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November 2019 www.intellinews.com I Page 3
government has been enthusiastic about developing cutting edge technologies, and
as much as RUB283bn ($4.4bn) has been earmarked for that in the state budget through 2024, according to communications ministry.
VTB and Rostelecom venture into the big data segment
While he provided no further details, the
report quoted anonymous market sources as saying that the two giants' project will focus on combining their consumer data and create user profiles.
VTB and Rostelecom plan to collect various data, including consumers' age, gender, purchase history and movements, to build an extensive data base. Possible uses for a data base of that kind could include the creation of algorithms for attracting and retaining customers or measuring their credit creditworthiness.
In the longer run, the two companies reportedly plan to create a platform similar to WeChat that would enable payments for goods and services with a mobile app for smartphones. That system is expected to be superior to existing instant payment solutions.
Currently, VTB and Rostelecom are not connected to each other, but VTB's sale of a 50% share in the mobile phone operator Tele2 to Rostelecom, scheduled to be completed by April 2020, will make the lender the owner of a 17% stake in the telecom giant.
Big data is one of the technologies that Russian companies and the government alike are enthusiastic about, as collecting as much information as possible about an individual would facilitate sending them more precise advertising and even political messages.
It's less clear at this point if private investors will be willing to pump their cash into the quantum computer segment.
However, for information to be meaningful, it has to come from a broader range of sources than just customer data collected by one or two companies. So, the two companies are apparently looking for partners.
Certainly, chances of getting data from companies already connected to VTB and Rostelecom, such as Tele2, the food retailer Magnit, an 18.3% in which is currently owned by VTB, Pochta Bank (VTB owns a 49.99% stake), Sogaz insurance company (VTB owns a 10% stake) and construction developer PIK (23.1% owned by VTB) are the highest.
However, companies with no connection to either VTB or Rostelecom are reportedly in negotiations as well, as in exchange for providing their customers' data, they could get access to
a much broader data base.
Vedomosti's sources named the broadcaster National Media Group, the Russian Post and the food retailer X5 Retail Group as the big data alliance's prospective partners.
Meanwhile, a similar alliance, although on
a smaller scale, already exists in Russia. It's centred around mobile phone operator Mobile TeleSystems (MTS), controlled by the Sistema group. For the last few months, the mobile phone operator has been collecting big data on its customers, as well as on those of MTS Bank, its electronics retail chain and entertainment services.
Analysis of big data has contributed to the fact that the number of loans issued by MTS Bank nearly doubled in April – June, year-on-year, MTS said.