Welcome!

Microsoft Cloud Authors: Pat Romanski, Jnan Dash, Andreas Grabner, Lori MacVittie, Jim Kaskade

News Feed Item

Russia Smart Card Market 2012

NEW YORK, Dec. 27, 2012 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Russia Smart Card Market 2012

http://www.reportlinker.com/p0770997/Russia-Smart-Card-Market-2012.html#...

The Russian secure transactions market is characterized by high penetration levels of SIM cards, a growing adoption of debit cards, and huge volumes of disposable tickets for Moscow Metro. Over the 2010-2016 period, this market will demonstrate a high dynamism, along with the adoption of innovative solutions such as the UEC (Universal Electronic Card), which will bring drastic changes in the market dynamics. 

In Russia, the telecom market segment remains quite isolated from global operators, as international major players have not developed subsidiaries in Russia. The only exception is Tele2 from Sweden, which remains a second tier player. Major mobile network operators in Russia are evolving at their own pace, with the development of 3G, and are planning for LTE deployment in 2014. The Russian SIM card market is characterized by an extremely high penetration level. For instance, in Moscow, the penetration level is over 200%, meaning most users are actually owning two or more SIM cards. On a global basis, in Russia, the penetration level is over 150%. The major driver for this surprisingly high penetration level is the strong proportion of prepaid plans, leading users to churn from operator to operator in order to follow the best offers on this competitive market. 

This subscriber pattern, characterized by a high churn level, leads to a heavy consumption of SIM cards, which will keep a steady growth over the 2010–2016 period. Besides the natural churn rate, this growth will be driven by a wider adoption of 3G, and, to a lesser extent, by the emergence of 4G (LTE). Smart Insights anticipates SIM card shipments will pass the 240 million mark in 2016. 

Besides regular SIM cards, machine to machine (M2M) applications are bound to experience a fast growth over the 2010 – 2016 period. The fastest growing sub-segment in the M2M market will be the SIM cards dedicated to 2G / 3G / 4G modems. Smart meters, and fleet management / eCall applications will also represent 20% of the total NFC shipments. Fleet management / eCall deployment will be supported by the launch and wide-scale generalization of GLONASS, the Russian positioning system, comparable to GPS and Galileo. 

The Russian payment card market is characterized by the wide and growing spread of debit cards, often given by companies to employees as a means to pay salaries. These cards are basically prepaid cards, which can be reloaded, and then become debit cards. Social benefits are paid on social cards, which often include a transport application. Credit cards are still marginal, but Smart Insights anticipates, that, due to the global economic growth in Russia, their share will be increasing significantly over the 2010–2016 period. In terms of technologies, the large majority of payment cards are still magstripe based. As payment organizations are trying to enforce the liability shift, smart cards, in the payment segment, will experience a growing adoption: Smart Insights anticipates smart cards (contact, contactless and dual technology) will represent 47% of the total number of payment cards by 2016. 

The most significant factor in the Government ID segment is the launch by the Russian government of the UEC, the Universal Electronic Card, which will not only be an Identity Document, but also a means to access social services, a payment means (banking card), and a transport card (for mass transit). The Russian government announces first samples of the UEC by end of 2011, and a global deployment by 2014. The deployment of the UEC will limit growth in the payment card segment, and will trigger a steep decrease for the transport card segment. Smart Insights anticipates that by the end of 2016, 112 million UEC will have been delivered covering almost all the population over 14. Russia has launched its biometric passport program a few years ago, and this business will be experiencing a slow growth over the studied period. 

Moscow metro is one of the largest subway systems in the world by the number of passengers. Most of them are using disposable tickets including a contactless chip. This single application represents the largest number of secure transaction objects on the Russian market with 2.5 billion units sold each year. However, the generalization UEC cards will reduce dramatically the number of contactless tickets used in Moscow. Other mass transit systems in Russia use reloadable cards, leading to much smaller volumes. 

Russia is not among the pioneers for NFC (Near Field Communication) adoption. Mobile network operators are lunching pilots, generally in combination with mass transit operators, but, so far, none of them has showed any sign of generalization. 

