Overview of the Russian telecom digitalization market

What technological trends in telecom digitalization became relevant by the end of 2024? How does the information security factor affect network traffic control requirements? Why are import substitution processes "stalled" in the industry? These and other questions are answered in the market overview from TAdviser.

In 2023, the telecom market showed positive dynamics, which could not but affect the digitalization of the industry. In general, the information security factor had the greatest impact, hence the increased interest of operators in the issue of security of all IT solutions supplied to them. At the same time, it is not always possible to find alternative domestic information security developments. Regulatory requirements have also increased in terms of information security, in connection with which the key target for operators was to ensure control over network traffic and consumed content.

Among other important trends, experts note collaborations between telecom operators and digital partners from other industries, an increase in data volumes and the growth of the subscriber network, an increase in client requirements for the quality of services and service, adaptation and implementation of the latest technologies, as well as import substitution amid a shortage of personnel.

The main problem of telecom at this stage is the inability to replace the import of the necessary hardware solutions, and here Russian companies still have a lot to do. For example, there are classes of systems that, in principle, do not have a domestic analogue. At the same time, a quick transition to import-substituting software in telecom is impossible, experts say.

The ranking of the largest IT suppliers for the telecommunications industry includes 30 companies. The leader is ICS Holding with revenue of 71.9 billion rubles. On the second line is the developer of software for telecom - the company Nexain. Third place at the integrator Sitronics Group.

The total revenue of all participants in the rating amounted to 118.3 billion rubles.

Technologically, the most significant market trends are the transition from 3G to 4G and 5G pilots, migration to the clouds, the demand for information security, AI, chat bots and voice assistants, IoT, virtualization. A little less often, experts mention billing, storage, ecosystems, digital platforms, mobile antiscam.

Representatives of Bercut, QSOFT, Satel, RTK-Service, SimbirSoft and Tibbo Systems told TAdviser about the cases remembered by the market and shared their achievements.

Of the striking examples: in large cities such as Moscow and St. Petersburg, there are pilot zones where 5G capabilities are tested. One of the largest cellular operators has launched several test zones with connection speeds up to 1.5 Gbps. Full 5G infrastructure in millionaire cities is planned by 2028.

On the global telecom market, the forecast of annual growth for the next five years is at around 1%, the structure of communication services in the total revenue will not change much^[1]. Against this background, 5% and above - the revenue growth of the Russian telecom looks more advantageous.

At the same time, participants in the domestic market are forced to overcome all kinds of obstacles. In addition, in the context of growing competition, the problem of attracting customers is very acute for telecom operators. And given the fact that extensive growth no longer gives operators significant results of business expansion, intensive development of the services provided is required.