📉 Number of Telecom Operators in Russia Drops 17% in One Year

Roskomnadzor explained that the primary reason for license revocations was a lack of active operations. The regulator, in cooperation with law enforcement agencies, has been systematically purging the telecom market of so-called “paper networks”—legal entities that hold licenses and spectrum allocations without building any infrastructure.

This mass exit of inactive market players was accelerated by regulatory and financial shifts over recent years:

• Resource Scarcity and Escalating Costs: Since 2024, state fees for telecom licenses surged more than a hundredfold (reaching up to 1 million rubles), making it economically non-viable to hoard unused licenses as reserves or for resale.
• Rigorous Audits: The regulator strictly enforces the two-year deadline to launch a network after receiving a license. If services are not deployed or if compliance requirements—including the installation of SORM wiretapping hardware and cybersecurity standards—are not met, licenses are revoked.
• High Barriers to Entry: Rising operational expenses and recurring regulatory contributions have rendered small regional providers unprofitable.

Industry experts emphasize that this dynamic does not signal a contraction of the telecom market itself; rather, it reflects the elimination of shell companies surrounding real infrastructure. However, analysts warn of growing consolidation risks. Under a planned Ministry of Digital Development reform, if a provider’s license is revoked, its infrastructure and subscribers could automatically be transferred to major national players. Experts estimate that new barriers could drive at least a third of providers off the market, with small operators in certain regions risking complete extinction.