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Carrier billing in Central & Eastern Europe: 2018 market report by Fortumo

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This market report gives an overview of the mobile landscape in the largest countries of Central & Eastern Europe (CEE): Russia, Ukraine, Poland, Romania, Czech Republic, Hungary, Azerbaijan, Belarus, Bulgaria and Serbia.

CEE has an advanced digital economy with smartphone ownership being above 60%. Major merchants including Google, Apple, Facebook, Netflix and Riot Games have teamed up with mobile operators in order to use carrier billing and telco promotional channels for growth.

Carrier billing and telco bundling is popular in the region as traditional payment and marketing channels do not work well. For example, less than 25% of people across the region have access to credit cards for online payments.

This makes carrier billing an excellent alternative for revenue growth in CEE, also illustrated by the fact that it has become the 2nd most popular payment method for digital gaming here. Carrier billing accounts for 21% of all gaming transactions, while bank cards hold an 18% market share and e-Wallets stand at 35%.

Our CEE market report aims to help merchants understand the users of the region better: how they go online, how much they are willing to spend and how to localize pricing and marketing in order to grow their presence in the region.

Fortumo is a digital enablement platform for app stores and digital service providers for user acquisition, monetization and retention. The company connects service providers with more than 350 mobile operators across Asia, Europe, Latin America, the Middle East and Africa. Service providers use Fortumo's platform to manage the end-to-end customer lifecycle of mobile users on these networks through the company's bundling, carrier billing and messaging solutions.

Fortumo's platform is used by thousands of leading digital merchants including Google, Spotify and Electronic Arts. Founded in 2007, Fortumo has offices in San Francisco, Madrid, Beijing, Delhi, Singapore, Estonia and Hanoi. For more information, please visit https://fortumo.com.

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Carrier billing in Central & Eastern Europe: 2018 market report by Fortumo

