themselves lack the money to compensate for losses in the implementation of social projects.
In February 2014, Russian President Vladimir Putin signed amendments to the federal law "On Communications", which set Rostelecom a single operator of universal communication services. The company must commit itself to support the existing infrastructure of Universal Service, including payphones and access points on the Internet. In addition to these duties, a single operator will also fight the digital divide by providing broadband at speeds of at least 10 Mbit / s settlements up to 250 people.

Landline telephony

Telephones – main lines in use: 32.277 million
Telephones – mobile cellular: 229.126 million
The telephone system employs an extensive system of modern network elements such as digital telephone exchanges, mobile switching centres, media gateways and signalling gateways at the core, interconnected by a wide variety of transmission systems using fibre-optics or Microwave radio relay networks. The access network, which connects the subscriber to the core, is highly diversified with different copper-pair, optic-fibre and wireless technologies.; cellular services, both analog and digital, are available in many areas. In the rural areas, the telephone services are still outdated, inadequate, and low density.
The Tsarist government of Russia issued its first decree on the development of urban telephone networks in 1881 and the first telephone exchanges in the Empire opened the following year. Initially, telephone exchanges were granted to private developers as concessions in the major cities, but in 1884 the government began to construct the first of its own exchanges and subsequently suspended the award of new concessions. Intercity telephone communications grew very slowly, with only a dozen lines in place by the start of the 20th century, most serving Moscow-Saint Petersburg traffic. After 1900, when the initial concessions had expired, the government eased control over private concessionaires and a burst of new construction took place. Included in the expansion during this period was the slow growth of exchanges built and operated by rural Zemstva, which were treated essentially as private concessionaires by the Imperial government.
Telephones played a significant role during the upheavals of 1917. In February, according to the last tsarist Chief of Police, 'neither the military authorities nor the mutineers thought of occupying the Telephone Exchange'; consequently it continued to function, serving both sides, until the operators finally left their
positions amidst the growing confusion. In early July, however, the Provisional Government, fearing a Bolshevik coup, reportedly ordered the central telephone exchange to boycott calls requested by Bolsheviks.
In 1918, when the Soviet government moved to Moscow and war conditions were producing extreme shortages, Sovnarkom ordered a reduction of 50% in the volume of telephone communications in the new capital, to ensure that official needs of the new government would be served. The primary consequence of this decree for individuals was the 'communalisation' of telephones in private houses and flats. According to the decree, restrictions were focused on the 'parasitic stratum' of society, in the interest of the 'working population'. With the exception of personal phones belonging to high government officials, doctors and midwives, telephones in private flats were placed at the disposal of 'house committees', to be made available for 'general use' free of charge. Houses without telephones were entitled to free use of the communal phone of a neighbouring house; the decree further ordered the immediate installation of at least 150 telephones in public squares, particularly in outlying regions.
One year later Sovnarkom nationalized all telephone systems in the Russian Republic-including all intercity, urban, concessionary and zemstvo exchangesand assigned their administration and operation to the People's Commissariat for Posts and Telegraphs of the RSFSR. Beginning with the nationalization of telephones in 1919, Soviet policy exhibited two main characteristics: telephones increasingly became instruments for the bureaucracy and bureaucrats, and telephones in general were accorded a low investment priority. In March 1920, for instance, government institutions were exempted from the telephone tariff, receiving the right to use the telephone without payment, albeit for sharply restricted periods.
Until the end of 1991, the sole fixed-line telephone operator in the country was the Ministry of Communications of the USSR. The state possessed all telecommunications structure and access networks. In 1994, the investment communication company was established by the Presidential Decree No.1989 dated 10 October 1994 “On the specific features of the state management of the electric communication network for public use in Russian Federation”. The authorised capital of OJSC “Sviazinvest” was formed by the consolidation of federal shares of joint stock companies acting in the area of electric communications and established during the privatisation of the state enterprises for electric communications. The seven regional incumbents which make up Svyazinvest, majority-owned by the government, in early 2011 merged with the key subsidiary Rostelecom. The move created an integrated company based on Rostelecom which will be better placed to exploit economies of scale in coming years.
Cross-country digital trunk lines run from Saint Petersburg to Vladivostok, and from Moscow to Novorossiysk.
Liberalization of the long-distance communication market is another market driver. In January 2006, Russia passed a new law in relation to long-distance telecommunications, which partially broke up the monopolization that Rostelecom had been enjoying in the toll market. The law now allows other carriers to operate toll services. Currently, there are about 32 active companies in this space, including Interregional TransitTelekom, Golden Telecom, TransTelekom and Synterra Media. share of fixed-line business of Rostelecom's main competitors varied in 2012 from 6% to 19%. Still, At the beginning of the 2010s, Rostelecom is de facto a monopoly local telephony provider to households in Russia, except for few regions, where incumbents were not part of Svyazinvest holding after the privatization in the early 1990s.
The substitution of long-distance fixed-line voice services by mobile and IP traffic sped up after 2008, when mobile operators shifted to the fixed-line segment and simultaneously increased investments into own trunk network infrastructure to support, rapid 3G traffic growth. In February 2014 Megafon, SkyLink, through its subsidiary NetByNet purchased Tele-MIG Besides a company founded in 2003 which provides fixed telephony, IP-telephony and data transmission in Yamalo-Nenets Autonomous Okrug.
Russian regulation stipulates that new players must build their own networks. The growth of traffic between Europe and Asia is an additional opportunity; more than 6,000 km of international communication cables were built during the first nine months of 2007, representing a 48.5% increase on 2006, according to the Russian Ministry of Communication and Mass Media.
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Number of subscribers 11.121.298.345.854.735.889.732.367.665.765.923.445.728.721.525.925.424.223.223.423.323.123.523.623.823.923.735.536.138.540.143.945.245.545.444.944.243.1