RIF 2000: Hellooo, Internet!
The fourth Russian Internet Forum surprised guests with the quality of its talks, each pre-screened through a competitive process. A financial entry barrier was also introduced for speakers. The event drew numerous foreign companies, along with representatives of the State Duma, Russian government, and civic organizations. RIF 2000 projected a distinctly businesslike atmosphere, underscoring the internet’s growing role in the real economy.
Tech Highlights and Pain Points
The technical capabilities of the forum impressed many. Plenary sessions were broadcast live in RealVideo, and, as participants recalled, “Bandwidth was huge—256 Mbps. Just ten minutes after a speech, a processed video file with audio was already posted on the forum’s website.” On the first day alone, the site received 10,000 visits.
Until the internet matured as an industry, its popularity was often measured indirectly—such as the frequency of the word “Internet” in Russian media. In 1995, regional newspapers mentioned it just twice; by 1998, 1,314 times. In Moscow, the figures jumped from 76 to 3,312.
By 2000, Runet finally had reliable user data, marking its arrival as a full-fledged industry. Officially, Russia counted two million internet users.
This maturity also meant recognition of the internet’s darker side. Since 1998, the FSB had implemented the “Operational Investigative Activities System,” requiring ISPs to provide law enforcement with special access channels to user data, including email monitoring and traffic tracking.
Against this backdrop, RIF 2000 hosted 840 participants from 358 companies, nearly double the previous year. The program featured 21 breakout sessions, five plenary sessions, and nine roundtables. Topics ranged from “Investments in Internet Projects” to “E-Business,” “Modern Internet Technologies,” “Satellite Internet and Multimedia,” and “Overlay and Access Networks.”
Yet participants’ goals remained stable: negotiations, recruitment, business ties, and networking.
Virtual, Yet Real
The forum’s overarching theme was “The Internet as a Real Sector of Russia’s Economy.” All speakers underscored the point. Never before had an industry developed with such speed.
The e-commerce section highlighted global trends: either businesses went online, or they went under. One of Russia’s first online stores, specializing in CDs, books, and videocassettes, processed 150 orders per day with a catalog of 20,000 items. Daily traffic reached 100,000 visitors.
Online banking began to win public trust, enabling not only bill payments but also ticket purchases and hotel bookings.
Runet’s leading search engine reported 70,000 daily visits, 200,000 queries, and a database of 16 million documents totaling 161 GB of text.
Such figures convinced investors. Shares of internet-linked companies climbed steadily. Observers noted three evolutionary stages: first, companies simply launched websites; second, they built e-commerce and transactions; third, they moved toward personalization, integration, and automation.
Cause and Effect
But the e-commerce boom came with challenges. Logistics, particularly across Russia’s vast geography, topped the list. Another issue was unequal product availability between Moscow and the regions. The lack of e-commerce legislation and low public trust in online payments were also hurdles.
A dedicated session addressed where investment might come from. Unlike the U.S., Russia lacked a NASDAQ equivalent to value startups. Investors often had no idea if they were overpaying or securing a bargain.
Funds flowed instead from oil and gas companies (investing in internet education), banks (buying media projects), and even the government, eager to foster the new sector. Analysts estimated Runet’s 2000 investment capacity at over $120 million, compared with $50–70 million in 1999.
Flying Without Landing
One speaker offered a metaphor: “The internet is like a plane that never lands. Passengers board and exit mid-flight, while refueling and repairs also happen in the air.” The analogy resonated, capturing the speed that had become the defining value of online business.
Incubators embodied this urgency, fast-tracking promising ideas. If a concept showed potential, founders received money, space, computers, and a shot at turning it into reality. Within six to eight months, projects could be sold with margins of 100% or more. The dream of fast money dominated the atmosphere of the early 2000s online economy.
Ergo
The language of RIF 2000, now infused with financial jargon, made one thing clear: the internet’s early era of enthusiasts was ending. Even the most successful amateurs had to become competent managers or hand their projects over to professionals. A new, more disciplined era of running digital businesses had arrived.
