PJSC Rostelecom is the largest player in the digital services market in Russia. Its activities affect all areas of the industry, and the number of users numbers millions. More than 70% of the company’s clients prefer to connect services in packages of two or more. More than 13 million Rostelecom clients use broadband Internet, and 10 million people use pay television.
In 2021, the organization underwent a rebranding.
Rostelecom develops innovative solutions in the areas of e-government, security in cyberspace, cloud technologies, healthcare, education, and housing and communal services.
Areas of work
State programs
More than 45% of the company is owned by the state. It provides television services to the government and implements several government programs:
- Bridging the Digital Divide (DDI). This program realizes the goal of providing rural residents with high-speed Internet. The company has connected more than 6,000 settlements with a population ranging from 25 to 500 people.
- Providing Internet to medical institutions. In 2021, more than 3,000 medical organizations connected to the Internet. This optimizes the use of computer technology in medical institutions and improves the quality of service.
Digital services
These include:
- Broadband Internet access. One of the main areas of work of the organization. Rostelecom has over 13 million subscribers.
- Pay TV. Of all users, 10.1 million people connect to interactive television. According to this indicator, the company occupies a leading position. Rostelecom is a co-owner, serving 19 channels, and in 2021 it created another television enterprise, Mediatelecom.
Broadband Internet access, million subscribers
Innovative products:
- Rostelecom is the largest operator developing data centers and cloud technologies. The total capacity is more than 5200 racks.
- The company leases resources of the National Cloud Platform. This service meets international requirements and guarantees a high degree of data protection. PJSC Rostelecom coordinates the work of cloud structures, organizes data centers, provides virtual desktop capabilities and the availability of applications.
- The organization has a telecommunications network to prevent cyber attacks and ensure information security.
- Rostelecom is creating a “Unified Biometric System” to recognize users remotely using biometric data. This will allow access to many services without the presence of the client. The platform is promising in many areas: medicine, education, economics.
- Geoanalytical service "RusGIS" is a platform for systematizing spatial data and a cartographic database.
- We have accumulated extensive experience in the field of remote video surveillance. The company organizes observation during elections and the Unified State Examination. The Smart Home project is actively developing, which allows home owners to monitor it from anywhere on the map.
- The Medicine project is divided into two areas. "Regional Medical Information System" allows you to automate information processes in medical institutions. "Central Archive of Medical Images. Teleradiology" automates diagnostics and radiology services, allows you to store and transmit data.
- Rostelecom develops solutions that allow the use of information technologies in education. This includes players with educational information, a service for school information and library centers, the concept of remote learning, and an educational content constructor.
Traditional services
The company provides landline services. However, its share is steadily declining. There are fewer subscribers and fewer profits.
Local fixed line, million subscribers
mobile connection
Rostelecom is one of the largest providers of cellular communication services. Its developments are used by more than 830 thousand subscribers. The company is working to create a unified communications service and management structure. He is a co-owner of Tele2 Russia. This operator serves more than 40 million subscribers in 65 regions of the country.
Information on the types of economic activities of PJSC "ROSTELEKOM" according to the Unified State Register of Legal Entities
OKVED Code TypeName of activity 61.10 Main type of activity Activities in the field of communications based on wire technologies 41.20 Additional type of activity Construction of residential and non-residential buildings 42.11 Additional type of activity Construction of roads and highways All types of activity 42.21 Additional type of activity Construction of utilities for water supply and sewerage, gas supply 42.22.1 Additional type activity Construction of intercity power transmission and communication lines 42.22.2 Additional type of activity Construction of local power transmission and communication lines 42.99 Additional type of activity Construction of other engineering structures not included in other groups 43.12 Additional type of activity Preparation of a construction site 43.21 Additional type of activity Electrical installation work 46.39 Additional type of activity Wholesale trade of non-specialized food products, drinks and tobacco products 46.49 Additional type of activity Wholesale trade of other household goods 46.90 Additional type of activity Non-specialized wholesale trade 47.11 Additional type of activity Retail trade mainly of food products, including drinks, and tobacco products in non-specialized stores 47.19 Additional type of activity Other retail trade in non-specialized stores 47. 