As a consequence of these market factors, the memory card segment (disposable Moscow subway tickets and prepaid phone cards) will decrease by close to 10% on a yearly basis. On the other hand, globally, the secure portable object market (microprocessor cards, ePassports, M2M secure devices) in Russia will experience a 19.8% CAGR (Compound Annual Growth Rate) for the 2010-2016 period. 

Table of contents

1 OVERVIEW .. 13

2 TELECOM.... 17

2.1 OVERVIEW ..... 19

2.2 MAJOR MOBILE OPERATORS... 26

2.2.1 Mobile TeleSystems (MTS) .26

2.2.2 MegaFon ...33

2.2.3 VimpelCom (Beeline) .37

2.2.4 Tele2 Russia.....40

2.2.5 Svyazinvest (Rostelecom) ..43

2.2.6 SMARTS Group44

2.2.7 Mobile Virtual Network Operators (MVNOs) ......46

2.3 3G ..... 48

2.4 CDMA .. 50

2.5 LTE (LONG TERM EVOLUTION) ..... 51

2.5.1 Skartel (Yota) 53

2.6 M2M ... 54

2.7 MOBILE HANDSETS MARKET... 57

2.8 MOBILE COMMUNICATION MARKET FORECASTS ..... 61

2.8.1 Subscribers: SIM cards installed base .61

2.8.2 SIM card shipments ...63

2.8.3 Machine to machine (M2M).65

2.9 PUBLIC TELEPHONY ... 66

3 PAYMENT ... 67

3.1 BANKING INDUSTRY ... 69

3.1.1 Overview ......70

3.1.2 Russian credit cards market ....72

3.1.3 Russian three major payment systems .....73

3.1.4 Key findings...74

3.1.5 Bank cards ....75

3.2 EMV MIGRATION ...... 76

3.3 BARRIERS TO EMV MIGRATION ...... 77

3.4 VENDORS ...... 78

4 GOVERNMENT ID.. 81

4.1 ELECTRONIC PASSPORTS...... 83

4.2 UNIVERSAL ELECTRONIC CARD (UEC) ...... 84

4.2.1 UEC......84

4.2.2 Security issues86

4.2.3 Single Federal Information and Payment System for UEC ...87

4.3 SOCIAL SECURITY CARD 87

4.3.1 Moscow Social card.88

4.3.2 Sberbank Social Card......90

4.3.3 Uralsib Social Card .92

4.4 ID DOCUMENT SHIPMENTS .... 94

5 TRANSPORT 95

5.1 OVERVIEW ..... 97

5.2 MOSCOW METRO...... 97

5.3 ST. PETERSBURG TRANSPORT 99

5.4 BANK – TRANSPORT COMBINED FARE COLLECTION SYSTEM. 99

5.5 GOLDEN CROWN – SINGLE TRANSPORT CARD..... 101

5.6 OTHER TRANSPORT APPLICATIONS.. 103

5.7 MULTI-APPLICATION . 103

5.8 TRANSPORT CARD MARKET .. 104

6 MOBILE PAYMENTS.....105

6.1 MOBILE MONEY FOR UNBANKED USERS ..... 107

6.1.1 Overview .... 107

6.1.2 Remote mobile payment ...... 108

6.1.3 Prepaid top-up extension ..... 109

6.2 PROXIMITY PAYMENT: NFC.. 111

6.2.1 Introduction 111

6.2.2 NFC trials ... 111

7 PAY TV .....115

7.1 MARKET OVERVIEW... 117

7.2 DIGITAL TV COMPANIES ..... 118

8 ENTERPRISE SECURITY 121

9 SMART CARD MARKET .125

10 SMART CARD MAJOR STAKEHOLDERS .129

10.1 OVERVIEW .... 131

10.2 SITRONICS. ... 131

10.3 ORGA ZELENOGRAD (MORPHO) .... 137

10.4 NOVACARD ... 138

10.5 ROSAN FINANCE...... 140

10.6 INPAS TECHNOLOGIES...... 142

10.7 ANGSTREM.... 144

10.8 G&D ZNAK CARD .... 146

10.9 RUSNANO ..... 147

10.10 AMBIQ TECHNOLOGY..... 148

10.11 SVETLANA-KART .. 149

11 GLOSSARY ......151

Table of illustrations

Illustration 1 Russian regions by number of MNOs (2010) 19

Illustration 2 Russian market breakdown, by subscribers (Q1/2011).20

Illustration 3 Subscribers repartition evolution (2006-2011) ...20

Illustration 4 Market shares evolution, by subscribers (2006-04/2011) .....21

Illustration 5 Subscriber base in Russia (2009) ......21

Illustration 6 MTS new subscriber acquisition costs (2010-2016) .....22

