In Russia, licensing reform threatens to force 93% of internet service providers to shut down

A new licensing reform in Russia threatens to force the closure of about 93% of Internet service providers, which will effectively lead to the monopolization of the market by large state-owned telecom giants loyal to the Kremlin. 

The updated rules and financial requirements are prohibitive for small and regional telecom operators, forcing them to cease operations entirely. 

Industry experts note that the strict criteria of the new licensing system were designed specifically to drive out independent players. Once small companies disappear, all internet traffic in Russia—especially in remote regions—will be controlled by just a few federal operators, who are under the full supervision of Roskomnadzor and Russian intelligence agencies.

This reform is the next step in building an isolated “sovereign internet” and will have direct consequences for end users:

It will become significantly easier for intelligence agencies to conduct comprehensive traffic monitoring and instantly block any undesirable or dissenting content through a few major backbone nodes.

The elimination of competition will deprive citizens of the opportunity to choose a higher-quality or more affordable communications service provider.

Market monopolization will inevitably trigger a sharp increase in the cost of internet services for the public, accompanied by a general decline in service quality.

Earlier, the Russian Ministry of Digital Development had already announced the development of additional technical and legal mechanisms aimed at strengthening censorship and tightening control over the country’s digital space.