9Additional activity: Retail trade outside shops, tents, markets 49.3 Additional type of activity Activities of other land passenger transport 49.32 Additional type of activity Taxi activities 49.4 Additional type of activity Activities of road freight transport and transportation services 55.90 Additional type of activity Activities for the provision of other places for temporary residence 63.11 Additional type of activity Data processing activities, provision services for posting information and related activities 63.11.1 Additional type of activity Activities for the creation and use of databases and information resources 63.11.9 Additional type of activity Activities for providing services for posting other information 63.12 Additional type of activity Activities of web portals 68.1 Additional type of activity Purchase and sale of own real estate property 70.22 Additional type of activity Consulting on commercial activities and management 71.11.1 Additional type of activity Activities in the field of architecture related to buildings and structures 71.12.1 Additional type of activity Activities related to engineering design, construction project management, construction control and architectural supervision 71.12.2 Additional type of activity Activities of the customer-developer, general contractor 71.12.62 Additional type of activity Activities in the field of metrology 71.12.7 Additional type of activity Cadastral activity 72.19.4 Additional type of activity Scientific research and development in the field of information security 73.20.1 Additional type of activity Research of market conditions 77.39.2 Additional type of activity Rent and leasing of others machinery and equipment not included in other groups| Registration information |
| Description PJSC ROSTELECOM (Moscow; TIN 7707049388) was registered on September 9, 2002 by the registration authority of the Department of the Ministry of the Russian Federation for Taxes and Duties in Moscow. The authorized capital of the company as of November 28, 2017 is RUB 8,731,408. Type of ownership of PJSC ROSTELECOM - Open joint-stock companies. Form of ownership of PJSC ROSTELECOM - Other mixed Russian ownership. Main activities of PJSC ROSTELECOM: activities in the field of communications based on wire technologies (61.10), construction of residential and non-residential buildings (41.20), construction of roads and highways (42.11). |
Industry
- 41 – Construction of buildings
41.2 — Construction of residential and non-residential buildings41.20 — Construction of residential and non-residential buildings
- 42.1 — Construction of roads and railways
42.11 — Construction of roads and highways
- 42.21 — Construction of utilities for water supply and sewerage, gas supply
42.22.1 — Construction of intercity power and communication lines
- 42.99 — Construction of other engineering structures not included in other groups
- 43.1 — Dismantling and demolition of buildings, preparation of the construction site
43.12 — Preparing the construction site
- 43.21 — Electrical installation work
- 46.3 — Wholesale trade of food products, drinks and tobacco products
46.39 — Non-specialized wholesale trade in food products, drinks and tobacco products
- 46.49 — Wholesale trade of other household goods
- 46.90 — Non-specialized wholesale trade
- 47.1 — Retail trade in non-specialized stores
47.11 — Retail trade primarily in food products, including drinks, and tobacco products in non-specialized stores
- 49.3 — Activities of other land passenger transport
49.32 — Taxi activities
- 55.9 — Activities for the provision of other places for temporary residence
55.90 — Activities for the provision of other places for temporary residence
- 63.1 — Data processing activities, provision of information placement services, activities of portals on the Internet information and communication network
63.11 - Data processing activities, provision of information hosting services and related activities
63.11.1 - Activities for the creation and use of databases and information resources
- 68.1 - Buying and selling your own real estate
- 70.2 — Management consulting
70.22 — Consulting on business and management issues
- 71.1 - Activities in the field of architecture, engineering and the provision of technical advice in these areas
71.11 — Activities in the field of architecture
71.11.1 - Activities in the field of architecture related to buildings and structures
- 71.12.1 - Activities related to engineering design, construction project management, construction control and architectural supervision
71.12.62 - Activities in the field of metrology
- 73.2 - Market research and public opinion research
73.20 — Market research and public opinion research
73.20.1 — Market research
- 77.3 - Renting and leasing of other machinery and equipment and materials
77.39 — Rental and leasing of other types of transport, equipment and materials not included in other groups
77.39.2 — Rental and leasing of other machinery and equipment not included in other groups
- 61.1 — Activities in the field of communications based on wired technologies
61.10 — Activities in the field of communications based on wired technologies
Income composition
The largest part of the revenue structure is occupied by broadband Internet access and wholesale services. The share of fixed telephony is declining, while television and cloud services are growing.
Optimization
As part of the optimization process, the company reduced the number of employees in 2014-2017. from 158 thousand people to 138 thousand. By 2022, it is planned to reduce this figure to 115-120 thousand people. Labor productivity should increase by 40%.
Criticism
Rostelecom has been criticized more than once by subscribers for the inadequate quality of services provided and high prices, and by competitors for violating antitrust laws.
Thus, in 2013, a dispute arose between the Rostelecom division in St. Petersburg and several operators who used a network of cable channels owned by the company. Several thousand subscribers of the operators ER-Telecom and VimpelCom were deprived of communications as a result of damage to cables during Rostelecom’s inventory and disconnection of illegal cable lines.
