Yarovaya Law the huge opportunity for Telecom

Yarovaya Law the huge opportunity for Telecom


This law in simple words is called “anti-terrorist” law. It was adopted on July 1, 2018. a new “anti-terrorist” law takes effect requiring telecommunications companies to store user data and make it available to Russian law enforcement. According to the newspaper Kommersant , the data center that will hold all this information has already been constructed and tested. Located in Nizhny Novgorod, the center was created by Rostech, the “Citadel” holding company, and the National Computer Corporation. The so-called “Yarovaya law” says companies have to store all clients’ voice records for six months all clients’ electronic correspondence for three months. Operators must store telephone conversations, text messages, images, sounds, videos and other electronic messages of users.
The law arises the interests of many big companies. And it opens new opportunities for Russian Market. Looking at the measurements, one can see how expensive this packet costs for the companies. Let’s see! … Three of Russia’s biggest telecoms (MTS, MegaFon, and VimpelCom) previously estimated that compliance costs would run them a total of 100 billion rubles ($1.8 billion) in 2018 alone. The government’s latest estimate is that each company should expect to spend no more than 30 billion rubles ($532.2 million) over the next five years.
However, though all these high costs, the law has positive sides also, including the opportunities of new Russian businesses. Recently, Chinese Huawei and the developer of systems for the "Yarovaya Law" Norsi-Trans announced the creation of a joint production of servers in Russia. Partners expect that after localization this equipment will receive domestic status. One of the potential customers for such products may be the MTS Group. The production itself will be localized in Russia on the basis of Norsi-Trans.
“The main goal is the complete localization and obtaining the status of domestic equipment” Said general director of Norsi-Trans mentioned
Besides from all these continuous developments of telecom businesses in Russia, theres is a huge opportunity for equipments suppliers get more profit due to this law.

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