  1. 1. Carrierbillingin2018: Central & Eastern Europe Market report by Fortumo
  2. 2. This market report gives an overview of the mobile landscape in the largest countries of Central & Eastern Europe (CEE): Russia, Ukraine, Poland, Romania, Czech Republic, Hungary, Azerbaijan, Belarus, Bulgaria and Serbia. Introduction CEE has an advanced digital economy with smartphone ownership being above 60%. Major merchants including Google, Apple, Facebook, Netflix and Riot Games have teamed up with mobile operators in order to use carrier billing and telco promotional channels for growth. Carrier billing and telco bundling is popular in the region as traditional payment and marketing channels do not work well. For example, less than 25% of people across the region have access to credit cards for online payments. UKRAINE ROMANIA HUNGARY BELARUS SERBIA RUSSIA POLAND CZECH REPUBLIC AZERBAIJAN BULGARIA Carrier billing in 2018: Central & Eastern Europe
  3. 3. This makes carrier billing an excellent alternative for revenue growth in CEE, also illustrated by the fact that it has become the 2nd most popular payment method for digital gaming here. Carrier billing accounts for 21% of all gaming transactions, while bank cards hold an 18% market share and e-Wallets stand at 35%. Our CEE market report aims to help merchants understand the users of the region better: how they go online, how much they are willing to spend and how to localize pricing and marketing in order to grow their presence in the region. Data presented in the white paper has been taken from public sources of information as well as anonymized, aggregated data on payments processed by merchants using Fortumo’s Web SDK. Mattias Liivak Head of Marketing & PR Should you have any questions about the report, please get in touch with us at bd@fortumo.com. Andrea Boetti VP of Global Business Development & Sales Carrier billing in 2018: Central & Eastern Europe
  4. 4. RUSSIA Carrier billing in 2018: Central & Eastern Europe
  5. 5. Market profile Median age: GNI per capita: $9,700 Gross National Income (2016) 39147 Population: 248 Mobile phones: million yearsmillion RUSSIA 61% Smartphone penetration (of all mobile phones): Credit card penetration: 21%41% Mobile broadband access: 78% Prepaid SIM market share: Debit card penetration: 44% Carrier billing in 2018: Central & Eastern Europe
  6. 6. Market share of carrier billing in digital gaming (SuperdataResearch): 22% (2nd most popular payment method) 1 Russian Ruble (RUB) Transitioner $0.28 5x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 70/100 Recurring support: YES Major merchant deployments: Currency: 18% Taxation info: VAT $0.018 RUSSIA Monthly median revenue (YTD): % denotes YTD change $2.7 +7% Carrier billing in 2018: Central & Eastern Europe
  7. 7. LOCALIZATION (browser language) 97% Russian. 97% 81% TABLET DESKTOP MOBILE 14% 5% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Price point Popularity % Price point Revenue % Available pricing: 35 RUB to 2000 RUB ($0.6 to $36) Price point (in RUB) 50 69.7 140 240.1 240 300 500 39% 25% 7% 2% 17% 4% 12% 16% 9% 10% 0% 0% 15% 35% 2% 8% 1000 Carrier billing landscape RUSSIA 34% 25% 24% 15% 2% Numbers rounded down in order for total to add up to 100%. Carrier billing in 2018: Central & Eastern Europe
  8. 8. UKRAINE Carrier billing in 2018: Central & Eastern Europe
  9. 9. Market profile Median age: GNI per capita: $2,3104042 Population: 62 Mobile phones: million yearsmillion UKRAINE 66% Smartphone penetration (of all mobile phones): Credit card penetration: 27%16% Mobile broadband access: 91% Prepaid SIM market share: Debit card penetration: 39% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  10. 10. Market share of carrier billing in digital gaming (SuperdataResearch): 8.5% (4th most popular payment method) 1 Ukrainian Hryvnia (UAH) Transitioner $0.45 3x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 66/100 Recurring support: NO Major merchant deployments: Currency: 20% Taxation info: VAT $0.038 Monthly median revenue (YTD): % denotes YTD change $1.8 +60% UKRAINE Carrier billing in 2018: Central & Eastern Europe
  11. 11. LOCALIZATION (browser language) 10% Ukrainian, 67% Russian 67%10% 42% TABLET DESKTOP MOBILE 54% 4% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 1.5 UAH to 50 UAH ($0.05 to $1.9) Carrier billing landscape 38% 35% 26% 1% UKRAINE Price point Popularity % Price point Revenue % Price point (in UAH) 1.5 2% 0% 5 2% 0% 7 5% 1% 10 4% 1% 15 3% 2% 25 45% 36% 50 37% 59% Carrier billing in 2018: Central & Eastern Europe
  12. 12. POLAND Carrier billing in 2018: Central & Eastern Europe
  13. 13. Market profile Median age: GNI per capita: $12,6804038 Population: 55 Mobile phones: million yearsmillion POLAND 70% Smartphone penetration (of all mobile phones): Credit card penetration: 16%64% Mobile broadband access: 44% Prepaid SIM market share: Debit card penetration: 49% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  14. 14. Market share of carrier billing in digital gaming (SuperdataResearch): 20% (2nd most popular payment method) 1 Polish Zloty (PLN) Leader $0.24 5x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 76/100 Recurring support: YES Major merchant deployments: Currency: 23% Taxation info: VAT $0.29 Monthly median revenue (YTD): % denotes YTD change $6.5 +42% POLAND Carrier billing in 2018: Central & Eastern Europe
