A mass exodus of telecom companies from the market has begun in Russia
The number of telecommunications companies in Russia is declining amid increased government oversight and new industry requirements. As of August 2026, there were approximately 10,700 organizations in the country providing wired, wireless, and satellite communication services.
Over the past year, the market has shrunk by about 6%—with approximately 700 companies exiting the market. One of the reasons cited is stricter regulatory requirements and rising costs for operators.
Overall, compared to August 2019, the number of operators in Russia has decreased by about one-third. Currently, another 461 companies are in the process of liquidation, reorganization, or bankruptcy, while only 327 new entities were registered between January and July.
Reasons for the Pressure and New Barriers to Business
The decline in the number of players is driven by new financial and technical requirements imposed by the authorities:
Expensive licenses: while the state fee was 7,500 rubles until 2024, it was subsequently raised to 1 million rubles, and this year three categories of licenses costing between 1 million and 50 million rubles were proposed;
Squeezing out small operators: There are plans to prohibit individual entrepreneurs—who account for one-third of the market—from obtaining licenses, as well as to introduce a requirement for authorized capital ranging from 5 million to 100 million rubles;
Mandatory FSB surveillance: Providers are required to connect to the System for Operational-Investigative Measures (SORM), which grants Russian intelligence agencies direct access to subscribers’ traffic, calls, and correspondence;
Revocation of licenses without trial: In the event of repeated violations of licensing conditions, licenses are to be revoked through an extrajudicial process, with beneficiaries barred from establishing new telecommunications businesses for 10 years.
This is being reported by Russian propaganda media.
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