Illustration 7 "Big Three" ARPU dynamics (2006-2010) ....24

Illustration 8 Dynamics of average ARPU of Russian operators (2007-2009) ......24

Illustration 9 MTS key facts .26

Illustration 10 MTS mobile business revenue evolution, US$ (2005-2010)..28

Illustration 11 MTS mobile business revenue evolution, EUR (2005-2010) .29

Illustration 12 MTS subscribers base evolution (2005-2010) ....29

Illustration 13 MTS market share evolution, by subscribers (2005-2010)...30

Illustration 14 MTS penetration evolution (2005-2010) ...30

Illustration 15 MTS churn rate evolution (2005-2010).....31

Illustration 16 MTS churn rate, company's forecast (2009-2015) .....31

Illustration 17 MTS ARPU evolution, US$ (2005-2010).....32

Illustration 18 MTS ARPU evolution, EUR (2005-2010) ....32

Illustration 19 MegaFon key facts 33

Illustration 20 MegaFon subscribers base evolution (2009-2011) .....35

Illustration 21 MegaFon ARPU evolution, RUB (2010-2016) .....35

Illustration 22 MegaFon ARPU evolution (EUR) ......36

Illustration 23 Beeline key facts ..37

Illustration 24 Beeline subscribers base evolution (2006-2011) 38

Illustration 25 Beeline prepaid subscribers share evolution (2010-2016)...39

Illustration 26 Beeline churn rate evolution (2006-2010) 39

Illustration 27 Beeline ARPU evolution (2006-2010)40

Illustration 28 Tele2 Russia key facts ...40

Illustration 29 Tele2 Russia subscribers base evolution (2006-2011).41

Illustration 30 Tele2 Russia prepaid subscribers share evolution (2010-2016) ...41

Illustration 31 Tele2 Russia churn rate evolution (2010-2016) .42

Illustration 32 Rostelecom key facts ....43

Illustration 33 SMARTS key facts..44

Illustration 34 SMARTS Group subscribers base evolution (2006-04/2011) .45

Illustration 35 MVNOs market share, by subscribers (2008).....47

Illustration 36 MVNO subscribers base evolution (2010-2016) ..47

Illustration 37 3G USB modems repartition (Q2/2010)....49

Illustration 38 MNOs 3G presence in cities, by category of population (2010) ...49

Illustration 39 3G presence, by number of regions (2010) ......50

Illustration 40 WiMax operators market share, by subscribers (2010) ......51

Illustration 41 WiMax subscriber base (Q2/2009-Q2/2010) .....52

Illustration 42 LTE subscriber base forecasts (2010-2016) ......52

Illustration 43 Skartel key facts...53

Illustration 44 Yota subscribers, by connection tool (2010) ....54

Illustration 45 M2M market structure, by number of units (2010) ....56

Illustration 46 Mobile handsets market volume (2009-2016) ...57

Illustration 47 Mobile handsets shipments market shares, by producers (H1/2010) ...58

Illustration 48 Smart phones shipments, in million units (2004-3Q/2010) .58

Illustration 49 Smart phones market shares, by producers (Q1-Q3/2010) .59

Illustration 50 3G handsets shipments (2005-2010) 59

Illustration 51 2G & 3G handsets shipments repartition (Q1-Q3/2009).....60

Illustration 52 3G handsets shipments (2005-2010) 60

Illustration 53 Total installed base of SIM cards (2010-2016)...61

Illustration 54 Total installed base of SIM cards, in millions (2010-2016) ..62

Illustration 55 Total installed base of SIM cards' growth rate, year-on-year (2010-2016) ....62

