World Dialogue on Regulation

According to a Prime-Tass report, Russia’s IT and Communications Ministry does not intend IP telephony providers to have special licenses, based on a draft of a list of communication services subject to mandatory licensing that the ministry plans to submit to the government this week.

The ministry had earlier proposed that IP telephony operators should obtain separate IP telephony licenses in addition to their data transmission licenses, which are all that is currently required to provide IP telephony.

“To provide these (IP telephony) services, operators will only need a telematics (data transmission) license as before,” IT and Communications Minister Reiman said.

Analysts speculate that the ministry had intended to license IP telephony to counter the migration of long-distance traffic from Rostelecom, which long enjoyed a monopoly on these services, to alternative operators. Svyazinvest had prevented its regional subsidiaries from developing IP telephony and thus compete with Rostelecom.

However, Svyazinvest recently reconsidered its policy and allowed its subsidiary CenterTelecom, a hub telecommunications operator in Russia’s Central Federal District, to issue the first batch of 10,000 IP telephone calling cards on Monday. Sibirtelecom and Southern Telecom, also subsidiaries of Svyazinvest, have also been developing IP telephony services.

According to iKS Consulting, revenues from IP telephony services in Russia exceeded US$ 110 million in 2003, including $60 million from calling card sales. Alternative operators control 93% of the IP telephony market in Russia.

Intelecon Research & Consultancy Ltd. 04/11/2004