Russia’s Ambitious Broadband Goal: Is the Progress Sustainable?

Abstract

In 2012, the Russian Federation announced one of the world’s more ambitious broadband Internet development goals: providing 80 percent of Russian households with ultrafast connection speeds - at least 100 megabits per second (Mbps) by 2018.1 That goal exceeds the current targets in Germany and the European Union, and it is about equivalent to those currently being pursued by countries with ambitious strategic broadband connectivity goals, including Denmark, Sweden, and the United States. As part of the effort to reach its 2018 target, the Russian government recently tasked Rostelecom - a largely state-owned enterprise and the dominant firm in Russia’s broadband market - with the responsibility of connecting 4 million people (about 2.8 percent of all households) in small, widely scattered settlements throughout Russia by installing 200,000 kilometers of fiber-optic cable providing speeds of at least 10 Mbps. The assignment is both a great opportunity and a huge challenge for Rostelecom and for the entire Russian broadband sector. What can Russia do to ensure Rostelecom’s successful completion of its specific task as well as the success of the broader 2018 target?