Illustration 56 SIM cards net additions (2010-2016) 62

Illustration 57 SIM card shipments (2010-2016) .....63

Illustration 58 SIM card shipments, in millions (2010-2016) ....63

Illustration 59 SIM card shipments growth, year-on-year (2010-2016)......63

Illustration 60 SIM cards shipments, in % by producers (2010) .64

Illustration 61 Total installed base of M2M, in millions (2010-2016) .65

Illustration 62 M2M solutions shipments (2010 – 2016) ...65

Illustration 63 M2M shipments, in millions (2010-2016) ..65

Illustration 64 M2M shipments, by category (2010-2016).66

Illustration 65 Top 10 banks by installed base of bank cards, in thousands (2009-2010).....69

Illustration 66 Top 10 banks' cards yearly issuing volumes (2009-2010) ....69

Illustration 67 Payments and cash withdrawal operations ratio (2005-2010).....70

Illustration 68 Credit cards market (2003-2011) ....72

Illustration 69 Total installed base of bank cards (2010-2016).75

Illustration 70 Total installed base of bank cards, by technology (2010) ..75

Illustration 71 Bank cards producers' market share (2010) .....79

Illustration 72 Universal Electronic Card, UEC ......85

Illustration 73 Social Card of Moscow...89

Illustration 74 Social Card of Bashkortostan..93

Illustration 75 Biometric passport shipments (2010-2016) ......94

Illustration 76 UEC shipments (2010-2016) ...94

Illustration 77 Moscow Metro cards, by type (2008)98

Illustration 78 Number of entries by access means per year (2008) .98

Illustration 79 Express Card ..... 100

Illustration 80 Management scheme of Express Card project 100

Illustration 81 Express Card open fare collection system promotional document .... 101

Illustration 82 Golden Crown Transport cards number (2007-2010) 102

Illustration 83 Number of journeys by Golden Crown Transport card (2007-2010) ... 102

Illustration 84 Moscow transport card shipments (2010-2016) ...... 104

Illustration 85 Reloadable transport card shipments (2010-2016) .. 104

Illustration 86 Bank cards market statistics (2009)...... 108

Illustration 87 Mobile commerce landscape, prospects 109

Illustration 88 Bladox Waver .... 112

Illustration 89 Bladox Waver installed in Nokia phone.. 112

Illustration 90 Aeroexpress NFC payment scheme 113

Illustration 91 MegaFon NFC sticker... 114

Illustration 92 Top 5 Russian pay-TV operators, by subscribers (2009) ... 119

Illustration 93 Top 5 Russian satellite TV operators, by subscribers (2009) .... 119

Illustration 94 Satellite TV development.... 120

Illustration 95 Smart USB tokens market repartition (2010).. 123

Illustration 96 Microprocessor smart secure devices (2010-2016) .. 127

Illustration 97 Memory card shipments (2010-2016) .... 127

Illustration 98 Sitronics key facts...... 131

Illustration 99 Sitronics' financial results (2010) .. 133

Illustration 100 Sitronics Microelectronics financial results (2010). 133

Illustration 101 Sitronics Microelectronics revenues (2009-2010) .. 134

Illustration 102 Key products, in % of segment revenue (2010) ..... 134

Illustration 103 Sitronics company geographies, in % of the segment revenue (2010) ....135

Illustration 104 Integrated circuits market volume (2010-2016).... 136

Illustration 105 Sitronics value chain positioning . 136

Illustration 106 Orga Zelenograd value chain positioning ..... 137

Illustration 107 NovaCard value chain positioning 139

Illustration 108 Rosan Finance value chain positioning. 141

Illustration 109 INPAS Technologies value chain positioning . 143

Illustration 110 Angstrem value chain positioning 145

Illustration 111 G&D Znak Card value chain positioning 146

Illustration 112 Ambiq Technology value chain positioning... 148

Illustration 113 Svetlana-Kart value chain positioning.. 149

To order this report:

Credit_Card Industry: Russia Smart Card Market 2012

Contact Nicolas: [email protected]
US: (805)-652-2626
Intl: +1 805-652-2626

SOURCE Reportlinker

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.