Fitch: Rostelecom to spend most among telecoms firms on data law

MOSCOW, Jun 5 (PRIME) -- State-controlled operator Rostelecom will be the hardest hit by Russia’s data retention law will be the hardest hit in terms of expenses among the telecom companies, Nikolai Lukashevich, senior director, head of Russia/CIS corporates at Fitch Ratings, said on Tuesday.

“We’ve calculated how much the announced expenses account of the already voiced figures. According to our estimations, the data retention law will require an increase in capital expenditures for various operators by 14–23%, which is rather noticeable,” Lukashevich said.

According to Fitch, expenses on the law will stand at 2.5–3.3% of total revenue and 2.7–3.4% of revenue of companies’ services. On the whole, additional investment during five years for major mobile operator MTS will amount to 60 billion rubles; 45 billion rubles for mobile operator VimpelCom, including 6 billion rubles in 2018; 35–40 billion rubles for MegaFon.

“Rostelecom will have to bear the heaviest expenses,” Lukashevich said without giving any figures.

MTS earlier estimated its expenses on fulfilment of the law at up to 60 billion rubles during five years, and VimpelCom said it will need 45 billion rubles. MegaFon said it will spend 35–40 billion rubles.

Rostelecom said in May that it could need no additional investment in 2018 to fulfil the law as it has a lot of own data storage facilities.

The law obliges connection operators, both mobile and fixed-line, to store voice information and text messages for six months from July 1. Connection operators providing telematics services and data transfer services must fully keep users’ messages for 30 days from October 1.

(61.9290 rubles – U.S. $1)

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