The number of smartphones in the networks of Ukrainian operators exceeded 20%

By the end of June there were more than 14 mn smart devices in the networks of Ukrainian operators. Capital received such data from representatives of the Kyivstar, MTS Ukraine and Astelit (life:)) companies. Tablets operating on mobile operating systems (OS) accounted for nearly 3% of the total number of devices, while the rest of the share falls on smartphones.

Overall, the number of smart devices has increased by 50% over this year and the level of their penetration exceeded 20%. Such an indicator may be a starting point for new services that will create new earning potential and open windows of opportunity for Ukrainian operators.

Android ahead again

Approximately the same number of smart devices operates in the networks of the two largest mobile operators in Ukraine: Kyivstar has approximately 5.6 mn of and MTS Ukraine – 5.4 mn. In the life:) network, according to Director of the PR Department Oksana Rudyuk, their share is 31%. Based on Capital’s estimates, that is approximately 3 mn devices.

Director of Corporate Communications at Kyivstar Mykhailo Shuranov says the most significant growth was shown by Android smartphones – 136%. The number of iOS devices increased by 39%.

MTS Ukraine registered even more rapid growth in the number of Android devices: their amount increased by almost 2.5 times compared to the same period in 2013. The number of owners of iOS smartphones has grown by 47%.

Life:) network has now by 157.3% more Android-based devices than a year ago. The number of Windows devices has increased by 58.0%, and iOS – by 34.8%. At the same time, the number of outdated phones operating on Bada (Samsung) and Symbian (Nokia) platforms is in decline.

More smartphones – more Internet

According to Ericsson, by the end of 2014 the penetration of smartphones in Ukraine will reach 25% and mobile data traffic will increase by 52%, reaching the level of 62 petabytes – a monthly average of 300 MB per user. “In many ways this traffic growth is due to the penetration of smartphones and other mobile devices with Internet access,” said CEO of Ericsson in Ukraine Wojciech Bajda.

According to statistics of life :), smartphone owners use a bigger set of mobile services than users of regular phones. Traffic consumption among such subscribers is higher and they prefer Internet communication to speaking on the phone. Among life :) subscribers, for example, consumption of mobile Internet among users of smartphones increased by 67.4% and use of voice services – only by 2.6% over the last year. This is reflected in the operator’s income statements. According to their estimates, every smartphone owner spends 1.5 – 2 times more on telecommunication services than users of regular devices.

Bad time for 4G

In the case of issuance of licenses for 3G-communication the rate of growth of the number of smartphones in the mobile networks will accelerate, says Customer Equipment manager at Kyivstar Pavlo Sakhno. Now this process is inhibited by legal restrictions, he adds.

Global experience shows that in those countries where 3G has already been launched on the market, data traffic increases by 3–10 times, Baida emphasized. In 4G networks the traffic may increase by 5 times (assuming that the country already has developed 3G networks). Today, in such countries as Japan, Korea and the U.S. data traffic accounts for 50% of revenues and higher, said the expert. Such changes open new business models for operators, enabling them to develop and outgrow the existing proposals. For example, using the latest analytical tools (OSS / BSS), companies can analyze user behavior, the nature and level of consumption of communication services and develop unique package deals, such as special rates for data exchange based on such information.
Increased penetration of smartphones in Ukraine mainly shows the market’s readiness to 3G, pointed out Director of the Public Relations Department at MTS Ukraine Viktoria Ruban. “25% is the minimum sufficient number of devices, which defines the active use of new technologies and services based on them,” said Ruban. Speaking of LTE (4G), Ukraine currently has an insufficient number of devices supporting this technology. Given this, the Ukrainian market is less prepared for its launch, added the expert.