Carrier Billing in 2017: Central & Eastern Europe Market Report by Fortumo Carrier Billing in 2017: Central & Eastern Europe Introduction

Carrier billing in 2017: Central & Eastern Europe Market report by Fortumo Carrier billing in 2017: Central & Eastern Europe Introduction

Fortumo’s market report on Central & Eastern Europe pro les carrier billing landscape in the 10 biggest countries of the region. By population, these countries are Russia, Ukraine, Poland, Romania, Czech Republic, Hungary, Azerbaijan, Belarus, Bulgaria and Serbia. While equal in size to the EU5 (France, Germany, Italy, Spain & UK) or US in terms of population, they are signi cantly more fragmented. Localization of both the digital service provided and payment methods is a key to succeed in the region.

Central & Eastern Europe is in an intermediate phase between Western markets and quickly growing emerging markets. There is relatively high ownership of traditional desktop devices, which means traditional software vendors and PC game developers have signi cant potential in the region. In all of the markets pro led all but one country has reached smartphone ownership above 50%, which opens up new growth opportunities for digital merchants. At the same time, access to bank-based payments remains low, making carrier billing the perfect alternative to collect payments from Central & Eastern Europe.

From this report, you will nd a high-level overview of the digital ecosystem in each country. Additionally, we provide data on carrier billing in the country: money spent per user on digital services as well as pricing dynamics of the market which help you ne-tune your monetization strategy.

In addition to carrier billing we recommend looking into the following local payment methods for the region: Yandex Money, QIWI, WebMoney, Przelewy24, PaysafeCard and Skrill. To learn how to add several payment methods to your checkout without risking revenue loss from cannibalization, check out our white paper.

If you have any questions about the data in this report, please reach out to us at [email protected].

Andrea Boetti Mattias Liivak VP of Global Business Head of Marketing & PR Development & Sales Fortumo Fortumo Carrier billing in 2017: Central & Eastern Europe Russia Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 143 143 39 $13,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Russian Ruble (RUB) = $0.017

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

59% 41% 78% 21% 44% Carrier billing in 2017: Central & Eastern Europe Russia Carrier billing landscape December 2016 - February 2017

Quarterly average Price point Popularity % Price point Revenue % revenue per user: $16.8 42% 31.8%

% denotes YoY change 24% 23% 19.4% 19.8%

Quarterly median 9.4% 7.9% 12% 6.1% 5% 8.5% revenue per user: 5.1% 3.8% 1.5% 6.9% 5.4% 1.2% 2.5% $6.7 10% 3.6% 3.1% 0.8 1.12 2.23 2.28 3.82 3.91 4.78 4.89 7.96 8.14 % denotes YoY change Price point (in USD)

Market share of carrier billing in digital gaming (SuperdataResearch): 22% (2nd most popular payment method)

76% 34% MOBILE CARRIER TRAFFIC 19% MARKET 25% SOURCES DESKTOP SHARES 5% 24% TABLET

15% LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 84% 2% Recommended, 84% of users have browser language set to Russian.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo. Carrier billing in 2017: Central & Eastern Europe Ukraine Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 45 45 40 $4,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Ukrainian Hryvnia (UAH) = $0.037

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

58% 16% 91% 28% 40% Carrier billing in 2017: Central & Eastern Europe Ukraine Carrier billing landscape December 2016 - February 2017

Quarterly average Price point Popularity % Price point Revenue % revenue per user: 40.1% 37.8% $6.8 10% % denotes YoY change 24.6% 30.5% 26.7%

Quarterly median 12.9% 10.2% revenue per user: 2.8% 6.1% 0.5% 2.3% 0.4% $3.3 7% 2.1% 3% 0.18 0.54 0.72 0.73 1.09 1.81 1.82 % denotes YoY change Price point (in USD)

Market share of carrier billing in digital gaming (SuperdataResearch): 7% (4th most popular payment method)

56% 43% MOBILE CARRIER TRAFFIC 32% MARKET 35% SOURCES DESKTOP SHARES 12% 21% TABLET

1% LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 78% Localization: Recommended, 78% of users have browser language set to Russian. Carrier billing in 2017: Central & Eastern Europe Poland Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 39 39 40 $14,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Polish Zlot (PLN) = $0.24

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

53% 65% 44% 17% 50% Carrier billing in 2017: Central & Eastern Europe Poland Carrier billing landscape December 2016 - February 2017

Quarterly average Price point Popularity % Price point Revenue % revenue per user: 41.3% $19.6 34% 31% 25.3% % denotes YoY change 21.5%

