Dear investors, This report will provide you with factual information on the importance of investing in the Telecommunications industry in Russia. Since 2006, the direct investments in Russia from external countries have increased a lot. It demonstrates that it is a strategic market in which the possibilities of development are significant. The total FDI in Russia represents 25% of the GDP. Thus, Russia stands first when compared to BRIC countries and Ukraine, regarding the number of foreign investments in the country per habitant. Currently, Russia is a strategic partner and if you want to be an active competitor on the market you may want to invest in Russia. A few points have to be highlighted regarding the main strengths of the market. Russia has a highly competitive mobile telephone industry, owing to a healthy competition between the country's main operators like MTS, VimpelCom and MegaFon. Huge amounts of money are being invested into the country's telecom sector, with operators looking to improve their services and networks.
[...] On the one hand, this lack is a burden for the Russian IT market but on the other hand, it represents a chance for potential investors, which shall concentrate on reducing the prices and on enhancing the quality and the quantity of the suppliers. From the following chart, you can see the efforts we are making in order to resupply the inadequate IT products quantity. It means that Russia really needs suppliers in the field of IT products. In addition, all the business may pay attention to the timing aim to gain more money in definite time. Our Russian government realized the demands of the investors, so the number of procedures required starting a business are really beyond your expectation. [...]
[...] If you want to take part in the Telecommunications industry changes, you should invest in Russia! You may ask why it is better to invest in our market than in the Indian one. It is true that we mentioned above, Russia stands close behind India but the Russian market will offer you much more opportunities and its expecting development will be much more interesting and provide significant competitive advantages for your business. Indeed, over the past years, India has strengthened its IT industry, and along with it followed the increase of labor costs. [...]
[...] This chart shows us that Russia remains behind Sweden in tax regulations points. This can be justified by the fact Russia is evolving in the transition 2 to 3 of countries stage of development. Using GCR data and ranking, it seems now more comprehensive that Russian tax regulations are improving to behave the same way of the top list countries and reach the third stage of countries development Political and regulatory environment The most problematic factors regarding environment component in Russia are linked with the political and regulatory environment. [...]
[...] Tertiary enrolment and availability of scientists and engineers Russia is enrolled into strong tertiary activities. Using GCR data and ranking, Russia is placed 12th where as India and China are ranked at the 98th and 81st place. It leads us to a higher capacity for innovation, awareness and the capacity to solve environmental, social and financial problems faced by our country. Plus, as we will see later, the availability of scientists and engineers is high which means that there already is in the country all the gray matter needed, therefore there will be no expensive costs of experts' expatriation for this investment. [...]
[...] Over the past years, India has strengthened its IT industry, and along with it followed the increase of labor costs. According to the GCR 2008-2009, Russia comes first on the Labor Market Efficiency, especially in and Productivity”. Taking for example the mobile telephone market as being a growing industry worldwide, it is an opportunity to seize for investors in order to insure long term profit. III- Readiness component A. Supportive education As mentioned, the Russian Federation has a high level in the educational system and provides a high quality of math and science education. [...]
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