Mobile service provider "Sbermobile" expands its coverage to the Crimean region
Sber's Mobile Venture Expands: Sbermobil Launches Services in Crimea
Starting May 29, Sberbank's virtual mobile operator, Sbermobil, enters the Crimean market, aiming to connect approximately 240,000 residents, representing 10% of the population. The operator will function on the Miranda-media network, which is partially owned by Rostelecom. Moreover, tentative plans to extend services to the DNR, LNR, Zaporizhzhia, and Kherson regions have been disclosed, although further details remain undisclosed.
Initially launched in 2024, Sbermobil initially planned to enter the Crimean market by the end of 2024, according to previous announcements. However, the collaboration with local operator K-Telekom did not materialize due to disagreements over terms. T-Bank's T-Mobil announced similar intentions, though no official responses have been received regarding their progress.
In total, 23 Sber branches in Crimea will house the operator's subscribers, offering the same rates available elsewhere in Russia. Alongside traditional SIM cards, eSIM services will be accessible to Crimean residents.
MVNOs, or Mobile Virtual Network Operators, accounted for 4% of the mobile market share in 2022, with 10 million active SIM cards and revenue totaling RUB 38 billion. Revenue for MVNOs grew by 17% in 2023, owing to the integration of banking structures in telecom operators. Yota captures 40% of the MVNO market, followed by T-Mobile with 27%, and RTC with 15%. Sbermobile holds a relatively smaller 6% share.
Following the departure of Ukrainian operators in 2014, domestic operators like K-Telecom and Miranda-Media commenced operations in Crimea. Emerging MVNOs could carve out a significant share of the market due to their ecosystem offerings, lower pricing, and minimal competition. Despite equal operating conditions, each MVNO will aim to capture its targeted market share, depending on its resources and strategy.
Yet, the expansion of MVNOs into regions like DNR, LNR, Zaporizhzhia, and Kherson presents unique challenges owing to their geopolitical status, infrastructural complexities, and regulatory landscape. Further insights into the specific conditions in these regions are required to understand the feasibility of MVNO operations.
In summary, Sbermobil's foray into the Crimean market represents a significant step for the virtual mobile operator, with ambitions to further penetrate other regions in the future. The opportunities and challenges associated with MVNOs in Russia and its surrounding areas warrant continued observation as the market evolves.
Alexei Zhabin
[1] Global MVNO Market to Grow Exponentially, Reaching Up to USD 142.9 Billion by 2033 [2] MVNOs Gaining Momentum in Developing Markets such as Russia [3] Russia's Telecommunication Services Market Scenario [4] Report: Mixed Trends in Russia's Communication Services Market
In the evolving landscape of telecommunications, Sberbank's venture, Sbermobil, seeks to expand into other regions beyond Crimea, including the DNR, LNR, Zaporizhzhia, and Kherson. This move, if successful, could significantly impact the finance, technology, and industry sectors.
The growth of Mobile Virtual Network Operators (MVNOs) in Russia, such as Sbermobile, is propelled by the integration of banking structures in telecom operators, contributing to a revenue increase of 17% in 2023. The future of MVNOs in Russia, particularly in geopolitically complex regions, presents both opportunities and challenges that warrant close observation.