13.4% 14.4% Quarterly median 10% 10.6% 5.2% revenue per user: 6.9% 0.3% 0.3% 11.1% 1.3% 0.1% 0.2% 1% 2% $12.1 28% 3% 0.9% 1.15 1.2 1.73 1.81 2.59 2.71 5.47 5.72 7.19 7.53 % denotes YoY change Price point (in USD)

Market share of carrier billing in digital gaming (SuperdataResearch): 19% (2nd most popular payment method)

58% 30% MOBILE CARRIER TRAFFIC 35% MARKET 28% SOURCES DESKTOP SHARES 7% 26% TABLET

16% LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 94% Recommended, 94% of users have browser language set to Polish.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo. Carrier billing in 2017: Central & Eastern Europe Romania Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 19 19 41 $10,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Romanian Leu (RON) = $0.23

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

50% 56% 55% 12% 46% Carrier billing in 2017: Central & Eastern Europe Romania Carrier billing landscape December 2016 - February 2017

Quarterly average Price point Popularity % Price point Revenue % revenue per user:

$27.6 26% 29.2% 25.4% % denotes YoY change 25.4% 16.2%

8.7% Quarterly median 8.8% 9% 7.6% revenue per user: 8.2% 6.2% 6.5% 7.1% 5.8% 7.9% 7.3% 7.5% 2.7% $11.4 25% 4.4% 4.6% 1.4% 1.25 1.26 3.76 3.79 6.26 6.31 12.52 12.63 12.85 25.71 % denotes YoY change Price point (in USD)

Market share of carrier billing in digital gaming (SuperdataResearch): 16% (3rd most popular payment method)

68% 37% MOBILE CARRIER TRAFFIC 27% MARKET 29% SOURCES DESKTOP SHARES 5% 24% TABLET

10% LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 69% Recommended, 69% of users have browser language set to Romanian.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo. Carrier billing in 2017: Central & Eastern Europe Czech Republic Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 11 11 42 $18,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Czech Koruna (CZK) = $0.039

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

58% 54% 37% 26% 64% Carrier billing in 2017: Central & Eastern Europe Czech Republic Carrier billing landscape December 2016 - February 2017

67.1%

Quarterly average 41.6% Price point Popularity % Price point Revenue % revenue per user: $19.2 5% % denotes YoY change

15.9% 16% Quarterly median 8.1% revenue per user: 5.6% 4.3% 4.8% 2.3% 5.2% 2% 10.1% 1.7% 1.4% 5.6% 0.7% 2.2% 0.5% $5.8 37% 3.9% 0.8% 1.15 1.2 1.73 1.81 2.59 2.71 5.47 5.72 7.19 7.53 % denotes YoY change Price point (in USD)

Market share of carrier billing in digital gaming (SuperdataResearch): 21% (3rd most popular payment method)

43% 39% MOBILE CARRIER TRAFFIC 52% MARKET 36% SOURCES DESKTOP SHARES 5% 25% TABLET

LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 92% Recommended, 92% of users have browser language set to Czech.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo. Carrier billing in 2017: Central & Eastern Europe Hungary Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 10 10 42 $13,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Hungarian Forint (HUF) = $0.0034

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

61% 56% 43% 12% 60% Carrier billing in 2017: Central & Eastern Europe

Hungary 62.1% Carrier billing landscape December 2016 - February 2017

Quarterly average Price point Popularity % Price point Revenue % revenue per user: $13.5 10% 39% 36.9% % denotes YoY change

14.7% 14.7%

Quarterly median 5.2% revenue per user: 4.1% 8.1% 0.2% 0.1% 9.5% 1.2% 0.9% 0.1% 0.1% 3.1% $5.1 (unchanged) 1.02 1.04 1.69 1.73 3.39 3.47 6.78 6.94 % denotes YoY change Price point (in USD)

84% 46% MOBILE CARRIER TRAFFIC 10% MARKET 31% SOURCES DESKTOP SHARES 6% 23% TABLET

LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 96% Recommended, 96% of users have browser language set to Hungarian. Carrier billing in 2017: Central & Eastern Europe Azerbaijan Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 10 10 31 $8,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Azerbaijan Manat (AZN) = $0.56

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

31% 37% 84% 9% 16% Carrier billing in 2017: Central & Eastern Europe Azerbaijan 55.3% Carrier billing landscape December 2016 - February 2017

45.2% Quarterly average Price point Popularity % Price point Revenue % revenue per user: $13.7 8%

% denotes YoY change 22%

15.3% 10.1% Quarterly median 17.9% revenue per user: 5.4% 7.5% 0.5% 1.5% 1.8% 1.7% 0.3% 1% 0.2% 7.7% 1.2% 0.1% $6.3 24% 0.6% 4.7% 0.58 0.64 1.19 1.28 1.79 1.92 1.93 2.97 2.98 3.21 % denotes YoY change Price point (in USD)

