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J’son & Partners Consulting presents main results of the Mobile Internet market research in CIS countries, results of 2013. Russia took the first place in the category Technological Leader and is in TOP 3 with the highest penetration of mobile Internet and smartphones.  

 

Development of 3G/4G in CIS countries

 

As of beginning of May 2014, LTE networks have been launched in all researched countries (excl. Belarus) (Table 1), and 3G networks – in all countries. The most high speed 3G technology – DC HSPA+ was launched in all researched countries (excl. Azerbaijan and Tajikistan) – provides upload data peak speed till 42 Mbps (Table 2).

 

 

According to J’son & Partners Consulting’s estimations Russia is a leader by 4G penetration rate (1.4%). As of April 2014, there were over 2 million LTE connections in over 50 country’s regions.

 

LTE network in Kazakhstan was launched by national operator Kazakhtelecom (based on Altel subsidiary). At the end of 2012 the network worked in the largest cities – Astana and Almaty, later – in Astana’s fellow towns and in over 30 cities in the region. At the end of 2013 the coverage zone was expanded to the following cities: Aktau, Aktobe, Atyrau, Karaganda, Ust-Kamenogorsk and Shymkent. The number of LTE connections was around 200 thousand by May 2014.

 

Three operators provide 4G LTE services in Moldova: IDC – since April 2012, Moldcell and Orange Moldova – since November 2012. Orange covered 10 cities (November 2013) and around 30% of the population. According to the data provided by National Regulatory Agency for Electronic Communications and IT had the total number of mobile telephone users connected to mobile Internet three mobile operators (Orange Moldova, Moldcell, Moldtelecom) increased for 2.2% in 2013 and was over 1 387.6 thousand. The majority of Internet connections - 1 183.5 thousand (60%) – were made via 2G, 774.6 thousand –3G and 4.2 thousand – via 4G networks (Illustration 1).

 

In Armenia 4G LTE network was launched by VivaCell-MTS in Erevan in the end of 2011. The network was further expanded to around 33% of the population.

 

In other CIS countries LTE was launched partially on the limited territories – in the largest cities as a rule. For example, Azercell’s  4G network launched in June 2012 had only 256 base stations at the end of 2013.

 

In Kyrgyzstan LTE operator Saima4G is covered the capital Bishkek, its region and several cities close to it (Kant, Tokmok and Kara-Balta). Ucell operator (Uzbekistan) launched LTE in Tashkent in August 2010.

 

Mobile Internet penetration

 

J’son & Partners Consulting data showed that the highest penetration of mobile Internet users (number of active connections per 100 inhabitants) was fixed in Armenia, Kazakhstan and Russia - 68%, 67% and 63%, results of 2013 (Table 3). Services based on 3G/HSPA networks are being provided in these countries by 4 operators, LTE networks were also launched.

 

In accordance with data of national regulator, there were 2 mln. users of mobile Internet in Armenia at the end of 2013, 1.2 connections of which used 3G network. The largest operator Vivacell-MTS had 1.1 mln. subscribers of mobile broadband access (91% of them used service of data transfer via mobile phones). There were around 11.5 million subscribers having an access to high speed Internet were in Kazakhstan at the end of 2013 with 67% annual growth according to the Agency of Statistics of Kazakhstan (Illustration 2). Kcell, the largest mobile operator in the country, showed around 5 million active Internet users at the end of 1Q2014. Smartphones’ share in Kcell network reached 15%. Second largest operator is Beeline with 5.2 million users of USB modems in the end of 2013. Since the end of 2012, LTE network has been launched, services are being provided under Altel 4G brand.

 

J’son & Partners Consulting estimates that the total active subscribers’ base (using mobile data transfer in Russia) reached 90 million subscribers (SIM-cards) in 2013 and increased for 16% vs results of 2012. For example, in Megafon share of Internet users increased from 33.6% till 37% of total subscriber base in 2013. 3G and 4G networks’ services are presented by 4 operators in the country. 3G networks cover 80% of population, 4G – around 40%.

 

 

 

Outsider-countries are Kyrgyzstan, Uzbekistan and Tajikistan by penetration rate of mobile Internet - 35%, 33% and 21% (Table 3). Low penetration rate of the service in this country, in particular, is due to high tariffs on mobile traffic in comparison with average wages and low smartphones’ penetration - 13-14%.

 

According to J’son & Partners Consulting, sales share of smartphones on the Russian mobile terminal market reached 57% (as of end of 1Q2014), smartphones’ penetration rate will reach 45%  (at the end of 2014, according to Ericsson estimation).  

