×

The Russian mobile Internet market. Results of 2015

May 2016

Analytical Report (full version)

Request cost of the full version of the study: news@json.tv

Analytical Report (full version)

The Russian mobile Internet market. Results of 2015
The Russian mobile Internet market. Results of 2015
May 2016

The Russian mobile Internet market. Results of 2015

May 2016

To register or Log in, to download the file

Download file

+7 926 561 09 80; news@json.tv

Write, call, if you have questions

 

The company J'son & Partners Consulting presents main results of the research "The Russian mobile Internet market. Results of 2015"

 

While the growth rate of revenues from traditional mobile services (voice and messaging services) are reducing, the growth of revenues from data transfer services are becoming the main driver of the Russian market of mobile communication.

 

In the above-mentioned research J'son & Partners Consulting specialists provide a detailed analysis of the key figures of the Russian mobile Internet market in 2015 and build a forecast of its development till 2020. The study results can serve as a basis during elaboration of the development strategy of the key market players.

 

 

Summary of the study

 

According to J'son & Partners Consulting, at the end of 2015, there were 107 million active users of mobile data transfer (by other words 107 mln SIM cards) in Russia. The subscriber base grew by 9% compared to the results of 2014. The main drivers for the growth in the number of mobile data transfer users are the growing penetration of smartphones and tablet PCs, as well as the development of the M2M market.

 

Source: J’son & Partners Consulting

 

It should be noted that the growing popularity of mobile applications and heavy mobile content: video and TV. Mobile messengers have already become one of the main means of communication between people, many car drivers can not imagine their lives without geolocation services, and some mobile applications do not have popular analogues in the global Internet at all. Smartphones and tablets are considered by many users as the main devices for watching video, music and games. Thus, not only the total active subscriber base of the mobile Internet increases, but also the average traffic per device constantly goes up.

 

The spread of high-speed data transmission technologies (HSPA +, LTE) makes it possible to comfortably use services with "heavy" Internet traffic. In addition, devices with LTE support are becoming more affordable, it has become possible to purchase 4G-smartphones and tablet PCs with 4G for less than 5 thousand rubles, which is especially important in terms of the current difficult macroeconomic situation in the country.

 

According to J'son & Partners Consulting estimates, in 2015 the total Russian traffic of mobile data transmission reached the level of 2.5 EB per year, compared to the results of 2014, this figure increased 1.5 times.

 

Source: J’son & Partners Consulting

 

One of the main factors of the mobile data traffic growth is among other things the replacement of simple mobile phones with smartphones, which consume up to tens of times more traffic on average. Note that since 2012, the active subscriber base of mobile Internet users with smartphones has increased threefold, and the traffic per device has quadrupled.

 

Source: J’son & Partners Consulting

 

As the results of 2015 show, the Russian market of mobile Internet access is resistant to macroeconomic fluctuations.

 

Considering the growing rates of the M2M market, as well as the increase in the number of users of smart mobile devices, J'son & Partners Consulting expects further intensive growth of mobile data subscribers in Russia. Also, with the development of high-speed mobile Internet networks, the average traffic consumed by mobile devices will also continue to increase.

 

 

Views of the industry representatives

 

Irina Lebedeva, marketing director of PJSC “VimpelCom”

 

– How did the mobile Internet consumption change due to the difficult macroeconomic situation in the country? Do users refuse to use mobile data services to save money?

 

On the contrary, we see that our customers have become even more active in using mobile Internet and other communication services. The number of mobile Internet users in Russia increased by 7.7%, while the overall base grew by 2.9% (data for 2015). The Internet traffic grew by 51%, and the smartphone users' traffic grew more than twice. Despite the decrease in the international tourism sector, the number of mobile Internet users in roaming in 2015 increased by 14% compared to 2014. In general, the amount of traffic consumed has increased — 69%.

 

And this is not only because of the economic crisis and the growth of the dollar which made Russians redirect their preferences towards the “intranet” tourism, but in general, because of the change in the behavioral model of our clients. For example, the first thing young people do when waking up in the morning is have a look at social networks, and people hurrying to work, do not leave the house without looking at the road situation report. Even the older generation begins to actively use different applications, ordering a taxi or paying their utility bills. And those who prefer to travel both in Russia and abroad, use mobile Internet actively, they post photos and videos, use mail and navigation, etc.

 

For us, this is an indicator that we are moving in the right direction, especially when the price of communication remains steadily low against of the constant rise in prices for different categories of goods and services. And what is important, the problem of expensive Internet in roaming is getting solved by itself.

 

- In your opinion, how much can the development of mobile Internet be a threat to the traditional services of cellular operators: voice, SMS, roaming?

 

- Of course, the consumption of SMS is getting slightly less, but insignificantly. At the same time, the consumption of key services (calls and mobile Internet) is constantly growing, and for us this is an indicator of the effectiveness of bundle offers, when you do not need to count how many minutes or megabytes per day you spend.

 

At the same time, the use of SMS in roaming shows a steady trend to decrease, as people are increasingly using instant messengers to communicate using mobile Internet packages (200 rubles for 40 MB, while 1 MB costs only 5 rubles).

