05 November 2018, 23:19 / Technologies

Rostelecom increases Internet tariffs

Competitors may follow his example Valery Kodachigov

From January to September 2018, Internet access services brought Rostelecom 58.7 billion rubles. – just over 25% of the operator’s revenue / Andrey Gordeev / Vedomosti

Last week, Rostelecom subscribers complained on social networks about the increase in fees for home Internet. From November 1, Internet fees will increase “as part of a general price increase,” two of them quote the operator’s message. Telecom Daily CEO Denis Kuskov knows about what is happening. According to him, the operator’s archival tariffs in the Volga region, the Urals and some regions of the North-Western District of Russia increased by 5–7%. This was confirmed by a Rostelecom employee.

The indexation of archive tariffs will gradually affect the whole of Russia, two Rostelecom employees say. According to one of them, tariff increases will occur in waves across all regions over the course of several months and can range from 5 to 7%. In absolute terms, tariffs will not increase much – by an average of 20–30 rubles, Vedomosti’s interlocutor clarifies.

At the end of the third quarter of 2018, Rostelecom served 12 million private Internet users and 5.1 million Internet television (IPTV) users, according to the company’s report. In the first nine months of this year, Rostelecom's revenue from Internet access amounted to 58.7 billion rubles. (just over 25% of the operator’s total revenue).

Yarovaya's law does not work yet

Technology/Telecommunications

According to an employee of the operator, Rostelecom is reviewing tariffs due to general economic factors. From January 1 next year, VAT will increase (from 18 to 20%), which will affect the cost of services. Plus, tariffs are affected by the weakening of the ruble, which makes imported content and equipment more expensive, he claims. By November 1, the dollar exchange rate had increased since the beginning of the year by 13.9% to 65.6 rubles, according to Central Bank data.

Finally, funds are needed to fulfill the requirements of the Yarovaya Law, notes a source at Rostelecom. The operator's representative does not comment on the costs of implementing the law. But Megafon , VimpelCom and MTS have already disclosed their planned costs: over five years, implementation of the law could cost them 40 billion, 45 billion and 60 billion rubles. respectively. The package of anti-terrorism amendments requires operators to store all telephone conversations, text messages, images, sounds, videos and other electronic information of users. Operators must increase Internet traffic storage capacity by 15% annually over five years.

Rostelecom is not the first operator to raise prices this year, recall Kuskov and a Rostelecom employee. Since June, Er-Telecom Holding has increased some tariffs by 10%, Kommersant reported. The activities of operators are affected by inflation, rising costs for equipment and content. In order to continue to provide quality services, operators are reviewing the cost of services, the publication quoted an operator representative.

The majority of federal and regional telecom operators surveyed by Telecom Daily are ready to raise tariffs at the end of 2018 or beginning of 2019, says Kuskov. The prerequisites for the growth of tariffs are the same for everyone: an increase in VAT, expenses for the Yarovaya law, a weakening of the ruble, he notes. The increase in VAT and the Yarovaya law will sooner or later raise the issue of compensation for expenses for operators, a source in one of the large mobile operators is sure.

Representatives of Rostelecom and other Russian operators declined to comment.