Russian telecom giant Rostelecom offers smaller internet providers relief from surveillance costs. In exchange, it wants their customers — and most of their revenue.

Source: Kommersant

Russia’s largest nationwide telecommunications operators, Rostelecom and TransTeleCom, have begun offering small regional providers service agreements under which the providers would hand over their infrastructure and subscriber bases, Kommersant reported after reviewing the presentations.

Under Rostelecom’s proposal, regional operators would transfer their subscribers, communications lines, and technical support to the company. In return, they would keep 30–40% of revenue and no longer have to cover SORM costs (up to 15 million rubles a year), payroll (up to 16 million rubles a year), or contributions to the universal service fund (at least 1 million rubles a year). The proposal also promises to reduce their exposure to regulatory risk.

TransTeleCom’s proposal outlines fixed virtual network operator (FVNO) models. Under these models, regional operators would no longer need a license or have regulatory obligations. In return, they would receive a share of revenue and retain the “last mile.”

A source told Kommersant that the proposals involve “strictly commercial and voluntary” cooperation.

Representatives of small providers say that under these terms, operators would “effectively become installers.” Rostelecom used to “at least buy companies,” but now it is effectively offering terms under which it “takes 60% of the business” without investing anything, said Yaroslav Dubovikov, executive director of the Association of Telecommunications Companies.

In April 2026, reports emerged that the Ministry of Digital Development was discussing stricter requirements for telecommunications operators with industry representatives. Among other measures, the ministry proposed introducing three types of licenses that could cost between 1 million and 50 million rubles, depending on the category. The Association of Telecommunications Operators warned that the proposal could leave 27 regions without local internet providers.

At Meduza, we are committed to transparency about our use of artificial intelligence in the newsroom. The story you’re reading was written by one of our living, breathing journalists and translated from Russian using an AI model configured to follow our strict editorial standards. This translation process is the result of extensive testing and refinements to ensure our English-language coverage is timely and accurate. A Meduza editor reviews every draft before publication.

If you find any errors in this translation, please contact us at reports@meduza.io.

To read Meduza’s exclusive content in English, please subscribe to our newsletter.