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Russian Communications Ministry predicts further ICT sector growth

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MOSCOW, August 8 (RIA Novosti) - Russian communications companies will spend $4.91 billion of capital investment in 2005, 11% more than in 2004, and foreign investment in the sector will total $1.4 billion by the year's end, the Information and Communications Ministry said Monday.

Ministry experts expect the industry to maintain its current growth rates throughout the year. They predict that corporate proceeds from communications services will increase by 27.7% to $24.28 billion, with established operators to account for $9.79 billion. Communications services for the public will grow by an estimated 27.8% to $12.7 billion, with $4.33 billion to fall on established operators' share.

According to the forecast, three-quarters of the sector's aggregate incomes, about 70%, will come from telecommunications services, notably mobile phone services, expected to make up as much as 45% of the total.

The number of mobile phone users in Russia is likely to increase further, reaching 100 million by the year's end, as compared with 72 million at the beginning.

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