Russia’s telecom market in 2025 is entering a strategic new phase centered on monetization, premium ARPU, and ecosystem growth. Following 2024’s emphasis on coverage expansion, operators are now refocusing on digital services, AI-driven personalization, and enterprise 5G.
The Russia telecom MNO market size is estimated at USD 16.43 billion in 2025 and is projected to reach USD 19.65 billion by 2030, growing at a CAGR of 3.64 percent during the forecast period of 2025-2030, according to the Mordor Intelligence report. The number of subscribers in Russia is expected to increase from 257.34 million in 2025 to 306.11 million by 2030, reflecting a CAGR of 3.53 percent.
The country’s four major players — MTS, MegaFon, Beeline, and Tele2 Russia — are leveraging cloud platforms, subscription stacking, and fibre integration to create long-term value across consumer and enterprise segments.
MTS leads the market with more than 81 million subscribers and a 31 percent share, according to its latest quarterly results. The operator continues to deepen ARPU through data-rich premium plans, OTT and gaming bundles, and integrated app subscriptions such as the “MTS More Than All” plan, offering unlimited calls and 100 GB of data. Between 2025 and 2028, MTS is investing over 22 billion rubles in its transport network modernization program, replacing foreign-made components, upgrading more than 12,000 network elements, and boosting capacity to 400 Gbit/s across 29 regions. A further 7 billion rubles has been earmarked for Moscow’s IT and telecom infrastructure by 2030, including a new data processing center and fibre expansion. MTS is also diversifying into AdTech and fintech, with IPOs planned in 2026 and MTS Bank aiming to triple active customers by 2027 through buy-now-pay-later and digital lending services.
MegaFon, with around 76 million subscribers and a 27 percent market share, continues to invest in both enterprise and consumer connectivity. In 2025, the company expanded LTE coverage in Moscow by 17.4 percent, improving median download speeds by 12 percent. It is also accelerating the rollout of enterprise private 5G and edge computing solutions designed for industrial clients and smart factories. By upgrading its network and combining telecom and ICT capabilities, MegaFon is widening its enterprise base while maintaining strong consumer penetration, driving upward ARPU momentum in both segments.
VEON-owned Beeline, serving 54.3 million users and holding 28 percent of the market, is capitalizing on urban network strength and digital monetization. The operator is integrating AI-driven upselling into its apps, launching new in-app upgrades, and developing gamified services to improve engagement and retention. Fibre broadband expansion remains a key pillar of its strategy to lift household ARPU. In parallel, Beeline continues to pilot commercial 5G networks that support next-generation digital ecosystem tools, consolidating its move toward a fully digital platform structure combining mobile, broadband, and identity-based services.
VEON Group’s capex intensity for 2025 is expected to remain within the 17-19 percent range. Capex, at USD 231 million for 2Q25, implies a capex intensity of 21.3 percent for the quarter and LTM capex intensity of 21.4 percent (+3.4 p.p. YoY, 18.3 percent excl. Ukraine) as VEON focused on enhancing network quality and supporting its digital transformation initiatives.
Tele2 Russia, with 45.9 million subscribers and a 14 percent market share, follows a value-centric model while deepening its digital footprint through synergies with Rostelecom. The operator recently acquired adtech startups Yabbi, Redllama, and Plazkart, expanding its portfolio into digital advertising and media. Alongside nationwide network growth and fibre integration via Rostelecom, Tele2 is advancing commercial private 5G offerings for enterprise clients, a step that will further diversify its B2B revenue streams beyond traditional mobile services.
Across the Russian telecom landscape, investment continues to accelerate. MTS, MegaFon, Beeline, and Tele2 remain the market’s backbone, while MVNOs like Yota, Sbermobile, Tinkoff Mobile, and Penny add competitive diversity. Public and private initiatives, including more than 70 billion rubles earmarked for local base station production and 5G infrastructure by 2027, signal sustained national commitment to digital sovereignty and innovation.
As 2025 unfolds, Russia’s telecom market is transitioning from network expansion toward full digital ecosystem integration. The focus has shifted to AI-driven personalization, subscription bundling, and cloud-based revenue models that blend telecom, fintech, and enterprise IT. The operators best able to integrate 5G, fibre, and digital platforms into cohesive service ecosystems are positioned to lead the next phase of telecom growth, ushering in a 5G-powered era defined by platform economics, digital identity, and smart industry transformation.
Fasna Shabeer
