Outreach to Space: Five-Year Presence of Tricolor and Eutelsat in the Russian VSAT Market

Satellite Internet, a joint project of Tricolor and Konnect, Russia — a subsidiary of Eutelsat S.A. — has been setting trends for the VSAT market for five years. Over this time the operator has managed to change the conscious of clients by proving that satellite Internet can be broadband and affordable and by providing access for residents of many remote regions of our country.

The service has been available for Tricolor clients since September 2016. The project was initially created for the business segment, but then became popular in the B2C market. A demand for the service among private individuals mostly increased because the operator adjusted the price policy and the offer became more affordable. Now clients can buy a set of receiving equipment at the price of 7,500 rubles instead of initial 40,000 rubles. Also, the operator launched cost-efficient tariffs for unlimited Internet with an option for speed choice based on different needs — up to 40 Mb/s. Such a speed is sufficient to upload websites, multimedia files and games quickly and for apps to work. Within five years Tricolor has managed to grow a share of private individuals in the entire VSAT market almost twofold — up to 31 %. This number is still growing.

Nowadays 92 % of the Satellite Internet service clients are private individuals that use Internet to work, study or view multimedia content. Some of them live in large cities and spend a few months in the countryside every year. Most of these clients reside in the Moscow Region. The service is also popular among the residents of remote regions with challenging climate conditions, where the satellite Internet is the only way to connect to the network. There is a high demand for satellite Internet in constituent entities of the Siberian Federal District and in the North of the country — in the Arkhangelsk Region, the Komi Republic, and the Khanty-Mansi Autonomous Area. Benefits of the Satellite Internet service have already been recognized by more than 13,500 clients all across Russia.

Tricolor continues to grow the share of clients in the B2B segment as well. This indicator has doubled since 2019: fr om 4 % to 8 %.

“We intend to grow this share up to 15–16 % within a year or a year and a half. In September we’ll launch a new corporate tariff line for clients with a committed bandwidth. It will allow connecting of up to 25 satellite terminals as per one and the same tariff”, says Daniil Nirman, Line Head of Satellite Internet.

With the Satellite Internet project the multiplatform operator carries out its social mission successfully. Thus, for example, Tricolor supplied 150 sets of receiving equipment to the schools of the Sverdlovsk Region upon the local authorities’ request. Teachers received an opportunity to use e-journals and show educational multimedia materials in class.

“Despite growing accessibility of Internet all across the world, quick access to Internet still remains a relevant issue in Russia. It largely accounts for the size of our country and a large number of hard-to-reach places. Within five years of its partnership with Tricolor, satellite communications operator Konnect, Russia (a subsidiary of Eutelsat S.A.) has become the most rapid-growing operator in Russia. We offer affordable terms for sets of receiving equipment, introduce new tariffs and develop a dealer network. We also intensify our work not only in the mass market wh ere a share of our connections is at least 80% of the total amount, but in the segment of services for business”, Dmitry Bronner, Konnect CEO, explains.

Two-way broadband Internet access in the framework of the Satellite Internet project is provided by satellites Express-AMU1 (Eutelsat 36C) and Yamal 601. The speed of a direct channel can reach 100 Mb/s, the speed of a reverse channel — 10 Mb/s.

Information about service provision and coverage areas can be found on the website — internet.tricolor.tv.

Tricolor is a multiplatform operator that develops a shared information space of entertainment and services for the entire family accessible from any device, anywhere, anytime. Along with TV that can be watched both via the satellite and in the Internet, the operator offers its clients cutting-edge digital services including online services, smart houses, CCTV monitoring and satellite Internet. At the end of Q2 of 2021, the total base of Tricolor amounted to 12.259 mln. households. Over 10.3 mln. clients use the HD compliant equipment.

Konnect, Russia (Eutelsat Networks S.A.) is the most rapid-growing satellite communication operator and a leader by the number of new connections to satellite Internet in Russia*. According to the data of ComNews Research, following the results of 2020, 59 % of the market growth fell on the sales of Konnect, Russia, a satellite communication operator with the greatest increment of growth *. The company is the Russian communication operator and a subsidiary of Eutelsat S.A. — a leading communication operator in Europe that ranks third among satellite communication service providers in the world. Satellite broadband access services under the Konnect brand are also provided in Europe and Africa.

* As per the data from the research by ComNews Research of February, 2021.