**1. Introduction**

The economy and the society of the twenty-first century are functioning in the conditions of the rapidly developing telecommunication technologies. Their ubiquitous application accelerates

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

the economic development, contributes to higher living standards and welfare of the population, and creates new sources of competitive advantages for the enterprises, industries and national economies in general.

In the modern conditions, the telecommunications industry belongs to one of the most strategically important sectors of the Russian economy, performing the infrastructural function of ensuring the needs of society in the transmission of various kinds of information. Advanced development of the telecommunications is a prerequisite for creating of the business infrastructure and the favorable conditions for investment attracting, for solving of the employment problems.

"The Concept for the Development of the Telecommunications Services Market in the Russian Federation" (http://www.inforeg.ru) identifies the main segments of the telecommunication services market:


The Russian market of the telecommunication services reached a volume of 1672.0 billion rubles by 2015. According to data in **Table 1**, the share of the mobile communication services in the total volume of telecommunication services increases from 25.5 to 34.5% in the period of 2000–2015, gradually replacing the services provided by fixed telephones (from 53.9 to 11.7%, respectively). Even more clearly, this trend was manifested for services rendered to the population, for which the share of the mobile communication services increased from 26.6 to 54.8%, and the share of fixed communication decreased from 58.6 to 9.8%.

At the same time, the share of the mobile communication services has declined over the past 5 years in the total volume of telecommunication services from 43.8 to 34.5%, being replaced by Internet-based data services, whose share shows steady growth, reaching 16.1% by 2015.

The preservation of the described trends in 2016–2017 is confirmed by the results of a study conducted by the Analytical Research "Russian Telecommunications Market–2017. Preliminary Results" made by Agency TMT Consulting (http://tmt-consulting.ru). In this study is the following expanded structure of the telecommunications services market presented: mobile communications–55%, Internet access–12%, postal services–10%, fixed telephony–8%, pay

**Table 3.** The volume of telephone sets of public telephone network and mobile cellular subscribers in Russia (at the end

Mobile communication 25.5 42.9 43.8 34.5 Local telephone communication 21.9 16.0 11.7 7.8 Intercity, intrazonal and international telephone communication 32.0 11.9 8.1 3.9 Traffic connection …. 10.8 13.8 16.1 Other services 20.6 18.4 22.7 37.7

Customization of the Telecommunication Market Based on the Application of the Concept…

Mobile communication 22.6 63.8 70.5 54.8 Local telephone communication 26.5 17.8 11.4 8.2 Intercity, intrazonal and international telephone communication 32.1 9.7 4.8 1.6 Other services 18.8 8.7 13.4 35.3

Source: Calculated by "Transport and Communications in Russia". 2016: Stat.sb./Rosstat. – M., 2016. – 86 p.

**Table 1.** The Structure of the Russian telecommunications services market by main segment (the share in total volume, %).

Share in the total volume of services rendered to business and the public sector 64.4 46.8 44.6 46.9 Share in the total volume of services rendered to the population 35.6 53.2 55.4 53.1

**Table 2.** The structure of the Russian market of the telecommunication services by main types of consumers (share in

Source: Calculated by "Transport and Communications in Russia". 2016: Stat.sb./Rosstat. – M., 2016. – 86 p.

Number of telephones 29.9 31.4 28.9 26.8 The number of cellular subscribers 86.3 166.4 193.3 190.3 Source: Compiled by "Transport and Communications in Russia". 2016: Stat.sb./Rosstat. – M., 2016. – 86 p.

**2000 2005 2010 2015**

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http://dx.doi.org/10.5772/intechopen.79030

**2000 2005 2010 2015**

**2005 2010 2013 2014**

At present, the main providers of telecommunications services can be divided (with some degree of conventionality) into two groups, differing by the technologies used and by the set

TV–5%, inter-operator services–4%, others–6% .

*Total*

*Services rendered to the population*

total volume, %).

of the year, per 100 population).

of telecommunication services provided (**Table 4**).

It should be noted that over the past 10 years, the telecommunications market in Russia has reached its saturation. This process was due to two basic circumstances.

First, by the stabilization of the market structure in terms of the main types of consumers (see **Table 2**).

Second, by stabilization of the number of telephone sets of the public switched telephone network and mobile cellular subscribers (see **Table 3**).


the economic development, contributes to higher living standards and welfare of the population, and creates new sources of competitive advantages for the enterprises, industries and

In the modern conditions, the telecommunications industry belongs to one of the most strategically important sectors of the Russian economy, performing the infrastructural function of ensuring the needs of society in the transmission of various kinds of information. Advanced development of the telecommunications is a prerequisite for creating of the business infrastructure and the

"The Concept for the Development of the Telecommunications Services Market in the Russian Federation" (http://www.inforeg.ru) identifies the main segments of the telecommunication

• the mobile communication services, leading in the total volume of telecommunication services and characterized by a high level of competition in the conditions, on the one hand, of the steady growth of the number of Russian mobile subscribers (1.5–1.8 times per year) and, on the other hand, a steady decrease of the tariffs for the corresponding services;

• the local telephone services, whose operators concentrate their efforts on the attracting of

