Russia leads Europe's Internet user list

A Lastest News about Internet in Russia

Posted on: 31 Dec 2011

Russia is believed to be Europe's largest market by number of Internet users with over 50 million netizens, overtaking Germany and France.

Internet penetration in the country is on a steady and sustainable rise, with the number of users continuing to grow and providing a large market for connections and devices.

From a reading of demographic fundamentals, Russia will be retaining its leading position for some time, with the cumulative Internet user population expected to comprise half the country's 142.9 million population by the end of this year, according to government estimates.

Recent developments in Russia's e-commerce sector also confirm the trend. The widely-publicised IPO by the nation's leading Internet search engine, Yandex, on the US tech stock market NASDAQ last May raised US$1.4 billion.

That compares with the US$2.4 billion raised by the world's largest steelmaker and Russian firm Rusal in its Hong Kong IPO last year.

It's noteworthy that the less fancied Yandex features intangible assets but still produced a successful offering, while Rusal is dependent on huge natural resources.

Internet usage in Moscow, St Petersburg, Novosibirsk and other big cities approaches 100%, and there's already one fully Wi-Fi enabled region (being Krasnodar in South Russia).

By contrast, some regions either lack Internet connection or offer it at prices barely affordable to people living in remote areas. Furthermore, the country lags behind its European peers by Internet penetration to households.

The share of households with broadband connection across Russia reached 35% last year and is about to grow between 10% and 15% per year over the next two or more years, according to industry analysts.

Broadband Internet access is actively promoted by cable TV network operators, which frequently offer it is a bonus to subscription plans or at a tiny charge on subscription bills.

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Posted: 31 December 2011

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Russia leads Europe's Internet user list   By Hong Kong Trade Development Council (HKTDC)