IP-telephony in MGTS: nine days, victories and defeats

IP-telephony in MGTS: nine days, victories and defeats 14 December 2004 Moscow City Telephone Network (MGTS) has started to provide IP-telephony services, to the delight of many of his more than four million subscribers. Rejoice for long: after exactly nine days after this remarkable event became known to the resignation of Mikhail Smirnov, who held the post of general director of MGTS since the summer of 2003. A few days later about the new service has disappeared from the Internet site of MGTS on a dedicated phone answering machine says "service temporarily not available", and tariffs MGTS to international and domestic long-distance IP-connection is now only see visitors Mobile-Review. To paraphrase a classic: "Who is to blame and that done?"

The official part of

Quote from the official press release: An extraordinary general meeting of shareholders of the Moscow City Telephone Network has decided to appoint the company's CEO Alexei Valentinovitch Goltsova for five years. At the shareholders meeting, which was held in absentia on Jan. 31, 2005, was attended by persons of 88.573 per cent of the voting shares of the Company. For approving the candidacy Goltsova received 99.983 percent of the vote, took part in voting.

IP-telephony in MGTS: nine days, victories and defeats
Moscow City Telephone Network (MGTS) serves approximately 4.2 million subscribers. The telephone density in Moscow conforms to the European level: the 100 residents of the capital for more than 50 phones MGTS. On the web there are about 600 telephone stations, payphones network company has to date more than 18,000 vehicles. The share of MGTS Moscow fixed communication market is about 80%.

Background

On materials CNews: In 1998, control of MGTS has moved from the holding "Svyazinvest" to "Sistema Telecom". In Svyazinvest remained only company "Moscow International Toll Telephone (MMT), which mediates between MGTS and Rostelecom, and which in 2001 was included in the latter as a branch. In most Russian regions, local monopolists landline owned Svyazinvest and independent access to the network of Rostelecom. Accordingly, the share of their revenues from long-distance services is greater than the MGTS.

It is no secret that the bulk of Russia's international traffic is held by the Moscow telephone network, whose leadership is unlikely to suit the distribution of income from this extremely lucrative business. At the same time increasingly large chunks of the lucrative international traffic "eat off" alternative IP-operators.Commissioning of the so-called "transfer of voice information services" (IP-telephony from MGTS) could not be far-reaching consequences: MGTS received independent of Rostelecom's revenue and an additional article appeared on the promising market of VoIP as an operator, already has more than four million subscribers. Their future customers MGTS had to drag myself with both fronts, taking away part of the business of "Rostelecom" and alternative IP-operators. However, did not work - a daring maneuver ended with dismissal of General Director of MGTS.

IP-telephony in MGTS: nine days, victories and defeats

Advantageous position, which has not been able to take

Discuss the advantages of IP-telephony does not make sense, they are well known: the prices, once again prices and a minimal set of additional services. Shortcomings more, though more than reasonable prices make them accept

Low quality. Rather typical for IP-telephony three or four years ago. Recent years thanks to dedicated communication channels for money basically leveled and it was quite acceptable. Even for business negotiations, did not neglect to take advantage of many large companies.

Complexity with a set of numbers. Usually in addition to the access number required to dial pin-code, resulting in the number of additional digits dialed is approaching 20. Unpleasant.

Additional difficulties and inconvenience. Need to search for and purchase a calling card, the absence of the usual "Rostelekomovskoy" credit forms of payment for services.

IP-telephony MGTS most of these problems successfully addressed. The main thing is you can not think of balance and just pay for the incoming mail account. Convenience plus significant resource of confidence in the native network in Moscow allowed to enter the IP-unfriendly market with unusually high rates for the beginner to the distant relationship. And prices have been declared not really low, clearly targeted at those who will choose between MGTS and Rostelecom. A sign with the prices below, we had it with care to retain the short-lived days of service. Collectors of historical curiosities can download a graphic image of the entire prematurely defunct pages MGTS here (534 KB)

IP-telephony in MGTS: nine days, victories and defeats
In the opinion of the few who managed to popolzovavshis VoIP by MGTS, quality was good. Another was promised a monthly consolidated account + detail of negotiations, but to get it and failed: a new leadership MGTS so hurry to hide all traces of short existence services, which decided to "forgive" their customers all had time to accumulate debts of IP-telephony.