• long distance and international telecommunication services that are monopolized by Rostelecom in Russia, but the operators of other communication networks can use some

• the data transmission services (including the Internet), developing most rapidly compared to other segments of the telecommunications market in terms of subscribers growth and

The Russian market of the telecommunication services reached a volume of 1672.0 billion rubles by 2015. According to data in **Table 1**, the share of the mobile communication services in the total volume of telecommunication services increases from 25.5 to 34.5% in the period of 2000–2015, gradually replacing the services provided by fixed telephones (from 53.9 to 11.7%, respectively). Even more clearly, this trend was manifested for services rendered to the population, for which the share of the mobile communication services increased from 26.6 to

At the same time, the share of the mobile communication services has declined over the past 5 years in the total volume of telecommunication services from 43.8 to 34.5%, being replaced by Internet-based data services, whose share shows steady growth, reaching 16.1% by 2015. It should be noted that over the past 10 years, the telecommunications market in Russia has

First, by the stabilization of the market structure in terms of the main types of consumers (see

Second, by stabilization of the number of telephone sets of the public switched telephone

the most solvent customers, offering a wide range of modern services;

54.8%, and the share of fixed communication decreased from 58.6 to 9.8%.

reached its saturation. This process was due to two basic circumstances.

network and mobile cellular subscribers (see **Table 3**).

elements of the infrastructure of this company;

infrastructure development.

**Table 2**).

favorable conditions for investment attracting, for solving of the employment problems.

national economies in general.

2 Telecommunication Networks - Trends and Developments

services market:

**Table 1.** The Structure of the Russian telecommunications services market by main segment (the share in total volume, %).


**Table 2.** The structure of the Russian market of the telecommunication services by main types of consumers (share in total volume, %).


**Table 3.** The volume of telephone sets of public telephone network and mobile cellular subscribers in Russia (at the end of the year, per 100 population).

The preservation of the described trends in 2016–2017 is confirmed by the results of a study conducted by the Analytical Research "Russian Telecommunications Market–2017. Preliminary Results" made by Agency TMT Consulting (http://tmt-consulting.ru). In this study is the following expanded structure of the telecommunications services market presented: mobile communications–55%, Internet access–12%, postal services–10%, fixed telephony–8%, pay TV–5%, inter-operator services–4%, others–6% .

At present, the main providers of telecommunications services can be divided (with some degree of conventionality) into two groups, differing by the technologies used and by the set of telecommunication services provided (**Table 4**).


and the level of the developing countries by two-thirds (91). Every second Russian visits

Customization of the Telecommunication Market Based on the Application of the Concept…

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• a steady tendency to reduce the average price per minute, which dropped in Russia from 2.23 rubles to 0.38 rubles in 2004–2014, as well as tendency to reduce the average price of 1 megabyte–from 21.43 rubles (2006) to 0.11 rubles (2014), which complicates the task of

• shortening of the life cycle of technologies used in the telecommunications industry, leading to the need for substantial investment into the infrastructure changes at the threat of

• the sophistication of consumers requiring the high-quality service and attention to their desires from the mobile operators that offering essentially homogeneous products (in terms of minutes, SMS, megabytes). In these conditions, it is necessary to search for those sources of growth that will ensure the growth in revenue of mobile operators in the near future. To solve this problem, the authors consider promising the application of the concept of the

The basis for the formation of the concept of the telecommunication service product is a stable tendency to change the structure of the world economy in favor of the service sector. This major institutional change is accompanied by the fragmentation of the industrial monopolies into industrial and service components and leads to the complication of economic ties and relations in which the consumer begins to play an increasingly important role. Subjective assessment of the value of services and the technological achievements contribute to the individualization of consumption and as a response of producers to the needs of the market—to the customization of the production. The proposed concept of the service product allows to divide the value delivered to the consumer of services into its components and to orient

The service product is an independent service or a system that combines the material prod-

The expediency of linking services and goods in a service product is confirmed by modern trends in the development of the service sector. First, the provision of a number of services involves the consumption of certain goods, items of material nature. At the same time, many material objects are closely tied to the services and only to the services. To obtain a mobile communication service [5], the consumer needs to purchase a special device (phone, tablet, etc.) and a SIM card that will allow using the communication service. With the development

of technical progress, with the spread of high technology, this trend is increasing.

preserving the market positions of telecommunication services providers;

**2. Customization of the telecommunication market through the** 

**customization of the telecommunication service products**

Internet daily (https://issek.hse.ru);

loss of the market positions;

**2.1. The concept of the service product**

ucts and related services [4].

service organizations to strategic product innovations.

service product.

**Table 4.** The main types of the telecommunication service providers.

The data in **Table 4** confirm that the development of the telecommunications services market is primarily due to the dissemination of the new technologies [1]:


Despite the fact that the technologies provide continuous improvement of the quality of telecommunication services, the key aspect of the market interaction between producer and consumer remains the process of the telecommunication services providing.

A number of negative factors can be identified for the further development of the Russian market of telecommunication services [2, 3]:


and the level of the developing countries by two-thirds (91). Every second Russian visits Internet daily (https://issek.hse.ru);

