Internet spending rising in Russia

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December, the number of Internet users will rise to 9.8 million, 25 percent up from 7.6 million in June, J&P estimates.


MOSCOW — Russia’s Internet access and data transfer market continues to grow apace. In the estimation of J'son & Partners consultants, Russians spent $350 million in the first quarter of this year on Internet services, 55 percent more than in the same period last year. Internet spending in Russia is expected to rise to $1.5 billion by the end of this year.

Broadband access from home and mobile Internet services were particularly popular, the newspaper Gazeta reported. Demand for Internet services usually rises in autumn, when people return to their business and education activities after summer vacation.
At the same time, the auditorium of Russian websites is growing slower than in the previous year and a half. Attendance growth rate for Russia’s top three websites – yandex.ru, rambler.ru and mail.ru - dropped to 30 percent in the first half of this year, from 60 percent in 2003. But this won’t affect profits of Internet providers, with traffic volume expected to double in one year’s time. Analysts are also optimistic about mobile Internet business in Russia, expecting Russians to go online through their mobile phones in transport and at their dachas.

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