Rostelecom and TransTeleCom propose profit-sharing deals to absorb regional ISPs

Rostelecom and TransTeleCom have each drafted proposals aimed at smaller regional internet providers. Rostelecom's scheme would see these providers cede their lines, subscriber bases and technical teams to the national carrier, retaining just 30-40% of revenue and no longer bearing SORM surveillance expenses, payroll obligations, or contributions to the universal service fund. TransTeleCom's offer outlines a fixed virtual network operator (FVNO) structure, eliminating the need for a license and associated regulatory responsibilities while allowing the regional firms to keep the "last mile" and receive a share of earnings.

A source described the arrangements as strictly commercial and voluntary, but representatives of the small operators argue the deals would make them mere installers. Yaroslav Dubovikov of the Association of Telecommunications Companies warned that the terms effectively let Rostelecom take about 60% of the business without investment. The proposals come amid discussions by the Ministry of Digital Development about tighter licensing rules that could cost up to 50 million rubles, potentially leaving many regions without local providers.