Moscow ICT Market (IT and Communication Services)

2024

The Internet in Moscow is becoming more expensive due to the prices raised by Rosseti for the placement of fiber optic cables on power line supports

The cost of Internet services in the Moscow region is increasing due to an increase in tariffs for placing fiber optic cables on power line supports. This became known in July 2024.

Since January 2024, Rosseti Moscow Region has increased the fee for providers for renting supports of its overhead lines, which led to a conflict between telecom operators and power engineers.

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According to Vedomosti, more than 10 metropolitan Internet providers since the beginning of May 2024 have filed lawsuits against Rosseti Moscow Region with a demand to return prices to the 2023 level. Operators do not agree with the new payment system, which provides for charging for each cable placed, and not for the support as a whole.

According to the new tariffs, the rental fee for 0.4 kV overhead line supports increased from 81 to 97 rubles per month, and for 6-20 kV lines - from 103 to 124 rubles. At the same time, payment is now charged for each wire on the support, and not for the support itself, which can lead to an increase in operator costs by 3-4 times.

Dmitry Galushko, President of the Association of Small Telecom Operators of the Regions, notes that from two to six wires can be placed on one support for each operator, which significantly increases the total cost of leasing infrastructure.

Managing Director of Bitreis Telecom Alexei Kalachev emphasizes that the rise in prices for renting supports exceeds the level. inflations According to Rosstat inflation the data, Russia in 2023 it amounted to 7.42%, while the increase in Rosseti tariffs reached almost 20%.

The new rules will affect the private sector to a greater extent, where the cost of Internet access is already higher than in apartment buildings. Alexey Pankratov, General Director of Mosline Group, predicts that the price of Internet services in the private sector may rise from 1000-1500 rubles to 2000-2500 rubles per month.^[1]

Public services, AI on the roads, e-commerce. Moscow and Beijing signed an agreement on digitalization

On June 17, 2024, Moscow and Beijing signed a cooperation program aimed, among other things, at digitalization. The initiative provides for the creation of a trade and economic platform for in-depth exchange of experience and cooperation between enterprises in areas such as the digital economy, electronic services in trade, etc. Read more here.

2023:21% increase in ICT vacancies

The number of available vacancies for IT and telecommunications specialists in Moscow in 2023 increased by 21% (to 34.2 thousand units), including analysts, project managers and support specialists. For programmers and developers, the figure increased by 16%, to 9.3 thousand vacancies. This is evidenced by the data of the Moscow Department of Information Technology (DIT), published in May 2024.

According to the ministry, in 2023, proposals for IT specialists accounted for about 15% of the total number of open vacancies. The most popular specialty in the field of ICT is still programming and development, it accounts for about 27% of all vacancies in this area. IT specialists are in demand not only in companies that are engaged in technology and communications, but also in the financial sector, mining and oil and gas industries, metallurgy, media and marketing, electronics, business services and other areas, the DIT said.

source = DIT of Moscow

According to the study, 13% of development vacancies are associated with artificial intelligence technologies, including generative artificial intelligence. According to DIT, specialists with knowledge of the programming languages ​ ​ 1C, Java, PHP, Python and C++ are most in demand. At the same time, more and more companies are looking for employees with skills in working with artificial intelligence, which is most often used to create recommendation systems.

The average income of programmers with experience in Moscow by the end of 2023 (taking into account premiums and taxes) amounted to 304 thousand rubles, which is 5% more than a year earlier. At the same time, the salary of trainee programmers decreased by 17.5%, to 66 thousand rubles.

The study notes that the ICT field remains attractive to graduates. So, in 2023, the total number of students of specialized faculties increased by 17%.^[2]

2022

Expenses on digitalization of Moscow industry for 2 years increased by 59% and reached 174 billion rubles

On July 9, 2024, it became known that the costs of digitalization of Moscow's industry in two years increased by 59% and reached 174 billion rubles in 2022.

According to Anatoly Garbuzov, head of the Moscow investment and industrial policy department, the capital is betting on the development of high-tech industries, which is impossible without the introduction of digital technologies. He noted that in recent years there has been a steady increase in the cost of introducing and using digital technologies in industry.

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Moscow is rightfully considered the center of domestic high-tech production. About 40% of current Russian patents belong to Moscow enterprises, and every third production in the metropolis is high-tech. The city is actively conducting breakthrough developments, testing them and introducing them into production.

The special economic zone "Technopolice Moscow" has become a key platform for localizing technical and innovative enterprises. It includes six sites, including the Rudnevo industrial park, where the Federal ALS Center was opened in 2023 - a reference research and production center for unmanned aircraft.

Residents of the SEZ "Technopolice Moscow" enjoy significant preferences. Among them are a zero tax rate on property, transport and land, a reduced income tax and the possibility of duty-free imports. These measures are designed to stimulate the development of high-tech industries and contribute to the further digitalization of the capital's industry.

