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.