It was established on September 23, 1993 on the basis of 20 state-owned enterprises providing long-distance and international communication services. Until 2006, it had a monopoly on the provision of long-distance communication services. In 2013, Rostelecom was reorganized through the merger of OJSC Svyazinvest (formerly the majority shareholder) and 20 other companies. In 2014, Rostelecom and Tele2 created a mobile joint venture

Full title: Public Joint Stock Company Rostelecom

Industry: Telecommunications and IT

Management: Oseevsky Mikhail Eduardovich

Story

It was established on September 23, 1993 on the basis of 20 state-owned enterprises providing long-distance and international communication services. Until 2006, it had a monopoly on the provision of long-distance communication services. In 2013, Rostelecom was reorganized through the merger of OJSC Svyazinvest (formerly the majority shareholder) and 20 other companies. In 2014, Rostelecom and Tele2 created a mobile joint venture. In 2014, for the first time, the company prepared a video surveillance system for operation during the Unified State Examination and founded a joint media enterprise with the All-Russian State Television and Radio Broadcasting Company - TsTV JSC. In 2015, Rostelecom approved the terms of an agreement with Rosenergoatom for the construction of Russia's largest data processing center (DPC).

What does

At present, it owns a telephone network covering almost the entire territory of the country (500,000 km of backbone networks). In addition, it has direct access to 190 networks in 70 countries and contracts with 2.3 thousand telephone operators. In total, it serves about 20.5 million local telephone subscribers. It is the market leader in broadband Internet access (BBA) and pay TV in Russia. Its base includes 9.3 million pay TV subscribers and 12.3 million broadband subscribers. Of these, 11.5 million are private users, 0.8 million are corporate clients. It provides free access to 2,000 sites, including the public services portal. Staff - more than 150 thousand people. In 2013, Rostelecom was reorganized through the merger of OJSC Svyazinvest (formerly the majority shareholder) and 20 other companies. In 2014, Rostelecom and Tele2 created a mobile joint venture with a combined subscriber base of 38.9 million (more than 10,000 customers in the B2B sector). In addition, a number of major national projects are being implemented: eliminating the digital divide, creating a national cloud platform, developing the Unified Portal of State and Municipal Services (electronic government), providing video surveillance for the USE and elections.

Financial indicators

Owners

Share (%)
Federal Property Management Agency45,04%
Mobitel LLC16,24%
PJSC Central Telegraph0,00010%
City government of the city of Kaluga0,000020%
Department of Land and Property Relations of the Novosibirsk City Hall0,000018%
GKU department for state property management of the Tomsk region0,0000058%
Vladimir Sergeevich Kirienko0,0000035%
State Property Management Committee of the Novosibirsk Region0,00000010%
Department of Land and Property Relations of the Yaroslavl Region0,000000040%
Other shareholders/free float38,76%

Management

Oseevsky Mikhail Eduardovich

Job title:

Key persons

Oseevsky Mikhail

Job title: President, Chairman of the Board

Since 1993, in various positions, he managed the St. Petersburg Currency Exchange CJSC and the Industrial Construction Bank. In 2003-2011 - Vice Governor of St. Petersburg. In 2011-2012 - Deputy Minister of Economic Development of the Russian Federation. From 2012 to 2017 - Deputy Chairman of the Board of VTB. In March 2017, he headed PJSC Rostelecom.

INDUSTRIAL TRENDS

In the global market of telecommunications services, including Russia, there is a decrease in the role of traditional services and a rapid growth in the popularity of ecosystem and platform solutions. The rapid development of technologies and the spread of solutions in the areas of the Internet of things, artificial intelligence and the use of big data are playing a critical role in the transformation of the industry.

Consumer behavior is also changing: there is a rapid development of visual communication channels, an increase in the use of social networks and an increase in the importance of personalized solutions.

Since the growth of the IT services market is significantly outpacing the market for traditional services, companies are focusing on new solutions beyond “basic products” to increase customer loyalty and increase sales. An important aspect of market development is also becoming the need for investments for the implementation of large-scale infrastructure projects, which the industry will rely on when introducing innovative technologies.

The growth of the telecommunications market in Russia in 2018 amounted to 3.4%, which was the best result over the past five years. The market volume reached 1.7 trillion rubles . The telecommunications market in Russia is consolidated by four major players, Rostelecom holds leading positions in many segments.

The main driver of the market growth was the second year in a row growing revenue from mobile data transmission. The strong results of the industry in 2018 continue to be supported by last year's initiative of operators to abandon price competition and increase the offer of additional services. The broadband and pay TV markets also showed stable positive dynamics. Fixed-telephone services and some inter-operator services continued to decline, but the rate of decline slowed. More than two thirds of the market, as in previous years, forms the client segment of individuals.