"The Star and Death of Russian IP-telephony?

All of these obscure simple subscribers merrymaking take place against a background of impending major changes in Russian legislation on the connection. The Government intends to adopt a regular in the n-times dtsaty revised draft of "Rules of accession of telecommunication networks and their interactions, and the essence of the changes made to the draft only know the authors of these same changes. Well, members of the government - may be - if you read before agreeing.In accordance with the first draft of an alternative IP-operators were to be assimilated to traditional. In this case they will likely need to obtain separate licenses for long-distance telephony services, and possibly to direct the traffic of telephone calls solely on the telecommunications networks of Rostelecom. With all its attendant financial implications for us. A lot of small IP-operators are unlikely to overcome administrative barriers arrayed, large likely incur substantial additional costs. Some pessimistic experts predict forthcoming demise of the entire Russian market, "People's" IP-telephony: the new licensing conditions will force the operators to drive all traffic through Rostelecom, but he did not hesitate to adjust prices so that the minute price for "alternativschikov" is not very different from "Rostelekomovskoy.

Results + forecasts

As shown by many years of experience in dealing with the State developed socialism and early (or already moribund?) Capitalism, any reorganization, change trains officials and redistribution of spheres of influence are recorded mainly on end-user. Bureaucrats, oligarchs and bureaucratic oligarchs in most cases continue to feel warm and fuzzy. With favorable conditions, long-distance communication more expensive, at worst - MUCH more expensive. In any case, "to strengthen vertical" power and telecommunications industry will become more manageable. At least it probably count on a Ministry of Communications. But it is well known that too high raised administrative barriers lead to results opposite to expectations. So could happen with IP-telephony: IP-small operators simply go into the shadows and stop paying taxes. It is ridiculous to hope that expensive equipment will dutifully thrown in the trash or sold for a penny.

IP-telephony in MGTS: nine days, victories and defeats
Victor Kaledin, CEO of Zebra Telecom

At present, even market participants do not have any idea about when and in what form will be accepted preparing regulations to the Law on communications. This, of course, creates uncertainty. But today the situation does not look catastrophic. On the one hand, IP-telephony as a technology will inevitably evolve, and this trend is unstoppable. It is understood by all professional communications, and regulatory framework in the end, should not become an obstacle to the development of this important market segment and will hamper development of law-abiding operators. After all, if the situation turns out to be different, it can turn into an act of God for the user. Law-abiding "white" companies will be forced to pass on his increased cost of services. Consumers have to choose between the services of the "white", but expensive, or services from the gray day "Companies that do not pay taxes, quality of communication that are not important, companies that do not invest in equipment.

On the other hand, today reviewed and optimistic scenarios for market development of IP-telephony. Thus, IP-telephony operator can not only create your own, but rented from its partners already existing points of presence, and can combine their resources with any operator of international communication. There are other options.In this situation, a strategic investment in IP-telephony can be a smart move.

Today, for our company, an important task is to attract strategic investments. This is due to possible changes in the market as a result of changes in the rules of regulation and the natural course of development of our company. Company Zebra Telecom and a half years ago reached the point of development, after which it becomes rational to attract strategic investors. Since then, the company conducts the negotiations with potential investors and exchanges with the necessary financial documents. In our opinion, among the operators of IP-telephony "Zebra Telecom" most ready for such investments.

In our company there are always projects that are of interest to strategic investors. However, I stress that the exchange of financial documents to potential investors does not mean a complete sale "Zebra Telecom". With investors to discuss different options for different stakes of existing and new shareholders in the company. Discussed and options for merging with other companies and receiving strategic investment in the joint structure. This is the normal long-term running workflow.