Russia to Force Failing Small ISPs to Hand Networks Over to Big Telecoms

The Ministry of Digital Development in Russia has drafted an initiative requiring all small internet service providers that lose their licenses to automatically transfer their entire network infrastructure and subscriber base to major federal operators. The official pretext frames the move as a guaranteed way to keep user connections uninterrupted.

Under the proposed blueprint, every telecom company in the country must sign a mandatory contract in advance with federal carriers. This agreement grants the giants a priority right to buy out the network if the original provider's license is revoked. For operators with more than 3,000 subscribers, refusing to sign this preemptive surrender pact will immediately trigger a ban on providing telecom services altogether.

The regulator is simultaneously overhauling the entire licensing regime, condensing nearly 20 specialized license tiers into just three: basic (cable TV), universal (broadband), and general (nationwide coverage). Individual entrepreneurs will be completely prohibited from running internet services, a hurdle expected to eliminate roughly a third of all small regional providers due to strict compliance costs.

Industry representatives have pointed out the obvious predatory mechanics. Dmitry Galushko, head of the regional telecom association AMOR, noted that transferring ownership, commercial usage, customer servicing, and pre-emptive buyout rights turns state licensing into a machine for asset redistribution. Meanwhile, Ekaterina Litvinova of consulting firm TeDo noted that under a single-license system, any compliance slip halts business immediately, while nationwide players face zero operational changes.

The long-term consequence of eliminating independent local players is an inevitable decline in service diversity, leaving consumers entirely at the mercy of a state-sanctioned telecom cartel.