  15. 15. LOCALIZATION (browser language) 92% Polish 92% 55% TABLET DESKTOP MOBILE 39% 6% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 2.5 PLN to 31 PLN ($0.7 to $9) Price point (in PLN) Carrier billing landscape 31% 26% 22% 20% 1% POLAND Price point Popularity % Price point Revenue % 2.46 11% 2% 4.92 3% 1% 7.38 7% 3% 11.07 20% 12% 11.08 0% 0% 23.37 33% 41% 30.75 26% 42% Carrier billing in 2018: Central & Eastern Europe
  16. 16. ROMANIA Carrier billing in 2018: Central & Eastern Europe
  17. 17. Market profile Median age: GNI per capita: $9,4804119 Population: 27 Mobile phones: million yearsmillion ROMANIA 60% Smartphone penetration (of all mobile phones): Credit card penetration: 11%57% Mobile broadband access: 54% Prepaid SIM market share: Debit card penetration: 45% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  18. 18. Market share of carrier billing in digital gaming (SuperdataResearch): 17% (3rd most popular payment method) 1 Romanian Leu (RON) Transitioner $0.16 8x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 71/100 Recurring support: YES Major merchant deployments: Currency: 19% Taxation info: VAT $0.26 Monthly median revenue (YTD): % denotes YTD change $6.6 +72% ROMANIA Carrier billing in 2018: Central & Eastern Europe
  19. 19. LOCALIZATION (browser language) 56% Romanian 56% 54% TABLET DESKTOP MOBILE 41% 5% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 0.8 RON to 24 RON ($0.2 to $6.3) Price point (in RON) Carrier billing landscape 37% 29% 24% 10% ROMANIA Price point Popularity % Price point Revenue % 0.83 6% 1% 1.19 21% 6% 2.38 18% 9% 3.57 16% 13% 5.95 26% 13% 9.52 1% 2% 11.9 11% 30% 17.85 1% 4% 23.8 4% 21% Carrier billing in 2018: Central & Eastern Europe
  20. 20. CZECH REPUBLIC Carrier billing in 2018: Central & Eastern Europe
  21. 21. Market profile Median age: GNI per capita: $17,5304210 Population: 14 Mobile phones: million yearsmillion CZECH REPUBLIC 65% Smartphone penetration (of all mobile phones): Credit card penetration: 25%54% Mobile broadband access: 37% Prepaid SIM market share: Debit card penetration: 64% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  22. 22. Market share of carrier billing in digital gaming (SuperdataResearch): 21% (2nd most popular payment method) 1 Czech Koruna (CZK) Leader $0.33 4x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 77/100 Recurring support: NO Major merchant deployments: Currency: 21% Taxation info: VAT $0.49 Monthly median revenue (YTD): % denotes YTD change $4.2 +119% CZECH REPUBLIC Carrier billing in 2018: Central & Eastern Europe
  23. 23. LOCALIZATION (browser language) 76% Czech 76% 46% TABLET DESKTOP MOBILE 50% 4% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 20 CZK to 550 CZK ($1 to $27) Price point (in CZK) Carrier billing landscape 39% 36% 25% CZECH REPUBLIC Price point Popularity % Price point Revenue % 20 0% 0% 3 0% 0% 30 15% 3% 40 0% 0% 50 46% 17% 69 0% 0% 79 2% 1% 99 10% 8% 199 6% 9% 249 5% 10% 299 6% 13% 549 9% 38% 800 0% 0% 1000 0% 0% Carrier billing in 2018: Central & Eastern Europe
  24. 24. HUNGARY Carrier billing in 2018: Central & Eastern Europe
  25. 25. Market profile Median age: GNI per capita: $12,570429 Population: 11 Mobile phones: million yearsmillion HUNGARY 65% Smartphone penetration (of all mobile phones): Credit card penetration: 11%55% Mobile broadband access: 43% Prepaid SIM market share: Debit card penetration: 59% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  26. 26. 1 Hungarian Forint (HUF) Leader $0.21 6x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 75/100 Recurring support: YES Major merchant deployments: Currency: 27% Taxation info: VAT $0.0039 Monthly median revenue (YTD): % denotes YTD change $3 +73% HUNGARY Carrier billing in 2018: Central & Eastern Europe
  27. 27. LOCALIZATION (browser language) 96% Hungarian 96% 68% TABLET DESKTOP MOBILE 26% 6% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 300 HUF to 2000 HUF ($1.2 to $8) Price point (in HUF) Carrier billing landscape 46% 31% 23% HUNGARY Price point Popularity % Price point Revenue % 305 2% 1% 508 70% 42% 1016 7% 9% 2032 20% 48% 5000 0% 1% Carrier billing in 2018: Central & Eastern Europe
  28. 28. AZERBAIJAN Carrier billing in 2018: Central & Eastern Europe
  29. 29. Market profile Median age: GNI per capita: $4,760319 Population: 9 Mobile phones: million yearsmillion AZERBAIJAN 66% Smartphone penetration (of all mobile phones): Credit card penetration: 8%37% Mobile broadband access: 84% Prepaid SIM market share: Debit card penetration: 15% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  30. 30. 1 Azerbaijani Manat (AZN) Transitioner $0.44 3x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 60/100 Recurring support: NO Major merchant deployments: Currency: 18% Taxation info: VAT $0.59 Monthly median revenue (YTD): % denotes YTD change $2 +10% AZERBAIJAN Carrier billing in 2018: Central & Eastern Europe
  31. 31. LOCALIZATION (browser language) 59% Russian 59% 52% TABLET DESKTOP MOBILE 45% 3% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 1 AZN to 6 AZN ($0.6 to $3.5) Price point (in AZN) Carrier billing landscape 55% 35% 10% AZERBAIJAN Price point Popularity % Price point Revenue % 1.18 5% 2% 2.36 63% 50% 3.54 19% 22% 5.89 0% 1% 5.9 13% 25% Carrier billing in 2018: Central & Eastern Europe
  32. 32. BELARUS Carrier billing in 2018: Central & Eastern Europe