The Russian telecommunications market is divided among several major players with a combined market share of about 80%: MTS, MegaFon, Rostelecom, VimpelCom and Tele2 Russia.


Structure of the Russian telecommunications market by client segments, 2018, % Source: TMT Consulting.

Revenues of the Russian telecommunications market, 2015–2023, billion rubles Source: TMT Consulting.

The penetration of broadband Internet access in the segment of individuals in 2018 approached 60%. The total subscriber base reached 34.9 million due to the connection of new housing stock and small towns. The growth of industry revenues from access to broadband access in 2018 amounted to 3.2%, the revenue of operators reached 192.3 billion rubles. An important factor in the growth of the market in 2018 was the increase in the average subscriber bill, which confirms the trend towards rationalization of competition and the willingness of the subscriber to pay more for stable and high-speed Internet.

Structure of the broadband access market in the B2C segment by operator revenue, 2018, % Source: TMT Consulting.

Structure of the broadband access market in the B2B segment by operator revenue, 2018, % Source: TMT Consulting.

Market share of Rostelecom by operator revenue, broadband access, 2016-2018, %

segment 2016 2017 2018
B2C 38 40 41
B2B 35 35 37

Source: TMT Consulting.

Number of broadband subscribers, 2015–2023, million Source: TMT Consulting.

Growth in the number of Pay TV subscribers slowed down in 2018, but the segment showed positive dynamics, increasing by 2.6% to 43.9 million subscribers; the service penetration rate exceeded 77%. Revenue in the segment also increased by 10% to RUB 92.6 billion. The average bill per subscriber was 177 rubles without VAT, which is 10 rubles more than in 2017. The cable TV segment continues to lead the market in terms of revenue compared to IPTV and satellite TV, but its share is gradually declining.

Market structure by income of Pay TV operators, 2018, % Source: TMT Consulting.

Revenue structure by Pay TV technologies, 2018, % Source: TMT Consulting.

Market share of Rostelecom by operator revenue, pay TV, 2016-2018, %

Source: TMT Consulting.

Number of Pay TV subscribers, 2015–2023, million Source: TMT Consulting.

The market of virtual mobile operators (MVNO) has been demonstrating strong growth over the past two years and remains one of the promising areas in the telecommunications market. According to a study by TMT Consulting, at the end of 2018, the number of subscribers of virtual mobile operators amounted to 7 million, which is 18% more than a year earlier. Rostelecom leads the MVNO market in the B2B segment with a market share of 56% Source: TMT Consulting data, 2019..

The MVNO market is being developed by companies from related industries. In 2018, PJSC Sberbank launched its own brand of virtual mobile operator Sbermobile. Sberbank became the second bank after Tinkoff Bank to introduce a virtual telecom operator to the market in 2017.

Number of MVNO subscribers in the B2B segment, 2016–2018, million Source: TMT Consulting.

MVNO market structure by number of subscribers, 2018, % Source: TMT Consulting.

Number of fixed-line subscribers, 2015–2023, million Source: TMT Consulting.

In 2018, the fixed telephony market continued to decline. Service penetration fell by 3 p.p. to 34.5%, while the number of subscribers decreased by 1.9 million to 26.3 million Source: TMT Consulting data, 2019.. PJSC Rostelecom remains the leader in the fixed-line communications market in all segments.

Structure of the fixed telephony market by operators, 2018, % Source: TMT Consulting.

The market continues to show consistently high growth rates. An important role in its development is played by the growth in the supply of exclusive content by online cinemas, the increase in user loyalty to legal OTT VoD services, and the entry of such major Internet companies as Yandex and Rambler into the market.

According to TMT Consulting, the online cinema market grew by 48% in 2018 and reached RUB 11.2 billion. The most rapidly growing income was generated by the paid model, with its share of revenue rising to 69%. At the end of the year, the market volume increased by 75% and amounted to 7.85 billion rubles. Advertising revenue brought 3.52 billion rubles, an increase of 10% over the year.

According to forecasts, by 2023 the size of the OTT video services market will be about 36.0 billion rubles, 86% of revenue will fall on income from paid services. The average market growth rate (GAGR) in the next 5 years will be 26%.

Forecast of OTT market development by revenue structure, 2014-2023, Source: TMT Consulting data, 2019. billion rubles Source: TMT Consulting.

In 2018, the Russian Internet of Things (IoT) market reached a volume of about 251.6 billion rubles Source: IDC Russia data.. The segment is one of the fastest growing in the market with an estimated growth rate of around 18% per annum until 2022. In Russia, the development in the field of the industrial Internet is mainly based on the integration of IT with the main activities of companies, the optimization of business processes and government initiatives to digitalize the economy.

