Prague, 8 November 2007 – The total number of fixed Internet connections in Russia is expected to reach 16.6 million in 2011, more than doubling the number of connections at the end of 2006, which stood at 7.3 million. According to a recently published forecast by research house IDC, the year 2007 should see the number of fixed broadband connections surpass dial-up technology as broadband coverage widens and more broadband service providers bundle Internet access with video and voice.

“Service providers in Russia are demonstrating a high level of innovation, investing in the rollout of triple-play services over broadband, and utilizing a variety of Internet access technologies from FTTx to WiMAX,” said Joshua Budd, Program Manager Communications, IDC CEMA.

Moscow enjoys the highest Internet penetration of major Russian cities and regions at an estimated 42% of households connected in 2006. Historically, the bulk of Russia's Internet connections have been concentrated in Moscow and St. Petersburg. The two cities’ lead, however, has been diminishing as demand for Internet access picks up in the regions, particularly in the residential segment.

“The main challenge for Russian Internet providers is covering vast swathes of the country outside major city centers like Moscow and St. Petersburg,” said Joshua Budd. “Operators need to utilize alternative wireless technologies and invest in the rollout of new networks to supply connectivity to the population as a whole.”

IDC’s Russia Internet Access Services 2007-2011 Forecast (IDC#EW16P) provides a detailed analysis of the status and future development of the Internet access market in Russia. Actual data for 2006, combined with a forecast for 2007-2011, are provided for the country as a whole, and segmented according to Russia, Moscow, St. Petersburg, and Other Regions. Connection and revenue data are included. Data is further broken down by end-user and technology. End-user splits break down into consumer and business. Business connections are further segmented by company size.

For more information on IDC research, please contact Mikhail Novikov (mnovikov@idc.com, +7 495 739 2250).

About IDC

IDC Provides Global Research with Local Content
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com.

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