 

There is an increase in Internet consumption in general, and the interactive entertainment content is growing noticeably. For example, users of tablets spend more than 40% of the time watching videos, and 56% use email every day, spending about 30 MB of Internet traffic per month. Specially for such users, we have recently added unlimited and free access to mail applications Mail.ru, Yandex.ru, Gmail.com to the existing tariff for tablets called "Internet forever" (71% of our customers use it).

 

– How often do users connect additional devices, such as tablets, to the mobile Internet?

 

Over the past year, the number of owners of two or three devices has significantly increased. People usually buy a fitness bracelet or a smart watch in addition to their smartphone or tablet. I have, for example, even scales with Wi-Fi, which send me data about my physical state to the application on the smartphone.

 

Several years ago the client who had several devices used different SIM cards, which meant he paid for different accounts. "Beeline" created an entire ecosystem with a smartphone as its main part. This smartphone has an activated tariff called “ALL” (prepayment), which shares Internet traffic, minutes and SMS with other devices or with members of the owner's family. This is a simpler and more understandable system, when you only need to pay for one SIM card and all family can use all communication services either mobile Internet or calls or SMS.

 

How fast is the LTE subscriber base increasing? Will the smartphones and tablet PCs with LTE support become the main devices generating the most significant traffic of the mobile Internet in the next few years, and are mobile USB modems becoming gradually less popular?

 

– 4G is now the driver of the mobile Internet growth in Russia. And it's not just about high speed and constant expansion of coverage of new territories, but also lowering prices for mobile devices supporting 4G. More and more smartphones and tablets supporting 4G are appearing at very affordable prices, which gradually make conventional phones and modems less popular. Of course, mainly there are models with basic characteristics, but those who are just beginning to use the Internet are interested in the "price-quality" ratio, and in terms of quality, many devices have already reached the level of B-brands. The number of 4G-smartphones in the "Beeline" database grew by 104%, and without LTE support — only by 11%. The number of LTE-tablets increased by 46%, and without LTE support — only by 6%.

 

Modems are gradually losing their positions, they are replaced by compact wearable 4G / Wi-Fi routers, which make it possible to overclock to 4G not only a laptop, as modems did, but all current devices: a tablet with no SIM card, or an old smartphone. Often, 4G-routers become an alternative to the wired Internet and used by the whole family. In particular, in Moscow, the number of 4G-routers in users' hands in 2015 increased seven times, and in St. Petersburg — 13 times.  

 

 

 

 

More detailed results of the research are presented in the full version of the report

 

«The Russian mobile Internet market. Results of 2015»

 

 

  1. The Russian market of mobile Internet access, key performance indicators

 

1.1.The total market size, subscriber base and mobile data traffic, 2012-2015

 

1.1.1.  Total active operator subscriber base of mobile data transmission

 

1.1.2.  Total revenues of mobile operators from data transmission

 

1.1.3.  Average income per month from one active user of data transmission of mobile operators

 

1.1.4.  Mobile data traffic of mobile operators

 

1.1.5.  Average data traffic per month from one active user of data transmission of mobile operators

 

1.1.6.  Average cost of 1 MB of mobile data traffic of mobile operators

 

1.2.Regional structure of the Russian market of mobile Internet, 2015

 

1.2.1.  Active subscriber base of mobile data transmission, by Federal districts

 

1.2.2.  Total revenues of mobile operators from data transmission, by Federal districts

 

1.2.3.  Mobile data traffic of mobile operators, by Federal districts

 

1.3.Structure of the mobile Internet market by operators, 2015

 

1.3.1.  Active subscriber base of mobile data transmission, by operators

 

1.3.2.  Total revenues of mobile operators from data transmission, by operators

 

1.3.3.  Mobile data traffic of mobile operators, by operators

 

1.4.Structure of the mobile Internet market by type of device, 2015

 

1.4.1.  Active subscriber base of mobile data transmission, by type of device

 

1.4.2.  Mobile data traffic of mobile operators, by type of device

 

  1. Overview of the markets related to mobile data transfer, 2012-2020

 

2.1.Overview of the Russian smartphone market

 

2.1.1.  Volume of the smartphone market in physical and monetary terms

 

2.1.2.  Available stock of smartphones

 

2.1.3.  Trends and forecasts of the Russian smartphone market

 

2.2.Overview of the Russian tablet market

 

2.2.1.  Volume of the tablet market in physical terms

 

2.2.2.  Available stock of tablet PCs

 

2.2.3.  Trends and forecasts of the Russian tablet market

 

2.3.Overview of the Russian market of USB-modems and mobile routers

 

2.3.1.  Volume of the market of USB-modems and mobile routers in physical terms

 

2.3.2.  Available stock of USB-modems and mobile routers

 

2.3.3.  Trends and forecasts of the Russian market of USB-modems and mobile routers

 

  1. Trends and forecasts of the Russian mobile Internet market development 2016-2020

 

3.1.Forecast of the Russian mobile Internet market development

 

3.2.Trends, drivers and barriers of the Russian mobile Internet market development

 

  1. Conclusions

 

 

 

 

 

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

 

 

 

Copyright © 2016, J'son & Partners Consulting. The media can use any text, graphics and data contained in this market review, only using a link to the source of information - J'son & Partners Consulting or with an active link to the JSON.TV portal

™ J'son & Partners [registered trademark]

 

 

The company J'son & Partners Consulting presents main results of the research "The Russian mobile Internet market. Results of 2015"