  33. 33. Market profile Median age: GNI per capita: $5,600409 Population: 11 Mobile phones: million yearsmillion BELARUS 66% Smartphone penetration (of all mobile phones): Credit card penetration: 13%42% Mobile broadband access: 53% Prepaid SIM market share: Debit card penetration: 39% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  34. 34. 1 Belarusian ruble (BYR) Transitioner $0.3 4x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 69/100 Recurring support: NO Major merchant deployments: Currency: 25% Taxation info: VAT $0.51 Monthly median revenue (YTD): % denotes YTD change $2.4 +9% BELARUS Carrier billing in 2018: Central & Eastern Europe
  35. 35. LOCALIZATION (browser language) 93% Russian 93% 46% TABLET DESKTOP MOBILE 50% 4% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 1 BYR to 6 BYR ($0.5 to $3) Price point (in BYR) Carrier billing landscape 47% 41% 12% BELARUS Price point Popularity % Price point Revenue % 1 2% 0% 1.04 0% 0% 1.5 1% 0% 1.56 0% 0% 2 3% 2% 2.08 0% 0% 2.5 3% 2% 2.6 2% 1% 3.5 40% 36% 3.87 2% 2% 4.5 29% 33% 4.99 18% 23% 6 0% 0% Carrier billing in 2018: Central & Eastern Europe
  36. 36. BULGARIA Carrier billing in 2018: Central & Eastern Europe
  37. 37. Market profile Median age: GNI per capita: $7,580427 Population: 10 Mobile phones: million yearsmillion BULGARIA 55% Smartphone penetration (of all mobile phones): Credit card penetration: 12%53% Mobile broadband access: 22% Prepaid SIM market share: Debit card penetration: 55% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  38. 38. 1 Bulgarian Lev (BGN) Transitioner $0.14 9x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 71/100 Recurring support: YES Major merchant deployments: Currency: 20% Taxation info: VAT $0.63 Monthly median revenue (YTD): % denotes YTD change $2.9 +14% BULGARIA Carrier billing in 2018: Central & Eastern Europe
  39. 39. LOCALIZATION (browser language) 78% Bulgarian 78% 42% TABLET DESKTOP MOBILE 54% 4% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 0.6 BGN to 20 BGN $0.4 to $12 Price point (in BGN) Carrier billing landscape 45% 40% 15% BULGARIA Price point Popularity % Price point Revenue % 0.6 0% 0% 1.2 1% 0% 2.4 65% 43% 4.8 13% 17% 6 20% 34% 9.99 1% 2% 14.99 0% 1% 19.99 1% 4% Carrier billing in 2018: Central & Eastern Europe
  40. 40. SERBIA Carrier billing in 2018: Central & Eastern Europe
  41. 41. Market profile Median age: GNI per capita: $5,310427 Population: 9 Mobile phones: million yearsmillion SERBIA 63% Smartphone penetration (of all mobile phones): Credit card penetration: 15%44% Mobile broadband access: 49% Prepaid SIM market share: Debit card penetration: 57% Gross National Income (2016) Carrier billing in 2018: Central & Eastern Europe
  42. 42. 1 Serbian Dinar (RSD) Transitioner $0.34 4x lower Google Play CPI cost compared to US: GSMA Mobile Connectivity Index Score: 67/100 Recurring support: NO Major merchant deployments: Currency: 20% Taxation info: VAT, 10% WHT $0.01 Monthly median revenue (YTD): % denotes YTD change $3 -0.5% SERBIA Carrier billing in 2018: Central & Eastern Europe
  43. 43. LOCALIZATION (browser language) 58% Serbian 58% 47% TABLET DESKTOP MOBILE 35% 18% TRAFFIC SOURCES CARRIERS SUPPORTED BY FORTUMO CARRIER MARKET SHARES Available pricing: 30 RSD to 960 RSD ($0.3 to $9.6) Price point (in RUB) Carrier billing landscape 53% 31% 16% SERBIA Price point Popularity % Price point Revenue % 30 3% 0% 60 0% 0% 120 15% 6% 180 40% 22% 240 11% 8% 360 8% 9% 696 10% 20% 960 11% 34% Carrier billing in 2018: Central & Eastern Europe
  44. 44. Additional reading Carrier billing for mobile commerce: Kinguin & Orange Poland case study Read now White paper: Carrier bundling for user acquisition and marketing Read now Direct carrier billing in 2017: global market report by Fortumo Read now
  45. 45. https://fortumo.com https://facebook.com/fortumo https://twitter.com/fortumo https://www.linkedin.com/company/fortumo-ltd-?trk=biz-companies-cym Fortumo is a digital enablement platform for app stores and digital service providers for user acquisition, monetization and retention. The company connects service providers with more than 350 mobile operators across Asia, Europe, Latin America, the Middle East and Africa. Service providers use Fortumo’s platform to manage the end-to-end customer lifecycle of mobile users on these networks through the company’s bundling, carrier billing and messaging solutions. Fortumo’s platform is used by thousands of leading digital merchants including Google, Spotify and Electronic Arts. Founded in 2007, Fortumo has offices in San Francisco, Beijing, Delhi, Singapore, Estonia and Hanoi. For more information, please visit: This document is for informational purposes only. Fortumo and the authors make no expressed or implied warranties in this document. Fortumo and the author(s) make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in this document. Any opinions expressed in this document are subject to change without notice. This document may be based on a number of assumptions and different assumptions could result in materially different results. This document should not be regarded by recipients as a substitute for obtaining independent advice and/or the exercise of their own judgement, and is not to be relied upon by recipients. Fortumo and the authors, and any of their members, directors, employees or agents do not accept any liability for any loss or damage arising out of the use of all or any part of this document. Copyright © 2017 Fortumo | All rights reserved.

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