Mounting financial and political unrest in Russia last week escalated into a full-blown ruble disaster, drawing the country into the throes of a currency crisis that sent stock markets worldwide reeling from the impact.
Wireless operators and manufacturers can prepare to see effects similar to those produced by the same problem plaguing certain Asian countries. “It will be similar to the Asia-Pacific crisis,” said Luca Tassan, director of The Strategis Group’s European division. “There will be a slowdown of the infrastructure buildout, increased churn level … and certainly an impact on total revenues at least for the next 12 to 18 months,” Tassan stated.
“The short-term impact will be a slowdown, but over the long-term-five to eight years-there will be no major effect.”
Citizens clamored to withdraw their rubles deposited in Russian banks, which were crippled by the sudden and dramatic-although not altogether unexpected-drop in the value of the currency. The trading of rubles for U.S. dollars also was suspended. Most Russians were only allowed to sign up on a list to make future withdrawals.
The value of the ruble continued sliding steadily downhill last week, and was last freefalling far beyond the mark of 9.5 rubles per dollar the government and the Central Bank last Monday drew as the floor limit. At one point, about 13 rubles was equal to a dollar.
The trading suspension, which began Wednesday, had been extended until Friday at RCR press time. Many banks there have been pushed to-and past-the brink of insolvency, while others are combining resources in mass mergers to weather the storm.
