Russia's digital ministry eyes utility tariff rises as benchmark for telecom prices
In short
Russia's Ministry of Digital Development will take the planned rise in housing and utility tariffs as a reference point when assessing possible price increases by telecom operators, minister Maksut Shadayev said at the "Digital Solutions" forum on 8 October. He said mobile traffic in Russia has stopped growing, but operators must keep investing in infrastructure, including replacing foreign equipment with domestic equipment.
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Russia's Ministry of Digital Development will look to the announced rise in housing and utility tariffs when assessing possible increases in operators' prices for communication services, minister Maksut Shadayev said on 8 October. Speaking at the "Digital Solutions" forum at the national centre "Russia", he said: "We will look for a balance here. But utility tariffs set a certain bar. I think we will somehow take it as a starting point." According to Interfax, he was answering a question on what the ministry could do to balance operators' spending on developing the industry with the revenues they receive, and whether tariff growth should be limited. [ 1 , 2 ]
Shadayev said mobile traffic in Russia has stopped growing, but operators must keep investing in infrastructure, including replacing foreign equipment with domestic equipment. "It is very important for us that colleagues invest in Russian base stations," he said, according to Interfax, adding that with mobile traffic falling, "albeit locally so far", the ministry has to explain why operators need to keep investing. He listed the switch to Russian base stations, meeting requirements for critical information infrastructure and additional measures operators take to protect infrastructure facilities. TASS also reported the minister acknowledging that mobile traffic is not growing, while iXBT wrote that growth in mobile internet traffic has slowed and that data volumes are declining in some areas. [ 1 , 2 , 3 , 4 ]
At the same time, Shadayev said Russia has "very good tariffs and generally very good LTE coverage", with more than 90% of populated territory covered. He said mobile operators, like fixed-line operators, have obligations: all must provide LTE coverage in every settlement with more than 1,000 people and on federal highways, requirements they received when their frequencies were extended. [ 1 , 2 , 3 ]
Kommersant noted that utility tariff indexation is usually carried out on 1 July, but this year the government postponed it to 1 October, and payments rose by up to 22% depending on the region. iXBT cited the Economy Ministry's macroeconomic forecast, under which the average total utility payment may rise by 11% from 1 July 2027, by 8.6% from 1 July 2028 and by 7.6% from 1 July 2029. iXBT added that these figures are not set limits for mobile or fixed-line price increases, and that there is no talk yet of a direct link between communication and utility tariffs or of an approved size of increase. [ 2 , 3 ]
Why it matters
The minister's remarks point to the scale of possible increases in mobile and fixed communication prices, which he linked to operators' investment needs. iXBT noted that no direct link between telecom and utility tariffs and no approved size of increase have been set.
Key facts
- Minister Maksut Shadayev said the ministry will take the planned rise in housing and utility tariffs as a starting point when assessing possible telecom price increases. [ 1 , 2 , 3 , 4 ]
- Shadayev spoke at the "Digital Solutions" forum. [ 1 , 2 , 3 ]
- Shadayev said mobile traffic in Russia has stopped growing. [ 1 , 2 , 4 ]
- He said operators must keep investing in infrastructure, including replacing foreign equipment with domestic equipment. [ 1 , 2 , 3 ]
- More than 90% of Russia's populated territory has LTE coverage, according to Shadayev. [ 1 , 2 , 3 ]
- Operators are obliged to provide LTE coverage in all settlements with more than 1,000 people and on federal highways, obligations set when their frequencies were extended. [ 1 , 3 ]
- Kommersant reported that utility tariff indexation, usually held on 1 July, was postponed this year to 1 October, with payments rising by up to 22% depending on the region. [ 2 ]
Confirmed by several sources
- The Ministry of Digital Development will use the planned rise in utility tariffs as a reference point when assessing possible telecom price increases, minister Maksut Shadayev said. [ 1 , 2 , 3 , 4 ]
- Shadayev said mobile traffic in Russia is no longer growing. [ 1 , 2 , 4 ]
- Shadayev said operators need to continue investing in infrastructure, including replacing foreign equipment. [ 1 , 2 , 3 ]
- Shadayev said more than 90% of populated territory in Russia has LTE coverage. [ 1 , 2 , 3 ]
- Shadayev said the ministry will look for a balance on the question of communication prices. [ 1 , 2 , 3 ]
Still unclear
- How far mobile traffic has changed. Interfax, Kommersant and TASS report the minister saying traffic has stopped growing; Interfax also quotes him referring to a fall in traffic, "albeit local so far", while iXBT says growth has slowed and in some areas data volumes are declining.
- Whether telecom prices will be formally tied to utility tariffs or capped. Only iXBT states that there is no direct link or approved size of increase yet and that the utility forecast figures are not set limits; no document reports a decision.
- Whether operators will raise prices and by how much. The documents describe only a possible increase and the ministry's approach to assessing it.
What local media are saying
Timeline, local time
- Interfax reports Shadayev's remarks at the "Digital Solutions" forum. [ 1 ]
- Kommersant reports the ministry's pledge to seek a balance on mobile prices. [ 2 ]
- iXBT reports utility tariff growth may become a benchmark for mobile and fixed-line prices. [ 3 ]
- TASS reports the ministry may set utility tariffs as a benchmark for telecom tariffs. [ 4 ]