Manufacturing and transport are the leading industries in terms of investments in the industrial Internet. The main areas of application of the technology at the moment are considered to be quality control of products and optimization of energy consumption.

The main trends in the development of the data center market include increasing the capacity of existing data centers and commissioning new data centers. In addition, the development of cloud services is predicted. Rostelecom ranks first in Russia with 5.9 thousand racks in commercial data centers located in 13 cities.

The Russian market is influenced by the growing need of citizens and companies for data storage and processing, as well as work within the framework of the Digital Economy state program. In addition, the service model is gaining popularity, which implies the transition to outsourcing of its own IT infrastructure.

The average annual growth of the market for commercial data center racks is expected to be at least 9-10% in the next three years Source: iKS-Consulting data, 2019.. Thus, it is expected that by 2021 about 56,000 data center racks will be in operation in Russia.

Forecast for the development of data processing and storage centers in Russia, 2016–2022 Source: TMT Consulting data, 2019.

Shares of market leaders of commercial storage and data processing centers by number of racks, 2018, Source: TMT Consulting data, 2018. %

The steady growth of the information security market will continue as the amount of data stored in information systems increases, as well as the growth of data transmission in Smart Home projects, automatic process control systems and the Internet of things. In the period 2018-2022, the forecast CAGR for the market will be about 9%

served more than 10 million pay TV subscribers, according to a Telecom Daily report. Compared to Q1, its subscriber base increased by about 100,000 subscribers. Thus " Rostelecom” became the first Russian wireline operator to gain more than 10 million pay TV subscribers, says Telecom Daily CEO Denis Kuskov.

« Rostelecom” is the second Russian pay TV operator in terms of the number of subscribers. In the first place is the National Satellite Company (Tricolor TV): according to Telecom Daily, its subscriber base reached 10 million subscribers in the fourth quarter of 2013, and at the end of June the operator served more than 12.2 million subscribers.

Rostelecom representative Valery Kostarev did not comment on Telecom Daily's calculations. The operator will sum up the results of the II quarter on August 2, he says. But it is expected that by the end of April-June the total number of pay TV subscribers will exceed 10 million, Kostarev notes.

One of the factors that increased interest in Rostelecom's pay TV, Kostarev calls the World Cup, of which the company became an official partner in the spring. Under the World Cup Rostelecom made several special offers, says Kostarev.

Both in the second quarter of 2018 and in previous quarters Rostelecom” shows the highest organic growth rates, notes Kuskov. He - perhaps the only one among the major Russian operators, which is still building networks in the regions, he says. According to him, new viewers are, as a rule, residents of small towns who have connected Internet television (IPTV) of Rostelecom. Previously, high-quality TV, with the exception of satellite, was often not available to them - and together with Rostelecom's IPTV, they also receive the Internet, explains Kuskov.

In general, the number of Pay TV subscribers in Russia increased by less than 0.5% over the quarter (annual growth was slightly less than 2%). The market is growing extremely slowly, since 75% of Russian households are already connected to pay TV - we are talking about a glut, says Kuskov. In addition, the circle of those who do not watch TV is growing: users are increasingly reading news on the Internet and watching online videos - this audience is constantly growing, he says.

The presence of Rostelecom in the pay TV market is very noticeable, it is a very strong player, says Alkhas Mirzabekov, CEO of Iskratelecom. For Rostelecom, television is one of the key services for business growth, he says. According to him, " Rostelecom» attracts new users by building communication lines in remote communities where there was often no connection at all. In the same time " Rostelecom» builds networks under co-investment agreements in large development projects, he says.

Rostelecom has high quality television services, interesting content, and a balanced tariff policy, Mirzabekov lists. One of the advantages of IPTV from Rostelecom is that the user can get a set-top box to watch it almost free of charge, for rent, and in most cases you have to pay for equipment for watching satellite TV.

The number of subscribers and Internet users continues to increase today, so the question remains relevant: "Which operator to choose?" One of the players in the telecommunications market and a major employer is OJSC Rostelecom. What is this provider? What are the opinions of employees about Rostelecom?

About company

The market of telecommunication services in our country is steadily developing. OJSC Rostelecom has been an interregional operator since 2006 and operates in several Russian regions. It occupies far from the last positions, but it is not included in the "big three" operators. What services does the company provide?

  • Local and long-distance telephony.
  • Interactive TV.
  • Cellular.

Company activities

Rostelecom performs various activities related to the creation and development of e-government, ensures the functioning of elections, etc. It is the market leader in telecommunications services provided to Russian government agencies and corporate users. It occupies a leading position in the provision of pay-TV services (more than 8 million users). The company has the largest backbone network in the Russian Federation, with a total length of 500,000 km. According to international credit ratings, the company has a stable financial position. Revenue for the 1st quarter of 2015 amounted to more than 70 billion rubles, net profit - more than two billion rubles.

