The number of telecommunications operators in Russia fell by 17% between July 2025 and July 2026, leaving slightly more than 7,000 active companies. Concurrently, the total count of issued licenses dropped by 17%, now standing at over 21,000.

Regulators attribute this decline primarily to the expiration of licenses held by entities that failed to provide actual services. These so-called paper networks possess permits but lack infrastructure and subscribers. According to Yaroslav Dubovikov of the Association of Communications Companies, operators have a two-year window to launch services post-licensing before facing potential revocation.

The Ministry of Digital Development is preparing a licensing reform that could lead to the automatic transfer of infrastructure and subscribers from revoked providers to federal operators. Industry participants anticipate further market consolidation, noting that at least 33.2% of companies could potentially exit the sector.

Market conditions are further complicated by rising costs and stricter regulatory oversight. Since 2024, the price of obtaining a license has increased more than 100-fold, effectively turning these permits into a scarce and expensive resource for market players.