Corbina-Telecom: Preliminary results of attempts to capture the Moscow broadband market

Exactly one year ago, Corbina Telecom has announced a fairly ambitious plans for mastering the Moscow broadband market. It was promised to gather journalists through the year and show results. We must pay tribute to the leadership of the company: collected and demonstrated. Despite the fact that the results have not all coincided with forecasts of a year ago.

Those interested can read our stuff a year ago, to compare the numbers and draw their own conclusions. Overall, the results are good, too: in 2006 the number of subscribers increased from 18,000 to 121,000 apartments (planned 180,000), connected to about 20000 households (scheduled to 27000). Senior Vice-President of Corbina Telecom Alexander Malis assures us that some behind schedule due solely to the so-called administrative difficulties. The essence of these "difficulties" was quite clearly stated: "The main obstacle to Russia's economy - the Russian official, who spit on the economy. His only care about how the process can be laundered. " Nevertheless, the main phase of construction of the Moscow Fiber Optic broadband network company is considered completed. Fiber-optic network Corbina Telecom length 4,500 km covered 97 districts of Moscow, and by the end of March 2007 is planned to connect the remaining 22 residential areas. By the end of 2007 it is planned to increase the number of subscribers to 300,000, and in 2009 to bring this figure to 500 000.

Financial profile of the project: The total amount of investments - 72 million dollars, of which 42 million in 2006, 25 million in 2007 and 5 million in 2008.

Statistics on the broadband market (according to Corbina Telecom ")

• Compared with 2005, the market of broadband access in Russia grew by 42%.
• In mid-2006 the number of broadband connections in Moscow increased by 63% to 800 000 (data J'son & Partners), each year the number of broadband users in the capital increased by 300,000 families.
• Today, more than 20% of Moscow households can take advantage of high speed internet in their apartments. Moscow remains the undisputed leader in Russia in terms of development of this kind of access to the Internet - it accounts for more than a quarter of all broadband connections in Russia. In the whole country in the middle of this year, high speed Internet access have only 3.5% of families.
• Among the technologies in Moscow, and Russia continued to lead Ethernet-connection, which uses 57% of subscribers.The share of ADSL account for 37% of connections, and through cable television network in the online out of 6% of Moscow households.
• According to forecasts J'son & Partners, the end of 2006 the number of home broadband connections are close to a million, and three years after high speed Internet access is already in every other metropolitan apartment.
• Broadband Market in Russia in 2007 could reach $ 1.5 - 1.7 billion (projected Department of Public Policy in the Information and Communication Technologies Ministry of information technologies and communications). Following 2006, this market is about $ 1 billion So, next year it could rise by 50 - 70%.
• Currently, the bulk of broadband connections accounted for the Moscow region (50% market share), but in regions that market grows, and as early as next year, the share of Moscow and the region will fall to 30% of all such connections in the Russian Federation.
• Leading broadband technologies today are connecting through Metro Ethernet and DSL (DSL technology to account for about 20% of broadband market in terms of money).

The fact that everyone is interested in the first place - the service plans and prices for broadband access. According to Alexander Malis, even in the company did not expect such a rapid decline in prices in just one year. More precisely, it is not about lowering prices, and to provide more bandwidth at higher speeds for the same money. Immediately striking an important feature of Corbina ": the list of tariff plans present range of tariffs with disabilities included traffic volumes, which can not but rejoice. Indeed, today, most providers offer unlimited Internet exclusively, preferring to limit the consumption rate of access. For the operators of this scheme is more convenient: the load on the network becomes more evenly, the probability of congestion during peak hours is reduced. Another important factor - the lack of complaints from users on low data rate. Subscribers Corbina "option is still there, although the tendency to transfer users to a limited speed NL is clearly visible. Obviously, even without a calculator: the last year of unlimited access speeds have increased fivefold, and the volumes included in the tariff plans of traffic - only two.

As in mobile communications, there is a tendency to reduce the average ARPU. However, the rate of reduction in revenue from average users are relatively low due to high input threshold: the majority of users connected to the unlimited TA, and here the minimum fee is $ 24 a month. Some areas of local networks sell much cheaper "entry ticket", recently came across a leaflet, which offers unlimited Internet for $ 4 per month. However, at a speed of 56 Kbps. On assurances Alexander Malis, in this field "Corbin" compete with the district lokalku not going as well as high quality and reliability, too costly. Quote: "" Corbin "is not dirt sells. Cheapo will not be high quality and profitable. "

A separate question - Broadcast television. In the "Corbin" were ready in early 2006, and 170 boxes were distributed to users for testing. Then the project was stopped. According to the vice-president Dmitry Malov, it was decided to wait for IPTV-solutions at Microsoft. Launch IPTV in the network "Corbin" is scheduled for spring of next year.The main advantages of the new solutions:

• Instant channel switching (instead of the usual in such systems a few seconds.)
• Thanks perezaprosu bad frame image defects ("crumbling" image) is virtually eliminated.
• Thanks to the support Mp4 high quality is ensured at speeds of 12.10 Mbps.

Interestingly planned approach to the structure of software packages. According to Alexander Malis, will focus on the development of Video on Demand, including in the form of traditional television viewing at a convenient time for the user. Quote: "TV stations want to tie people to the net, so it is more convenient to sell advertising. We want people to detach from the grid. " From advertising revenues, "Corbin" is not going to give up, but going to offer subscribers a choice: $ 5 for a standard function "Video on demand or $ 20 for the same thing but without the ad units.

Network hotspots Wi-Fi - out of a planned 1200 established until 146. A quote from the press release: "In parallel with the construction of an optical network Corbina Telecom in Moscow found 146 hotspots - access points through a wireless network Wi-Fi. Hot spots are working in commercial premises on the first floor of buildings (restaurants, shops, clubs, etc.). Users accessing an apartment high-speed Internet Corbina, will in 2007 to enjoy wireless connectivity throughout the city, without signing an additional agreement. "

The last question - the fate of the famous mobile network standard DAMPS and prospects for existing subscribers. For details, today refused to give, but the next year planned migration of subscribers to the network GSM. Target completion date of transfer - from March to October 2007.