Rostelecom as an employer

The company is a major employer that provides official employment, a full social package, a stable job, fair wages without delay. Often noted on the positive side of the team in which they work. Feedback from Rostelecom employees makes us pay attention to the company's commercial approach to solving many issues. For example, installation is carried out even with poor line parameters. The priority is to capture the market, fulfill and overfulfill the plan, and not personnel. Recruited in the staff mainly and sellers, and other specialists are reduced. Work in Rostelecom, the reviews of employees about which you need to study before passing the interview, varies depending on the department and region.

Positive staff feedback about the company

Employees note that the company has changed for the better lately, a positive development trend is outlined. The few positive reviews of Rostelecom employees reflect the following advantages of the employer:

  • work is stable, simple and understandable, competently organized;
  • Opportunity for career growth in a prestigious company;
  • acceptable working conditions;
  • close-knit team and high;
  • increase in salaries and funding after the change of leadership in a number of regions.

Negative feedback from employees about Rostelecom

According to employees, the old qualified specialists of the company have been reduced to 90%. Large cuts have meant that new and remaining employees are forced to take on a number of responsibilities of those who have been made redundant at the same wage level. Employees of Rostelecom reacted negatively to the policy pursued by management in relation to personnel. Many reviews point out the same shortcomings of this employer.

  • Management incompetence.
  • Unfavorable socio-psychological climate.
  • Bureaucracy and red tape. The software works very poorly, before you do something, you need to coordinate your actions with many people. Contracts are concluded for a long time, about a month.
  • High staff turnover. There is no competent personnel policy. They do not retain, do not appreciate good specialists.
  • Small worthy only for top managers.
  • Traditional modes of communication are broken. Outdated equipment, cables, gaskets, etc. Major repairs are not planned. The company is not able to provide high-quality communication even for its employees.
  • Fitters buy equipment and pay for gasoline at their own expense.
  • They misinform applicants at interviews and clients.

Work at Rostelecom, the feedback from employees about which should make the management think about the problems of the company, is characterized by a high workload and low motivation of the staff. Many were not satisfied with the 35% bonus, which depends on the loyalty of the senior management, large fines up to 95%. At the head office of the company, the appeals and complaints of employees are not commented in any way.

Customer reviews about the provider "Rostelecom"

A huge number of reviews have been written about Rostelecom, among them there are both positive and negative ones. Among the advantages of the services provided by the provider, customers distinguish:

  • favorable conditions and prices according to tariffs;
  • stable wi-fi;
  • in terms of television, they note the archive and a clear image.

In general, negative feedback from Rostelecom employees and consumers prevails. The predominance of negative opinions about this provider can be partly explained by the fact that, having not found understanding in the company's support service, a frustrated client is more willing to express his dissatisfaction. Consumers of Rostelecom services note a number of shortcomings.

  • The quality of lines, maintenance and services is low.
  • Service missing. Irresponsible attitude towards customers.
  • Poor quality support and technicians.
  • They don't deal with customer complaints.

Why are Rostelecom's customers dissatisfied?

Many customers note a very low Internet speed, often not at all corresponding to the one stated in the tariffs, constant departures, interruptions and disconnections of the Internet. The provider "Rostelecom", reviews of which are mostly negative, according to many consumers, misinforms customers. Receipts for payment are sent late, and then a penalty is charged. Often there are technical problems with the processing of consumer payments.

"Rostelecom Contact Center", reviews of employees and customers about which are very contradictory, also causes a lot of criticism. Consumers note that it is very difficult to get through to technical support, support service workers do not delve into the problem and try to quickly end the conversation, do not answer questions, use the same memorized phrases during negotiations, in addition, they pick up the phone at the workplace so that customers didn't bother with calls.

Clients of the Moscow region left negative feedback about Rostelecom, as the company did not conclude agreements with payment systems and terminals, which led to consumers incurring additional costs and experiencing inconvenience when paying for communication services. Unlike other telecom operators, Rostelecom does not activate home telephony services immediately after the payment is made, but only after three days.

Conclusion

A large number of negative reviews about Rostelecom are an alarming signal. Feedback from Rostelecom employees also reflects fears that the company is falling apart. It is extremely important for the company to take into account the opinions of ordinary employees, as they are the foundation of the organization.

The Russian telecommunications market is developing. In the future, the absorption of regional operators and small providers by larger corporations will continue. Companies that do not meet modern requirements, do not withstand competition, will either rebuild or disappear from the market.