Economic indicators
Asset dynamics
Rostelecom's assets gradually grew from 2013 to 2021. 2021 saw a big growth spurt. This was due to the increased commitment of the organization.
Capital and liabilities
Revenue
As for the size of revenue, after the fall in 2014, it remained at a consistently low level for some time. Only in 2016 there was active growth, which continues today.
Net and operating profit
Net and operating income have remained flat in recent years. The same goes for cash flow.
Dividend policy
In the spring of 2021, Rostelecom changed its dividend payment policy. Now it pays out at least 5 rubles per share (at least 75% of free cash flow). Payments are made every year.
Owners and management
The largest shareholders of Rostelecom are the Russian Federation represented by the Federal Property Management Agency with a share in the authorized capital of 45.04% and in ordinary shares of 48.71%, Mobitel LLC with a share in the authorized capital of 12.01%, 10.49% in ordinary and 30.79% in preferred shares, Vnesheconombank with a share in the authorized capital of 3.96% and 4.29% in ordinary shares.
The share of individuals in the authorized capital is 6.11%, 5.25% and 16.68% in ordinary and preferred shares, respectively. The nominal shareholder is the non-profit organization NSD JSC with a stake in the authorized capital of 35.20%, 33.79% in ordinary shares and 52.49% in preferred shares.
As of March 31, 2021, the company's shareholder register included 153,800 participants.
The company's shares are traded on the MICEX-RTS and the London Stock Exchange. The current market capitalization is RUB 177.42 billion.
Managers
The board of directors includes:
- Anton Zlatopolsky, General Director of State Customs Committee “TV Channel “Russia”;
- First Deputy Chairman of Vnesheconombank Mikhail Poluboyarinov;
- Executive Vice President of Gazprombank JSC Alexander Pchelintsev (Chairman of the Corporate Governance Committee);
- Chairman of the Supervisory Board of Avtodor Group of Companies Vadim Semenov (Chairman of the Audit Committee, Independent Director);
- General Director of Otkrytie Holding OJSC Ruben Aganbegyan (Chairman of the HR and Remuneration Committee, independent director);
- Dean of the Faculty of Economics of Moscow State University. Lomonosov Alexander Auzan (Chairman of the Investment Committee, Senior Independent Director);
- General Director of the Russian Direct Investment Fund Kirill Dmitriev;
- General Director of VTB Capital JSC Alexey Yakovitsky (Chairman of the Strategy Committee, independent director);
- Deputy Minister of Communications and Mass Communications of the Russian Federation Sergey Kalugin;
- President of PJSC Rostelecom Mikhail Oseevsky.
The board of the company, headed by President Mikhail Oseevsky, consists of:
- Vice President Alexander Abramkov (director of the macro-regional branch "Center");
- Senior Vice President, Financial Director Sergei Anokhin;
- First Vice President Vladimir Kiriyenko;
- Vice President Dmitry Proskura (director of the Volga macro-regional branch);
- Senior Vice President for Organizational Development and Human Resources Galina Rysakova;
- Senior Vice President for Technical Infrastructure Alexey Sapunov;
- Senior Vice President, Chief of Staff of the President Anna Shumeiko;
- Melhorn Kai-Uwe.
Dangers for Minority Investors
These include:
- The Russian Federation has cheap cellular communications, and the coverage of the territory is quite high. Together with strong competition in the field of mobile communications and the Internet, these points limit the possibility of development of the industry. In addition, a significant share is still occupied by landline communications, the need for which is decreasing.
- Telecommunications are developing at a rapid pace. The company's management needs to quickly navigate the situation. Errors in defining strategy or late product development can lead to financial losses.
- The success of the company depends on the growth of loan rates and exchange rates.
- The majority of the organization is owned by the Russian Federation. It can build a development strategy without taking into account the opinions of minority shareholders.
How to find out your personal account login through Rostelecom technical support
In the most stalemate situation, when you do not have access to your email or mobile phone, you will not be able to recover this data yourself. Therefore, there is only one option left - contacting support.
The procedure is not the most complicated, but you will have to name a lot of data, so be prepared in advance. Dial the single support number 8 800 1000800, wait for the operator to connect, and report the reason for the call. Then be prepared to provide the following information:
- The operator services you have connected.
- Personal account number, which you will find in the agreement.
- Your full name.
- Passport data.
- Any data to which you can relink your account on the site.
Don’t expect direct delivery of your login and password from the operator. You will be reassigned to a new contact and given a temporary access code. After this, you can change your data at your discretion.
