Russian Content Writing

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Three major trends fueled Russian telecom development in the year 2006! Liberalization of the long distance telecom marketplace and introduction of brand new operator interconnection regulations, broadband access to the internet as the new leading marketplace segment, and the forthcoming issuance of 3rd production permits amid 100 percent cellular sector penetration and value added solutions sector growth. Fixed line operators may further diversify their solutions, particularly among broadband and convergent services. The mobile sector will feature raising competition for subscriber loyalty, offering hefty VAS content as operators distribute 3G networks. Cable TV, broadcasting, and satellite operators may accentuate content and expand their offerings to readers.From the year 2006, in accord with the Russian Minister for Information Technologies and Communications, the entire ICT Marketplace surpassed $40 billion. Rostelecom, the national company and dominant player on the extended distance telecom marketplace, awakened into a brand-new competitive reality the market was liberalized. In fact, over 20 new operators obtained licenses to offer long distance and international communication services. Participants estimated that the Russian long distance telecom market size at $1.9 billion to $2.1 billion from the year 2006. A brand-new operator must have a national network and an arrangement with regional operators for their last mile link.

New interconnection regulations split operators to 3 main levels: local, zonal, and long distance. Long distance operators now have to connect to end users only through regional operators and pay interconnection fees for each call. With more than 40 million readers, Rostelecom accumulated 60 percent of the market, whilst smaller operators, including Internet protocol suppliers and gray market operators, fought for the rest. In January 2007, Golden Telecom, among the largest alternative telecom operators, launched solutions. GT remains upbeat, anticipating grabbing some 20 percent of the market share by 2008 and estimating that the market will exceed $4 billion.

Russian regions outside their more mature St. Petersburg and Moscow markets demonstrated raising consumer and corporate spending assurance as broadband Internet use skyrocketed. More than 20 Russian operators joined MTU Intel along with other market leaders in providing video solutions. Long distance and cellular operators reported that only in the 3rd quarter of 2006 fixed operators earned some $14 million. Lastly, fixed operators Overlapping alternative operators from their traditional spheres of influence, access to the internet, and cable TV market sectors, offering an entire range of new competitive services. Russia’s incumbent telecom operator, SvyazInvest Holding, may likely not be privatized until 2009. In the year 2006, the Russian cellular market became the 3rd largest in their world by number of readers and revenue, after China and the US. Major cellular operators faced saturation and increased spending on marketing and growth of VAS services.

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