The Russian market for internet access saw a return to moderate growth in 2021, following a decline in 2020, but is expected to grow slowly throughout the forecast period of 2021-2026.

Revenues have been suppressed by fierce price competition among providers, leading to revenue losses for providers due to business interruptions and closures during the economic downturn.

The Russian internet access market had total revenues of $2,543.5 million in 2021, with a CAGR of 4.1% between 2016 and 2021.

Although the cost per Mbps has decreased due to technological advancements, the average price of fixed broadband services paid by consumers has slightly increased as available internet speeds have grown sharply.

Market volume increased to 121.8 million internet users in 2021, with an expected increase to 130.9 million internet users by the end of 2026, representing a CAGR of 1.5% over 2021-26.

The fiber optic segment generated the most revenue in 2021, while xDSL contributed a smaller share of revenues.

The development lag in the infrastructure of earlier transmission technologies has favored the expansion of the country’s fiber optic network, which is skewed towards upper-middle to high-income consumers and large businesses.

The performance of the market is expected to decelerate, with a forecasted CAGR of 1.1% over 2021-26, driving the market to a value of $2,689.2 million by the end of 2026.  

As networks are extended to rural areas, this will encourage growth, but Russia’s military engagement in Ukraine and related sanctions are expected to have an adverse impact on the market.