The Digital Development Ministry's plan to replace 17 existing telecom licenses with three new categories could eliminate regional internet providers in 27 Russian regions, according to Alexei Leontiev, director of the Association of Telecom Operators (ASTO).
The ministry proposes issuing basic, universal, and general licenses costing between 1 million and 50 million rubles. Operators would also face new minimum charter capital requirements ranging from 5 million to 1 billion rubles, as well as territorial coverage mandates.
Russia currently has about 4,700 operators, excluding major federal companies. Regional firms account for 45% of the broadband market, ASTO data shows. Of these, 21% have annual revenue below 100 million rubles, and another 36% below 200 million rubles.
According to a presentation by the industry association Rosteleset, only 7.6% of 4,220 broadband operators would fully meet the new conditions. About 80% of cable television operators would also fail the proposed criteria.
Rosteleset head Oleg Grishchenko said the impact would be felt most in small towns and villages, where local residents often run the operators. In cities with populations over one million, the requirement to cover 20–30% of apartment buildings is physically impossible for local providers, even in Moscow's private housing sector, he said.
The changes would hit hardest in Ukrainian territories occupied by the Russian army, where local providers dominate. Industry representatives warn of higher internet prices and reduced competition.
Leontiev estimated that reconnecting subscribers from closing providers could cost hundreds of billions of rubles. The Digital Development Ministry says no final decisions have been made and it is collecting market feedback. The ministry maintains the reform aims to keep only "reliable" companies in the market and improve service quality.