Internet in Russia and Ukraine - Part 1. General Information and Statistics

User BaseThe non-US and non-English Web segmentsthe local providers. Thus, only corporate clients can
have been boosted by a growing trend towards PCenjoy the privilege of broadband subscription.What
penetration and cheaper Internet access in the lastUsers are Searching for?Like Internet users
couple of years. The US share of the globalworldwide, the majority of Russian and Ukrainian
population online, once above ninety percent, is nowsurfers search the Web for information. A Yandex
under a quarter, while the number of Internet userspoll ( shows that about 24 percent searchers use the
who do not speak English at all continues toWeb for easy reference and over 15 percent use it
grow.The Asia-Pacific region remains a keyas a research tool. A further 12 percent of those
contributor to the increase in the number ofpolled said the Internet was a news source for them
non-English speakers on the Web, but the Russianwhile only 14 percent preferred online entertainment
Internet, aka Runet, demonstrates the acceleratedservices. An increase in personal consumption in
pace of development as well.The Russian language onRussia and Ukraine has made a positive impact on
the Web was represented by 2.7 percent in Marchthe regional Internet. Russians and Ukrainian are
2003, said Global Reach ( a consultancy that tracksincreasingly relying on the Internet in order to
non-English online populations. The share is quiteevaluate products or services before they make their
minor, compared to English with its 35.2 percent.final decision to buy, whether online or offline.
However, the growth rate of Runet is far moreCurrently, about 1200 online shops are listed in
exciting; the Russian Internet audience has tripledMagazin.ru, the largest Russian e-commerce
over the last two years, registering a 40 percentcatalogue, while CNews.ru ( reported last year that
increase annually. The February 2003 Report bythe total number of operational online shops in Runet
SpyLOG ( indicates that the total users who surf thewas 500 at the beginning of 2002. The most e-shops
Russian portion of the Internet have reached aboutare online outlets of bricks-and-mortar businesses, but
15 million, 60 percent of whom live in Russia andsome "pure" online stores have opened their virtual
seven percent in Ukraine. Moscow and St.-Petersburgdoors as well. Most notable are bookstores such as
account for 53 percent of the total Internet users inOzon, Biblio Globus and Books in Russia, and
Russia. Similarly, the Ukrainian Internet surveys revealBookshop, AzBooKa and Bambook in Ukraine. Despite
that the vast majority (70 percent) of Ukrainiana certain lack of high-quality online offerings in Runet
users live in Kiev, Odessa, Dnepropetrovsk, Kharkovand Uanet, surprisingly few Western sites offer the
and Donetsk, according to freenet.kiev.ua andproducts and services that need no customs
mct.kiev.ua as quoted in Kyiv Post Business March 20,clearance. For example, web hosting fees in Ukraine
2003.The Ukrainian user base grows as fast as itsare about two to eight times higher than those
Russian counterpart. The total Internet users insomewhere in the United States, but the service
Ukraine reached 2.5 million by year-end 2002, a 150providers abroad seem to be in no hurry to enter the
percent increase in a year, said the head of thelocal market. This is also true for e-books, especially
Ukrainian State Committee for Communications andon programming and computing.Spam and
Information Technologies ( Independent marketersSpamdexingDespite spam is still flourishing on the
confirm the recent trends on the Ukrainian Internet,Russian Web, unsolicited email messages in Runet are
or Uanet for short. For example, eRus.ru ( quotedfar less aggressive than the email marketing
GfK-USM, a marketing company, as stating that thecampaigns in the US, when a news subscriber may
regular Internet users in Ukraine accounted for 6.4receive bundles of advert mailings that are vaguely
percent of the total population (3.1 million of 48.4associated with his/her initial subscription.The more
million) in February 2003, and the number of thepressing issue for both users and search engines is
users who purchased products or services throughspamdexing, i.e. unfair tricks aimed at attaining high
the Internet was doubled when compared torankings in search engines. Searching Runet for a
February 2002.Internet Access and PricesDial-upparticular key phrase can give you dozens of mirrors
connection is the most common way of accessingand doorways. Some successful SE optimizers in
the Internet in both Russia and Ukraine. The UkrainianRussia and Ukraine openly advertise that their
dial-up users, for example, pay $0.1 to $2.0 an hourpromotion techniques are solely based on building
for Internet access, depending on an ISP, time ofdoorways or cloaking, which currently seems unwise
day and availability of callback services. The monthlyon the global Internet.The top Russian search engines
charge for unmetered access in Kiev currently rangesfight against spam in much as the most popular
from about $4 (midnight to 9.00 a.m. with no callbacksearch engines do worldwide. For example, Yandex
support) to about $40 (24-hour access via callbackand Rambler penalize websites for using unfair tricks
service). The callback service in Kiev will save youand encourage Runet users to report search engine
about $0.4/hour, an additional fee charged byspam. Many professional programmers and
Ukrtelecom for connection to the local telephonewebmasters also voice their concerns about
line.The broadband access is rather expensive, rangingspamdexing. Articles by A. Shkondin at ClubPro.spb.ru
from $40/month (IDSN, 64 K/s, 1 GB monthly data( provide some classic examples of how spammers
transfer) to $300/month (dedicated line, 64-128 K/s,play games with the Russian search engines and
unlimited transfer) with a set-up fee of $200 to 300,Internet surfers.
plus some hidden charges that are quite common for