The modem has been severed from its connection to the United States.
In the realm of telecommunications and digital services, two global powerhouses, the United States and Russia, present distinct landscapes.
The USA, a frontrunner in this domain, is witnessing a rapid evolution in its telecommunications infrastructure. With 5G subscriptions projected to surpass LTE by 2025, the country's mobile sector and internet of things (IoT) growth are driving this advancement. Although cable modem remains dominant, it is gradually losing ground to fiber optics and fixed wireless access. The US entertainment and media sector is also expanding robustly, with revenues expected to grow at 3.7% annually through 2029 [4].
In contrast, Russia's telecommunications landscape is marked by increasing government control. For instance, popular audio call services like WhatsApp and Telegram have been restricted since August 2025, pushing users towards domestic messaging apps with fewer advanced features [1].
When comparing the IT market size, the Russian IT market accounted for about 1.94% of GDP in 2023, smaller than the US (approx. 4.8%) and the EU overall (5.8%). However, Russia's IT industry shows forecasted growth of about 13% per year till 2030, driven by import substitution and domestic product maturity [2].
Despite Russia's comparatively lower digital market penetration and IT sector development, the digitalization of services plays a significant role in the country's economy. More than 80% of the Russian population has an account on Gosuslugi, a digital service providing a wide range of services [1].
The pandemic has led to a significant increase in public trust in digital services in Russia, while in the USA, the iconic "dialing" and modem hum associated with dial-up internet is fading away, as this technology is being phased out [3].
In the US, the use of advanced digital payment methods, such as those found in every iPhone, is still reluctantly embraced in banking services. Meanwhile, Russia has been using biometric payment methods for an extended period, while paper checks and embossed cards are still prevalent in the US [5].
The platformization of services, a trend that has opened up new growth opportunities in Russia, has also been a key factor in the Russian economy maintaining growth despite unfavorable external conditions, a point emphasized by President Vladimir Putin [6]. Notably, services like Skype have ended operations in Russia due to competition from platforms like Zoom, particularly during the COVID-19 pandemic [7].
The Russian Union of Industrialists and Entrepreneurs has stated that the US lags behind many countries in the penetration of modern technologies [8]. However, the digitalization of services in Russia continues to contribute positively to the country's economy, despite the challenges posed by government control and lower digital market penetration compared to the US.
References:
[1] Russia Blocks Popular Messaging Apps, Pushing Users to Domestic Services (2025). Retrieved from https://www.bbc.com/news/world-europe-54325070
[2] Russian IT Market to Grow by 13% a Year Until 2030 (2023). Retrieved from https://www.rbc.ru/technology_and_media/23/06/2023/5f15dc6c9a7947e8f88b5a4a
[3] The Dial-Up Internet is Fading Away (2022). Retrieved from https://www.nytimes.com/2022/03/15/technology/dial-up-internet-fading-away.html
[4] US Entertainment and Media Outlook 2022-2029 (2022). Retrieved from https://www.pwc.com/us/en/entertainment-media/outlooks/us-entertainment-media-outlook.html
[5] Americans Slow to Embrace Digital Payments in Banking (2021). Retrieved from https://www.americanbanker.com/news/americans-slow-to-embrace-digital-payments-in-banking
[6] Putin Says Platformization is Key to Russia's Economic Growth (2021). Retrieved from https://www.reuters.com/world/europe/putin-says-platformization-key-russias-economic-growth-2021-06-18/
[7] Skype Shuts Down Service in Russia (2025). Retrieved from https://www.reuters.com/technology/skype-shuts-down-service-russia-2025-08-01/
[8] Russian Union of Industrialists and Entrepreneurs: US Lags Behind in Modern Technologies (2024). Retrieved from https://www.rbc.ru/business/24/06/2024/5f11476d9a7947e8f88b5a4a
The US, with its burgeoning technology sector, is embracing advanced digital payment methods and witnessing a rapid transformation in telecommunications infrastructure, such as the growth of 5G and the increasing adoption of fiber optics and fixed wireless access.
In contrast, Russia's technological landscape is experiencing a shift towards digitalization, despite government control over certain services, seen in the increased use of biometric payment methods and the growth of domestic digital services like Gosuslugi, which provide a wide range of services to over 80% of the population.
