This project will form the world's first global satellite system of personal mobile communications. The present regulatory situation in Russian satellite communications encourages more active involvement of foreign partners. Given the current slow pace of network development and high market fragmentation, Russia is expected to face greater deregulation and competition due to its geography, which lends itself to satellite communications. The three most promising fields in the Russian satellite market are the manufacture of satellites, launch services, and infrastructure ground control. In addition to U.S. satellites, Russia also has sent up satellites for China, Germany, and Luxembourg.
Satellite services constitute a more profitable segment than satellite equipment.
It is estimated that the markup in the service segment is 30 to 35 percent higher than that in the equipment segment. Data transmission is expected to be the most requested satellite service. Maria Breiter covers telecommunications for FCS-Moscow.