AK&M publishes sectoral bulletin issue 1427 devoted to communications

AK&M 17 June 2021 14:58 Issue 1427 of the bulletin " Branches of the Russian Economy: production, finance, securities. Communications" of AK&M Information Agency is published.

The volume of communication services provided to enterprises of all types of activities in April 2021 increased by 8.9% compared to April 2020, and compared to March 2021-decreased by 1.3%, amounting to 184.8 billion rubles. In January-April 2021, the volume of communication services amounted to 754.1 billion rubles, which is 9.5% higher than the result of January-April 2020. The volume of paid communication services to the population in April 2021 amounted to 116.3 billion rubles, remaining at the level of April 2020, and increasing by 5% against the previous month. The volume of communication services to the population in January-April 2021 decreased by 1.6%.

The first SIM cards with Russian encryption have been launched in Russia. At the end of May, Voentelecom started delivering the first SIM cards of this kind. The telecommunications operator is implementing this project together with IDX, which is responsible for developing services that will be encrypted on the card. S-cards with Russian cryptography, which are being tested by Voentelecom, allow for full identification of the user. SIM cards with encryption may become mandatory in the future with the development of 5G.

Foreign companies in the industry can be taxed to provide benefits for domestic companies. According to the plans that are currently being discussed in the government, foreign corporations from the field of digital technologies, including marketplaces, will pay 3% of the income that they receive from Russian users. The taxes received from foreigners will be used for benefits for domestic IT enterprises. At the same time, the Russian authorities are also considering another option, which involves joining the global tax system. In this case, international corporations will be required to pay a tax no lower than the globally established minimum rate. 

On June 1, the State Duma adopted in the first reading a bill obliging foreign IT companies with a daily audience in the Russian Federation of 500 thousand people to open their branches in the country. Within the framework of the draft law, IT companies are required to create a branch, representative office or authorized legal entity in Russia, register a personal account on the Roskomnadzor website, and post an electronic feedback form on their website for Russian citizens and organizations. Facebook Instagram, Twitter, TikTok, Google AdWords, YouTube, WhatsApp, Viber, Telegram, Steam, World Of Tanks may fall under this law. 

Read more about the results of the communication market in the issue No. 1427 of the monthly bulletin " Branches of the Russian Economy: production, Finance, Securities. Communication" of the AK&M News Agency dated June 16, 2021.