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The Yarovaya Law forced Internet providers to raise prices

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The Yarovaya Law forced Internet providers to raise prices
May 30
09:00 2018

Everyone has heard about the so-called “Yarovaya law”, but until now Russians almost did not feel pressure on their wallets.

Since July 1, 2018 Russian Internet providers will be forced to store user data, call records, correspondence and a browser history of their customers for a certain period of time. On this basis, representatives of some companies announced an increase in prices for Internet services. It is assumed that prices will rise by about 8 – 10%.

To meet the requirements of the law, companies now need to invest in modern systems of personal storage area networks  and annually increase their storage volumes by 15%. The stored information will be available at any time to the state security agencies.

The equipment for creating archives is quite expensive. Therefore, smaller players in the market will have to invest tens of millions of rubles, while large players, in turn, must be willing to shell out for a few billion.

The St. Petersburg provider LLC Telecompass, which operates under the brand “Comfortel”, informed its customers about the increase in the cost of tariffs by 8%. The company’s official statement says that in order to match the new law, which will enter into force on July 1 this year, the company needs to invest about 60 million rubles in new equipment.

One of the main participants in the Russian market Dom.ru, which occupies 11% of the total Russian Internet market, also announced a price increase by 10%. The company intends to invest in technologies more than 50 billion rubles.

According to the Internet ombudsman Dmitry Marinchev, most of the companies are likely to raise prices for the cost of their services. Smaller players of the Internet market will probably exit it.

Earlier, experts warned about the increase in prices for communication services in connection with the new law. Unfortunately, it’s up to them to pay for the desire to spy on their customers.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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