Rostelecom: Russia's Leading Integrated Digital Services Provider
PJSC Rostelecom stands as the largest integrated provider of digital services and products in Russia. Operating across every segment of the telecommunications market, the company delivers critical infrastructure and digital solutions to a vast array of households, private enterprises, and state institutions nationwide.
Beyond traditional connectivity, Rostelecom has diversified its portfolio to include specialized solutions in E-Government, cybersecurity, biometry, healthcare, education, and housing and utility services. The company also manages data centers and cloud computing services through Beeline and MTS. Notably, in the summer of 2019, Rostelecom announced a partnership with Rostec to advance the development of digital healthcare.
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Key Facts
- Market Position: Largest integrated digital services provider in Russia.
- Infrastructure: Extensive fiber-optic cable lines (FOCL) connecting Russia to Europe and East Asia.
- Mobile Integration: Formed a joint venture with Tele2 Russia (T2 Holding), holding a 45% voting stake.
- Technology: Deployed 3G+ networks using HSPA+ technology with speeds up to 21 MB/s (upgradable to 42 MB/s).
- Strategic Reach: Operates a satellite system in the Eastern region with 11 land stations in Siberia and the Russian Far East.
Land and Backbone Network Infrastructure
The foundation of Rostelecom's operations is its extensive network of fiber-optic cable lines (FOCL). These lines serve as the primary arteries for data transmission, connecting the Russian Federation to international markets in Europe and East Asia.
Major FOCL routes traverse the country along three primary directions: Moscow to Novorossiysk, Moscow to Khabarovsk, and Moscow to Saint Petersburg. While IP transit was previously allocated to a separate entity, RTComm, Rostelecom developed its own STM-64 network (capable of 9.9533 Gbit/s). By the end of 2006, this network was planned to cover the entirety of Russia, following initial deployments in Rostov-on-Don, Krasnodar, Volgograd, and Stavropol.
As of the first quarter of 2010, the company's reach was evidenced by its massive subscriber base:
- 29.2 million local fixed-line voice subscribers
- 12.4 million mobile voice subscribers
- 7.4 million fixed-line broadband subscribers
- 5.5 million pay-TV subscribers
Satellite and Cellular Networks
Satellite Connectivity
To ensure coverage in remote areas, Rostelecom partnered with the Russian Orbital Group to establish a satellite system for the Eastern region. This system utilizes 11 land stations located across Siberia and the Russian Far East, with further expansions planned for the Western region.
The Evolution of Mobile Services
Throughout the 1990s, Rostelecom expanded its mobile footprint through various subsidiaries, including SkyLink, NSS, Baikalvestkom, Yeniseikom, Volgograd GSM, and Akos. These entities provided services across 59 regions to over 13.5 million subscribers.
In the 2010s, the company transitioned to third-generation (3G+) networks in 27 regions, utilizing equipment from Ericsson and Huawei. These networks employed HSPA+ technology, offering data speeds of 21 MB/s with the capacity to reach 42 MB/s. This infrastructure was designed to be LTE-ready, facilitating a smoother transition to 4G.
The first LTE network was launched in Sochi in June 2013 to support the 2014 Winter Olympics. By the end of 2013, LTE services were extended to eight additional regions, including the Sakhalin Oblast, Chukotka Autonomous Okrug, and the Republic of North Ossetia–Alania.
Strategic Merger with Tele2 Russia
In December 2013, Rostelecom's board approved a strategic merger of its mobile assets into Tele2 Russia. This resulted in the creation of T2 Holding, where Rostelecom holds a 45% voting stake in exchange for its mobile subsidiaries (including SkyLink). Tele2 Russia, owned by VTB Bank and businessmen Yuri Kovalchuk and Alexei Mordashov, holds the remaining 55%.
This merger combined a subscriber base of approximately 38 million users, representing a 16% market share. To manage this transition, Rostelecom created a wholly owned subsidiary, RT-Mobile, to hold the necessary mobile and LTE licenses.
Infrastructure Summary
| Network Type | Key Technologies/Assets | Primary Reach/Purpose |
|---|---|---|
| Backbone | FOCL, STM-64 | International and cross-country transit |
| Satellite | 11 Land Stations | Siberia and the Russian Far East |
| Mobile (3G+) | HSPA+ (Ericsson/Huawei) | 27 regions; speeds up to 21-42 MB/s |
| Mobile (4G) | LTE | Sochi (2014 Olympics) and 8 other regions |
| Access | FTTB, GPON | Last-mile connectivity to end-users |
Frequently Asked Questions
What is Rostelecom's primary role in the Russian market?
Rostelecom is the largest integrated provider of digital services and products in Russia, serving households, private businesses, and state enterprises across all telecommunications segments.
How does Rostelecom handle international data transit?
The company utilizes fiber-optic cable lines (FOCL) to connect Russia with Europe and East Asia, with major routes running from Moscow to Novorossiysk, Khabarovsk, and Saint Petersburg.
What was the purpose of the merger with Tele2 Russia?
The merger aimed to increase efficiency in mobile network rollout. By forming T2 Holding, Rostelecom combined its assets and licenses with Tele2's operational expertise, resulting in a combined market share of 16%.
What technology does Rostelecom use for its 3G+ networks?
Rostelecom uses HSPA+ technology provided by Ericsson and Huawei, which allows for data transfer speeds of up to 21 MB/s, with the potential to upgrade to 42 MB/s.
Where was the first LTE network launched?
The first part of Rostelecom's LTE network was launched in Sochi in June 2013 specifically for the 2014 Winter Olympics.