Russian telecommunications market – moderate forecasts for 2011

The value of the Russian telecommunications services market will increase 5% this year. Forecasts for 2011 are only slightly better and rather cautious. The overall performance of the Russian economy will continue to play an important role for the country’s telecoms industry.
In recent years, the Russian telecommunications market has demonstrated strong growth, driven by the country’s continuing strong economic performance. Until 2009, Russia experienced more than ten years of GDP growth, which equalled 7% per annum on average. In 2009 with the changing environment on the external markets, Russian GDP dropped by 7.9%. The slowdown in the purchasing power growth of the Russian population was evident even in 2008. While in 2007 real disposable incomes increased by 12.1%, in 2008 the growth amounted to only 4% and in 2009 this indicator remained almost at the level of the previous year. What is more, income levels vary considerably depending on the region.

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