Mobile Internet Restrictions Impact Small Businesses in Russian Regions

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Preview Mobile Internet Restrictions Impact Small Businesses in Russian Regions

Mobile internet services are currently unavailable in several cities and regions across Russia, with some areas experiencing outages for multiple days. Authorities cite security concerns as the reason for these restrictions. The lack of connectivity is significantly impacting the operations of taxi services and independent retail stores, prompting residents to increasingly rely on cash transactions.

How are businesses in various regions coping with these mobile internet limitations? In Krasnoyarsk, for instance, the internet has been down for four days. Regional Governor Mikhail Kotyukov stated that these restrictions were imposed to enhance security measures. Tyumen Oblast has experienced similar restrictions since Thursday, also attributed by authorities to citizen safety. Residents of Sverdlovsk Oblast recently reported widespread connectivity issues on social media. It`s important to note that these issues specifically concern mobile internet; voice calls and SMS services remain operational.

Lina Emmerikh, a designer from Barnaul, shared her experience, noting that she recently signed a contract for wired internet in her office, a step she hadn`t considered just a few months prior. On Monday, the press service of the Altai Krai governor announced that mobile internet would be temporarily slowed, or even fully disconnected, in certain locations in the coming days due to «changes in the operational situation and the prevention of network threats.» However, Emmerikh states that disruptions have been occurring for quite some time. Now, she drafts projects in her office and then travels to friends` places to send them to clients.

“The most frustrating part is when you have to send information from the office. What happens for me is I draw up a project in my office, then I transfer everything to a flash drive, drive a few streets over to a friend`s office, and send it from their computer via email. That`s how it gets to the clients. With my phone, I can`t access WhatsApp or email; my connection even drops periodically.”

Asked about the cost of wired internet, she added: “In March, I checked, and it was free. Now, it`s paid. I`ll pay 3,000 [rubles] for the technician`s visit, 3,000 for the Wi-Fi modem itself, and 1,900 for the monthly subscription.”

Taxi driver Alexander Mamykin, who specializes in interregional transport, lives in Tetyushi, Tatarstan, where he reports stable internet service. However, he frequently travels to Ulyanovsk Oblast and Chuvashia, which experience intermittent outages. To mitigate this, he now consistently exchanges phone numbers with passengers in advance. For navigation, he has downloaded offline maps. For payments, he requests transfers immediately upon departure or asks passengers to have cash on hand.

Alexander Mamykin, Taxi Driver: “One time, both my passengers and I were unprepared for such a situation, and we had to run around the city looking for an ATM, asking passersby where to find one, and withdrawing cash at the nearest available spot. Now, I warn people in advance that transfers should either be made in Tatarstan, where there`s internet, or they should carry cash. As for ATMs, I`ve downloaded a navigation app, so that`s no longer an issue.”

For residents of Balashikha, a city in the Moscow Oblast, calling a taxi has become difficult. According to local reports, finding a ride through aggregators can take up to 20 minutes, with most orders being picked up by Moscow-based drivers, suggesting local taxi drivers might not even see the requests. Local businesses have adapted: marketplace pick-up points have installed Wi-Fi, and small shops selling fruits and vegetables now either request cash or tell customers, “You can transfer the payment once you get home.”

A similar situation is observed in Tula. A week ago, complaints about mobile internet outages, amidst continuous UAV attacks, were discussed at a meeting with the governor. The region is installing new Wi-Fi hotspots. However, local residents are already re-accustomed to carrying cash. Card payments are only possible in chain stores, according to Tula resident Lyudmila.

“There’s a sign right on the store saying `Cash Only,` so you have to go to the bank, withdraw money from an ATM, and then go shopping. That`s the only way. But major chain stores like Pyaterochka and Magnit are still operating normally.”

Krasnoyarsk faces one of the most challenging situations, with mobile internet down for over four days. Taxi fares have increased significantly, and some drivers cannot connect to aggregators. On public transport, card payments are only possible on electric buses equipped with Wi-Fi. Some restaurants are implementing situational marketing, inviting customers for coffee and free internet access. Others, facing a decline in patronage, are quickly switching their payment terminals to Wi-Fi. While these issues primarily affect small businesses, as larger players typically don`t rely on mobile internet for acquiring, consumers in both hospitality and retail often struggle with things like accruing loyalty program points. Taisiya Golubeva, Director of External Communications for the «Baton» and «Krasny Yar» retail chains, commented:

Taisiya Golubeva, Director of External Communications for «Baton» and «Krasny Yar»: “The presence or absence of mobile internet doesn`t affect the operation of our cash registers. However, some customers do experience payment difficulties because they are accustomed to using QR codes for transactions, which require mobile internet. There are also issues with mobile applications, including our loyalty program. But generally, these are manageable situations that are resolved on the spot in 90% of cases.”

Internet restrictions are also affecting hotels, particularly in remote areas where fiber-optic cable installation is challenging. Tourists desire constant connectivity and internet access even while on vacation. Posing as a client, we called the boutique hotel «Usadba po sledam Onegina» in Pushkinskiye Gory, Pskov Oblast – a region that has experienced periodic mobile internet limitations for two months.

“Things are getting sadder and sadder with mobile connectivity. When helicopters take off in Ostrov, the internet gets shut down. We don`t have fiber optics; our Wi-Fi is through mobile signals, meaning we have separate amplifiers and all that setup, but it still relies on mobile internet.”

Many challenges are alleviated by Wi-Fi. However, security concerns arise even with this solution. Public Wi-Fi networks are easily hackable, and fraudsters are adept at creating fake hotspots that mimic legitimate ones. Even with a home network, doubts persist: what will someone do online if you`ve given them your password? One listener reported that mobile internet disruptions have been ongoing for a month in the lower part of Nizhny Novgorod. They cited an example where a friend was returning a washing machine; the courier needed internet to confirm the request and asked for the Wi-Fi password. The friend ultimately decided to create a guest network.