 

Countries – technological leaders

 

Russia is a technological leader among CIS countries. LTE-Advanced Cat6, the most high speed network in the world was launched in February 2014 in terms of Sadovoe Circle in Moscow that provides peak upload speed till 300 Mbps. Now only Wi-Fi router supports this technology, smartphones that will be able to do this is expected at the end of 2014. Besides, modern DC-HSPA+ networks received high popularity in Russia (incoming speed – till 42 Mbps in peak mode). For example, MTS launched this technology at the end of 2013 on almost half of 3G sites.

 

Moldova and Armenia are also among technological leaders. At the end of February 2013, LTE Cat 4 was launched in 12 largest cities with peak speed – till 150 Mbps. As of end of 2013, Vivacell-MTS covered around 87% of Armenian population with DC HSPA+ network.

 

Detailed results of the Research are presented in the full version of the Report:«Mobile Internet in CIS countries» 

 

Resume

 

1. Mobile Internet in Russia

  1.1.    Mobile communication market: number of subscribers and operators’ market shares.

  1.2.    Mobile internet market: number of subscribers and operators’ market shares.

  1.3.    Subscribers’ base structure by types of devices.

  1.4.    Mobile Internet’s networks and market’s technological structure.

  1.5.    Revenue from mobile data transfer service.      

 

2. Mobile Internet in Belarus

  2.1.   Mobile communication market: number of subscribers and operators’ market shares.

  2.2.   Mobile internet market:  number of subscribers and operators’ market shares.

  2.3.   Subscribers’ base structure by types of devices.

  2.4.   Mobile Internet’s networks and market’s technological structure.

  2.5.   Revenue from mobile data transfer service.     

  

3. Mobile Internet in Azerbaijan

  3.1.   Mobile communication market: number of subscribers and operators’ market shares.

  3.2.   Mobile internet market:  number of subscribers and operators’ market shares.

  3.3.   Subscribers’ base structure by types of devices.

  3.4.   Mobile Internet’s networks and market’s technological structure.

  3.5.   Revenue from mobile data transfer service.     

 

4. Mobile Internet in Armenia

  4.1.   Mobile communication market: number of subscribers and operators’ market shares.

  4.2.   Mobile internet market: number of subscribers and operators’ market shares.

  4.3.   Subscribers’ base structure by types of devices.

  4.4.   Mobile Internet’s networks and market’s technological structure.

  4.5.   Revenue from mobile data transfer service.      

 

5. Mobile Internet in Kazakhstan

  5.1.   Mobile communication market: number of subscribers and operators’ market shares.

  5.2.   Mobile internet market: number of subscribers and operators’ market shares.

  5.3.   Subscribers’ base structure by types of devices.

  5.4.   Mobile Internet’s networks and market’s technological structure.

  5.5.    Revenue from mobile data transfer service.

      

6. Mobile Internet in Kyrgyzstan

  6.1.   Mobile communication market: number of subscribers and operators’ market shares.

  6.2.   Mobile internet market: number of subscribers and operators’ market shares.

  6.3.   Subscribers’ base structure by types of devices.

  6.4.   Mobile Internet’s networks and market’s technological structure.

  6.5.    Revenue from mobile data transfer service.   

 

7. Mobile Internet in Moldova

  7.1.   Mobile communication market: number of subscribers and operators’ market shares.

  7.2.   Mobile internet market: number of subscribers and operators’ market shares.

  7.3.   Subscribers’ base structure by types of devices.

  7.4.   Mobile Internet’s networks and market’s technological structure.

  7.5.    Revenue from mobile data transfer service.    

 

8. Mobile Internet in Tajikistan

  8.1.   Mobile communication market: number of subscribers and operators’ market shares.

  8.2.   Mobile internet market: number of subscribers and operators’ market shares.

  8.3.   Subscribers’ base structure by types of devices.

  8.4.   Mobile Internet’s networks and market’s technological structure.

  8.5.    Revenue from mobile data transfer service.      

 

9. Mobile Internet in Uzbekistan

  9.1.   Mobile communication market: number of subscribers and operators’ market shares.

  9.2.   Mobile internet market: number of subscribers and operators’ market shares.

  9.3.   Subscribers’ base structure by types of devices.

  9.4.   Mobile Internet’s networks and market’s technological structure.

  9.5.    Revenue from mobile data transfer service.      

 

10. Forecasts 2014-2018

 

11. Conclusions

 

List of companies mentioned in the Report:

 

Azerfon/Nar Mobile

Azercell

BakCell

 ArmenTel (Beeline)

Karabakh Telecom

Orange Armenia 900/2100

Vivacell-MTS

Life (BeST)

MTS

Velcom

Kcell

Kar-Tel (Beeline)

Tele2

Altel

Sky Mobile (Beeline)

Megacom

Moldcell

Orange

Moldtelecom (Unite)

Vimpelcom

MTS

Megafon

Rostelecom

Tacom Beeline

Tcell (indigo)

TT Mobile/MLT

Babilon-Mobile

Unitel (Beeline)

Ucell

Utel

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.