Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

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


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


2.2.1 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


2.5.1 Skartel (Yota) 53

2.6 M2M ... 54



2.8.1 Subscribers: SIM cards installed base .61

2.8.2 SIM card shipments ...63

2.8.3 Machine to machine (M2M).65


3 PAYMENT ... 67


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


3.4 VENDORS ...... 78




4.2.1 UEC......84

4.2.2 Security issues86

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


4.3.1 Moscow Social card.88

4.3.2 Sberbank Social Card......90

4.3.3 Uralsib Social Card .92



5.1 OVERVIEW ..... 97

5.2 MOSCOW METRO...... 97









6.1.1 Overview .... 107

6.1.2 Remote mobile payment ...... 108

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


6.2.1 Introduction 111

6.2.2 NFC trials ... 111

7 PAY TV .....115






10.1 OVERVIEW .... 131

10.2 SITRONICS. ... 131


10.4 NOVACARD ... 138

10.5 ROSAN FINANCE...... 140


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
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
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...
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
SYS-CON Events announced today that CDS Global Cloud, an Infrastructure as a Service provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CDS Global Cloud is an IaaS (Infrastructure as a Service) provider specializing in solutions for e-commerce, internet gaming, online education and other internet applications. With a growing number of data centers and network points around the world, ...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...