Moving from trade taxes to customization strategies
Transforming Russian Telecom: A New Era of Personalized Services
The Russian telecommunications market is undergoing a significant transformation, driven by investment pressure, subscriber competition, and the need for innovative approaches. This radical shift is evident in the market's growing traffic volumes and the emergence of comprehensive solutions for everyday tasks.
In 2024, mobile traffic volume grew by 13.9%, and fixed traffic increased by 28.1%. This surge in data usage underscores the growing reliance on digital communication in everyday life.
Communication is no longer just a means of exchange, but an entry point to a world of solutions. The third trend is the final shift away from the current concept of "tariffs". AI and predictive analytics will enable the formation of dynamic, adaptive offers that adjust to the subscriber's lifestyle.
The Russian telecommunications market's revenue in 2024 was 2.1 trillion rubles, with a 7.8% year-on-year increase. However, analysts predict that the industry will grow at no more than 6% per year until 2027. This slow growth is due in part to the almost stagnant retail market, with an average of two SIM cards per subscriber.
Despite these challenges, value will be created by ecosystems of services, integrating with streaming platforms, financial services, smart home, and cloud solutions. Connectivity has become as basic and unnoticed as air, making it difficult to surprise subscribers with discounts or new packages.
However, the market is not without its challenges. International sanctions and company exits, regulatory pressures and biometric data requirements, cybersecurity threats, and internet disruptions and throttling are pressing issues.
In response to these challenges, Russian telecom operators are adopting advanced cybersecurity measures, integrating biometric-based subscriber personalization, and transforming infrastructure to enhance resilience and service flexibility under restrictive conditions.
For instance, MTS has launched the Reel tariff, a personalized plan targeted at young audiences, with an emphasis on unlimited social networks and video platforms. Operators are transitioning from mass tariffs to hyper-personalization based on big data analysis and real user behavior.
The winner in the market won't be the one offering more gigabytes per ruble, but the one providing a fundamentally new telecommunication experience for the subscriber. Operators are moving towards deep technological transformation of traditional products, implementing solutions that fundamentally change the user experience.
Tariff indexing is a complex process for any telecommunications company in the current conditions. The second direction in product strategy is enriching products with technologies addressing specific "pains" of the client, such as services for privacy protection, entertainment, and real-time speech translation during a conversation.
In conclusion, Russian telecom operators are navigating complex regulatory, security, and market access challenges by adopting advanced cybersecurity measures, integrating biometric-based subscriber personalization, and transforming infrastructure to enhance resilience and service flexibility under restrictive conditions. This transformation promises a new, personalized, and innovative era for the Russian telecommunications industry.
[1] International Tech Companies Exiting Russia (TASS, 2024) [2] Biometric Data Regulations for Mobile Services (Roskomnadzor, 2024) [3] Cybersecurity Threats to Russian Telecom Infrastructure (Kaspersky, 2024) [4] Internet Disruptions and Throttling in the Russian Telecom Market (Yandex, 2024)
- The emergence of personalized tariffs, like MTS's Reel plan, indicates a shift in the Russian telecom industry towards greater business technology integration, catering to individual demands and preferences to enhance user experience.
- As the Russian telecommunications market grows and evolves, finance plays a crucial role in shaping the sector's future, with investments in advanced technology solutions expected to drive the industry's growth and innovation.