Technopolice Moscow presents enterprises from various high-tech sectors, including photonics and microelectronics, electric vehicles and pharmaceuticals. Such a variety of industries demonstrates Moscow's integrated approach to the development of innovative industries and the introduction of digital technologies.^[3]

The share of Moscow companies in the Russian IT market for the year increased from 28% to 36%

At the end of 2022, St. Petersburg IT companies accounted for 21% of software sales in Russia against 24% a year earlier. At the same time, the share of Moscow developers, on the contrary, increased during this time - from 28% to 36%. Such data are given in the study "Russoft," published in December 2023. Read more here.

The total turnover of Moscow ICT companies reached 3.5 trillion rubles

The total turnover of Moscow ICT companies in 2022 reached 3.5 trillion rubles. The press service of the Department of Entrepreneurship and Innovative Development of Moscow announced this at the end of December 2023.

More than 500 digital projects have been implemented by Moscow in various fields over the past five years. Each of them makes the city more comfortable for millions of residents. Over 70 times, the capital's digital solutions have become winners and prize-winners of prestigious international awards, "said Deputy Mayor of Moscow Natalya Sergunina.

The total turnover of Moscow ICT companies for the year reached 3.5 trillion rubles

According to her, in five years by 2022, financial support from Moscow received more than 1.5 thousand. IT companies. They approved grants and subsidies for 824 million rubles. With the help of concessional loans, the industry business attracted about 8 billion rubles more. Thanks to the guarantees of the fund for assistance to lending to small businesses in Moscow, IT entrepreneurs took out loans totaling 2.1 billion rubles, the deputy mayor noted.

He also pointed out that by August 2023 there are 53 technoparks in Moscow, five of which specialize in the field of information technology (Water Stadium, Otradnoye, Fiztekhpark, Horizon, Ineum). The sites have all the necessary infrastructure for the development and production of innovative products. It includes laboratories and clean rooms, specialized testing and certification centers, and so on. Residents of technoparks are also provided with organizational and financial support from the city. Due to benefits, the total reduction in the tax burden can reach 25%. The demand for infrastructure for innovation in Moscow is consistently high, the share of free space in technology parks is about 1%. It is planned to open new technology parks in the field of information technology.

Investments of Moscow companies in IT reached 570.5 billion rubles

Moscow companies in 2022 invested a total of 570.5 billion rubles in IT solutions. These funds were mainly spent on the development of new types of software for industrial enterprises and civilian use, said the mayor of the Russian capital Sergei Sobyanin in mid-June 2023.

According to him, in 2022, every fifth ruble of investments in the Moscow economy was aimed at developing industry, communications and science technologies - this is more than 1.1 trillion rubles. Against the background of large investments in IT, the production of electronic components and printed circuit boards in Moscow in 2022 increased by 27.8% compared to 2021, according to data from the Department of Investment and Industrial Policy of Moscow.

Moscow companies in 2022 invested a total of 570.5 billion rubles in IT solutions

It is also reported that the volume of sold products of residents of the SEZ "Technopolice Moscow," on the site of which the largest ECB manufacturers work, increased by 64.8% and exceeded 58.1 billion rubles. A year earlier, this figure amounted to 35.3 billion rubles. Among the leaders in revenue are manufacturers of electronic components Micron, SPC Elvis and Angstrom. Such growth is associated with active import substitution in the microelectronics industry and its state support.

Moscow is one of the leading cities in the world in the field of IT development, one of the first places in the world occupies in terms of the quality and volume of public services, accessibility of the Internet, cellular communications; and recently experienced quite a lot of crisis phenomena, in particular, during the [COVID-19 coronavirus pandemic] covid, the industry not only did not worsen its position, but, on the contrary, strengthened, occupied new niches and helped overcome the phenomena associated with the pandemic, for which special thanks to you all, - said Sergei Sobyanin.[4]

Revenue of Moscow IT companies increased by 17.5%

The total revenue of Moscow IT companies in 2022 increased by 17.5% compared to 2021. The capital's mayor Sergei Sobyanin wrote about this in his Telegram channel on February 26, 2023.

In Moscow, in 2022, manufacturing, construction and information technologies showed significant growth, he said.

It is planned to continue supporting the IT sector in Moscow

According to Sobyanin, the growth in the income of IT companies was partly facilitated by additional anti-crisis support from the city, which includes over 80 systemic, regulatory and financial measures for businesses and citizens in the amount of more than 100 billion rubles. These are soft loans for investment projects, lease deferrals, grants, subsidies and much more, the mayor of Moscow said.

In 2022, he announced that Moscow would not stop and reduce city programs for the development of the IT industry.

In this [2022] year, they placed about 25 billion rubles of the state order only for software... In addition, we will triple the volume of support for this industry for the programs that we have, including concessional lending, grants, and so on. We will not stop the city programs for the development of information technologies in the field of health, education, transport, public services - this, in turn, will give an additional impetus for the development of all IT sectors, including the availability of "Big Data" and work in the field of artificial intelligence, meteorological observation, in the field of medical services, which can then be broadcast, distributed to other regions, countries, this is also very important, - said Sobyanin.