41% 55% MOBILE CARRIER TRAFFIC 52% MARKET 41% SOURCES DESKTOP SHARES 7% 7% TABLET

LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 57% Recommended, 57% of users have browser language set to Russian.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo. Carrier billing in 2017: Central & Eastern Europe Belarus Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 10 10 40 $7,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Belarussian Ruble (BYR) = $0.00005

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

59% 42% 53% 14% 40% Carrier billing in 2017: Central & Eastern Europe Belarus Carrier billing landscape December 2016 - February 2017

Quarterly average Price point Popularity % Price point Revenue % revenue per user: 36.4% $10.9 26% % denotes YoY change 30.8% 18.5%

11.6% Quarterly median 9.8% 18.1% revenue per user: 6.5% 5.4% 8.8% 2.2% 10.6% 3.6% 7.1% 4.7% 8% 1.8% 3.1% 5.3% $6.7 20% 4.4% 3.5% 1.22 1.27 1.52 1.58 1.71 1.78 1.83 1.9 2.2 2.29 % denotes YoY change Price point (in USD)

37% 47% MOBILE CARRIER TRAFFIC 60% MARKET 41% SOURCES DESKTOP SHARES 3% 11% TABLET

LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 95% Recommended, 95% of users have browser language set to Russian.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo. Carrier billing in 2017: Central & Eastern Europe Bulgaria Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 7 7 42 $8,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Bulgarian Lev (BGN) = $0.54

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

53% 43% 22% 12% 56% Carrier billing in 2017: Central & Eastern Europe Bulgaria Carrier billing landscape December 2016 - February 2017

47.2% 45.7% Quarterly average Price point Popularity % Price point Revenue % revenue per user: $12.3 18% % denotes YoY change 19.3% 18.1% 12.5%

Quarterly median 15% 9.4% 4.2% revenue per user: 11.8% 5.3% 2.2% 0.8% 1% 2% 0.4% 0.3% 0.5% 0.3% $7.7 2% 4% 0.1% 1.27 1.3 2.53 2.6 3.16 3.25 5.27 7.91 10.54 10.81 % denotes YoY change Price point (in USD)

30% 45% MOBILE CARRIER TRAFFIC 66% MARKET 40% SOURCES DESKTOP SHARES 4% 15% TABLET

LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 71% Recommended, 71% of users have browser language set to Bulgarian.

Only the 10 biggest price points by revenue have been brought out to illustrate pricing dynamics. For a full overview of all price points available in the market, please contact Fortumo. Carrier billing in 2017: Central & Eastern Europe Serbia Market proﬁle December 2016 - February 2017

Population: Mobile users: Median age: GNI per capita: 9 9 42 $6,000 million million years Gross National Income (IMF 2014 estimate)

Currency: 1 Serbian Dinar (RSD) = $0.0085

Smartphone Mobile penetration (of all broadband Prepaid SIM Credit card Debit card mobile phones): access: market share: penetration: penetration:

51% 44% 49% 15% 58% Carrier billing in 2017: Central & Eastern Europe Serbia Carrier billing landscape December 2016 - February 2017

Quarterly average Price point Popularity % Price point Revenue % revenue per user:

$15.5 14% 30.8% 25.5% % denotes YoY change 21.1%

12.7% 15.4% 12.6% Quarterly median 8.5% 9.6% 14% 3.2% revenue per user: 12.7% 6.5% 3.5% 2.2% 3.6% 1.8% 6.3% $8.1 30% 4.3% 3.5% 2.3% 1.5 1.53 2 2.04 3 3.06 5.79 5.91 7.99 8.15 % denotes YoY change Price point (in USD)

31% 53% MOBILE CARRIER TRAFFIC 39% MARKET 31% SOURCES DESKTOP SHARES 30% 16% TABLET

LOCALIZATION CARRIERS SUPPORTED BY FORTUMO 57% Recommended, 57% of users have browser language set to Serbian.

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Read now Fortumo is a mobile payments company that enables direct carrier billing with more than 350 mobile operators in 90+ countries. Fortumo's payment products work across a wide range of platforms including desktop devices, smartphones, feature phones, tablets and smart TV-s. These products give consumers a simple, 1-click payment method to charge online purchases to their phone bill. For app stores, digital media companies and game developers, Fortumo provides one integration with 350 mobile operators as well as a single point of contact for settlements, reporting, support and infrastructure upgrades. Founded in 2007, Fortumo has oces in Estonia, San Francisco, Beijing, Delhi, Singapore & Hanoi and is backed by Intel Capital and Greycroft Partners. https://fortumo.com https://facebook.com/fortumo https://twitter.com/fortumo https://www.linkedin.com/company/fortumo-ltd.

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