• Market size and growth

The fixed-line telecom market in the Republic of Tatarstan

• A three-tier market:

- local (Cities of the Republic Tatarstan)

- zonal (the Republic of Tatarstan)

- domestic (DLD) and international long-distance (ILD) (Russia and abroad) 

• In Tatarstan, the zonal operator is Tattelecom (includes Kazan GTS, a city of Kazan incumbent), controlled by the government of Tatarstan
• The long-distance market is dominated by government-controlled (via Svyazinvest) Rostelecom. Recently, another company, MTT which was the first company to be granted license to operate as a long distance carrier, has launched its services in the market.
• Residential customers pay for local calls in cities of the Republic of Tatarstan in a number of ways:

            - fixed monthly payments (unlimited minutes)

            - per minute

            - fixed monthly payments for maximum number of minutes + per minute basis

The Internet service market

Currently, Internet services in Russia are delivered mainly through wireline broadband access which accounts for 66 per cent of the market with wireless accounting for 6 per and dial up for 28 per cent. The broadband market is currently at a very early stage of development and there is a notable lack of internet access and fixed line telephony in many smaller residential areas and rural communities. According to various estimates, by 2010 wireline broadband access will grow to 75 per cent of internet market with wireless broadband access expected to achieve 10 per cent and dial up expected to decrease to 15 per cent. The number of fixed broadband connections is surpassing dial-up technology as broadband coverage widens and more broadband service providers bundle Internet access with video and voice. During 2007 Internet access made strong gains with 43 per cent growth in the corporate sector and 71 per cent in the residential sector.

Internet service market is a non-regulated by government and brings much opportunities for raising incremental revenues.

In Tatarstan Republic Internet service is delivered by fixed-line, mobile, Cable and satellite operators. Teleset holds strong position of the xDSL market representing solid 15 per cent in Kazan, and shares over 10 per cent of the market in Naberezhnye Chelny.

Rapidly developing cities  

     Kazan:

• One of Russia's top 10 cities of Russia by population
• Growing population (currently approximately 1.2 million)
• Fifth among million-population cities of Russia by social and economic development
• Wealth based on natural resources (oil), aerospace, chemical industries
• Average salary increased by 27% in 2007
• High level of construction in Kazan (both residential and commercial):

Naberezhnye Chelny:

• The second largest city after Kazan in the Republic of Tatarstan
• Growing population (currently approximately 500,000)
• Accounts for approximately 20 per cent. of the gross regional product of the Republic of Tatarstan
• It is highly industrialised and khown for the leading manufacturer of heavy trucks - KAMAZ
• Average salary increased by 20% in 2007
• Construction of 220,000 sq.m. of new housing space in 2007, compared to 200,000 sq.m in 2006