Welcome!

.NET Authors: Elizabeth White, Jayaram Krishnaswamy, Sematext Blog, ITinvolve Blog, Aditya Banerjee

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 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...