The two federal operators are offering regional providers 30–40% of revenue in return, according to the presentations reviewed by Kommersant. The proposals also zero out the providers' spending on SORM — the system used to comply with Russia's surveillance requirements — which runs up to 15 million rubles a year, payroll costs of up to 16 million rubles a year, and contributions to the universal service reserve of at least 1 million rubles a year. The operators present the arrangement as a reduction in regulatory risk.
TransTeleCom is pitching a different structure: the FVNO model, or Fixed Virtual Network Operator. Under it, regional providers would not need a license and would carry no obligations to the regulator. They are promised a percentage of revenue and retention of the "last mile." The company said the model means lower costs for SORM and other regulatory requirements for operators.
A source told Kommersant the proposals describe cooperation that is "exclusively commercial and voluntary." Rostelecom confirmed it is already discussing the model with several operators and called the projects mutually beneficial. It added that it had launched similar schemes with MegaFon, T2 and MTS.
Representatives of small providers called the terms unfavorable. In their words, under such conditions operators "effectively become installers." Yaroslav Dubovikov, executive director of the Association of Communication Companies, noted that whereas Rostelecom previously "at least bought companies," it is now essentially offering terms under which it "takes 60% of the business" without investment.
According to TV Rain, the offers stem from a pending communications reform that would tighten requirements on operators. In particular, the Digital Development Ministry wants to introduce a minimum network speed requirement and to revoke licenses without a court order for repeat violations. The bill could reach the State Duma before the end of the year.
In April it emerged that the Digital Development Ministry was discussing stricter requirements for communications operators with market participants. The ministry proposed, among other things, introducing three types of licenses with acquisition costs ranging from 1 million to 50 million rubles depending on the category. The Association of Telecommunications Operators warned that the initiative could leave 27 regions without local internet providers.