moscow Is Completing the Construction of a Digital Ghetto

The ministry of digital development of the rf is developing a set of measures designed to transform the russian segment of the internet into an infrastructure fully controlled by the state. Instead of obvious blockades, there will be a slow economic and licensing crackdown which the average user will feel gradually: through higher bills, poor connectivity, and a lack of alternatives.

The central initiative is the introduction of charges for international internet traffic for mobile subscribers. The estimated rate is about $2 per gigabyte. Officially, this is presented as a change in the pricing model, but the real goal is to make the constant use of VPNs financially unbearable. The average active user consumes 25–30 GB per month, and if a VPN is constantly enabled, all of this traffic can be classified as international, even if the person is simply reading russian news or watching TV serials. The telecom operators themselves were technically unprepared for such a transition and requested a postponement until at least September 1.

In parallel, the rf’s ministry of digital development is pushing for a radical reform of the licensing system. The current 17 types of licenses are planned to be reduced to three, while sharply raising the financial thresholds to market entry. A basic license will require capital of at least $66,000, a universal license – about $400,000, and a general license – over $1.3 million. The current minimum authorized capital for a telecommunications operator in russia is approximately $134.

The consequences for the market will be devastating. Of the more than 4,200 active broadband operators, only a small fraction will be able to meet the new requirements. More than 90% of small providers – Internet companies, cable TV providers, and regional operators – will face the threat of liquidation or takeover. The market will consolidate around a few large federal entities, which effectively means it will come under direct state control.

Separately, there is discussion of banning the provision of telecommunications services by individual entrepreneurs and companies that have not installed SORM – a system for operative investigative activities that provides the fsb with direct access to subscribers’ traffic and data. Previously, up to two years were allotted for SORM implementation; the new rules may significantly shorten this period. The ministry of digital development is also pushing for the resumption of scheduled inspections of operators, despite the moratorium in effect until 2030.

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