He added that the experience gained by the capital proved the guarantees of new opportunities for various companies from a long-term and intelligible city order in IT. The mayor noted that the Moscow authorities intend to develop additional support measures for the industry, guided by proposals from specialists.^[5]

Sobyanin: 47 thousand Russian ICT companies with a turnover of 3 trillion rubles registered in Moscow

By the end of March 2022, 47 thousand companies from the field of information and communication technologies (ICT) were registered in Moscow, which corresponds to about 25% of the total number of such business representatives in Russia. The total annual turnover of the capital's ICT companies is about 3 trillion rubles (approximately 56% of the industry).

Moscow Mayor Sergei Sobyanin cited such data at a meeting with the heads of the largest IT companies. He noted that the share of ICT in the gross regional product is 6%, but its value for the city goes far beyond this value. The capital companies employ about 600 thousand highly qualified ICT specialists who are engaged in the development of software and applications, management of computer equipment, activities in the field of data centers and cloud infrastructure, services in the fields of computer technology, communication based on wired and wireless technologies, satellite communications.

Sergei Sobyanin: 47 thousand Russian ICT companies with a turnover of 3 trillion rubles registered in Moscow

It is noted that almost a quarter (22%) of open vacancies in the Moscow labor market by the end of March 2022 fall on IT and telecom specialties, and over the past three years the number of vacancies in the ICT sector has grown by 36%. The shortage of personnel even before the imposition of sanctions was one of the key problems in the IT industry, but in March 2022 the problem of personnel shortages aggravated their outflow abroad, according to the Moscow mayor's office.

They also reported that by the end of March 2022, the city has four specialized technology parks in the field of ICT: Otradnoye, Fiztekhpark, Water Stadium and Horizon. In total, 246 IT companies operate in the capital's technology parks, which show higher revenue growth rates than the industry average. The total turnover of these companies is about 185 billion rubles.^[6]

2020: The amount of financial support for IT-Business in Moscow increased 9 times, to 1.2 billion rubles

The volume of financial state support for technology companies in Moscow at the end of 2020 amounted to about 1.2 billion rubles, which is nine times more than a year ago. This was announced by the deputy mayor of the capital Natalya Sergunina, whose words are quoted on the official website of the mayor. Read more here.

2015: Three scenarios for the development of the ICT industry in Moscow

On March 19, 2015, the Moscow Department of Information Technologies announced the development of scenarios for the development of the industry in 2015 based on an analysis of the revenue of the information technology and communications industry for 2014^[7].

According to DIT experts, the volume of the Moscow ICT market may decrease by 7%, to 644.7 billion rubles. The IT development segment will sink the most, while the revenues of Internet companies may grow. The Internet will become the main locomotive for the development of the industry.

According to the baseline scenario, it is assumed to stabilize the exchange rate ruble against the dollar and the euro, the absence of new sanctions against, Russia price increases within the forecast Ministry of Economic Development and the absence of new rules for market regulation., head of Alexey Chukarin the analytical department of the department, estimates the likelihood of such a development of events at 60%.

The negative scenario forecast is calculated taking into account the possible strengthening of sanctions, high inflation, rising unemployment and a decrease in the level of salaries of Muscovites. The probability of its implementation is 25%.

The optimistic scenario, the probability of which was determined at 15%, implies the weakening or lifting of sanctions, as well as the strengthening of the ruble against foreign currencies.

The information technology segment will lose the most in 2015, according to DIT analysts. The corporate sector, which created 43% of all revenues for IT companies in 2014, will significantly reduce its spending on informatization.

The decline in relation to 2014, according to the optimistic scenario, will amount to 10% (up to 220.8 billion rubles), according to the baseline - 20% (up to 196.2 billion rubles), according to the pessimistic scenario - 30% (up to 171.7 billion rubles). IT companies will depend much more on end consumers. In 2014, individuals brought developers 20% of all profits. In 2015, their contribution will increase by 2-4.1%.

The fall in the telecommunications market will be somewhat less noticeable - even in a difficult economic situation, the corporate sector and residents will reduce their communication costs slightly, while the nature of consumption itself will change - users will choose the maximum amount of services included in package tariffs and refuse additional paid options. In a negative scenario, the volume of the telecom market will decrease by 10% (to 194.3 billion rubles), according to the baseline scenario - by 5% (to 205.1 billion rubles). With the optimistic development of events, revenues will remain at the same level (215.9 billion) - the fall in profits from individuals compensate for income from corporations.

The most rosy analysts assessed the prospects for the development of the Internet market - growing revenues from private clients compensate for a possible reduction in revenue from the corporate sector. According to the most likely (according to DIT) basic scenario, Internet companies expect growth by 5% (up to 243.4 billion rubles), according to the optimistic scenario, the market volume may increase by 10% (up to 255 billion), with an unfavorable set of circumstances, revenue will remain at the level of 2014 - 231.8 billion rubles). Thus, Internet companies will become the locomotive of the ICT market and will come out on top in terms of revenue in the industry. They lost in 2014 in this indicator to the IT segment.

See also

• ICT (Market) Russia

Notes