These registration data can be used for the access to the wide range of services and their functions all around the world anytime:

J’son and Partners Consulting presents main results of the research of the mobile identity market in

Russia and in the world. The main directions of mobile identity sector in the world, existing business-models, information about leading service providers and market forecast until 2017 are presented in the report.

Definition and possibilities to use the mobile identity

Mobile identity is an identification (hard and software) of the user on the base of using mobile phone

(via SIM or SD card).

The main “instruments” of the mobile identity are: One-time password;

Personal identification numbers (PIN) and passwords; Open source certificate (PKI);

Biometric data;

Security tokens (Security Assertion Markup Language - SAML);

Java Web tokens, such as OpenID and OAuth Connect (in developing countries).

These registration data can be used for the access to the wide range of services and their functions all around the world anytime:

Allowances and benefits (for ex. medical services);

Access to the “physical” sources (for ex. access to the building); Access to the “logical” sources (for ex. access to the network); Electronic signatures for online-transactions;

Access to other digital terminals (for ex. access to the laptop system); Data security on the device (for ex. Data encryption);

Access to the corporate information;

Access to the cloud services and applications;

Mobile identity market. Current state and global development forecasts

Mobile identity technologies are gaining popularity all over the world, including шт North Europe, Baltics, West Europe, East Europe, USA, Argentina and in some African countries. Leaders by the use of mobile identity are: Finland Turkey Sweden Estonia Sri-Lanka.

Fig. 1. Mobile identity: Regional market structure

Source: J’son & Partners Consulting

Nevertheless the penetration of mobile identity among the users of mobile identity services is low due to early stage of development and it can be counted by thousands of users.

Table 1. Key market players of mobile identity by countries

Country Solution provider Operators’ solutions

Finland Valimo DNA, Telia Sonera, Elisa

Estonia Valimo EMT

Sweden Valimo Telenor

Sri-Lanka Dialog Dialog

Turkey Turcell Turcell

Source: J’son & Partners Consulting

The number of subscribers of mobile identity in countries where the technology have been already implemented is very high. For example – over 80% in Turkey per year, over 120% in Europe and 300% in Estonia. Globally these figures are even higher due to the new territories and “low base” effect.

Fig. 2. Dynamics of market solution in the Mobile Identity sector 2012-2017, mln.people

Source: J’son & Partners Consulting

Mobile identity is on early stage of development in many countries. Nevertheless legislative regulations are preparing already in many countries, where electronic person identity business is trying to get the market share. Documents that identify the personality (provided to people) are supporting nowadays the electronic technologies (identification card - ID). In some countries electronic ID is on the second stage of development and millions of people are using their electronic IDs regularly.

Table 2. Development of national systems of electronic identity

USA UK European countries

National Strategy for Trust Identities in Cyberspace (NSTIC) program is aimed to standardize the rules for electronic identity safety

Identity Assurance Program (IDAP) has been launched, within which mobile operators will receive the right to

become a certified providers of mobile identity

The common European rules of electronic signature,

identity and authentication are developing

Source: J’son & Partners Consulting, GMSA

Mobile identity in Russia. Current market state and development forecast

The development of mobile identity solutions on Russian market is mostly happening due to the program - “Electronic government”. The main providers of mobile identity solutions are Sitronics Microelectronic and “Alladin R.D.”

Due to the tasks which mobile identity helps to simplify, solutions are gaining more and more popularity. Overseas this technology is being used regularly in the following solutions:

0 20 40 60 80 2012Е 2013F 2014F 2015F 2016F 2017F

Access to the government services; Mobile banking;

E-commerce,

Corporate tasks in access management.

Table 3. Perspective sectors and industries for mobile identity

Sector/Direction The necessity of service The potential “demand” _{on service}

Corporate safety Easier and more protective access to _{the building/places etc} Average

Parking More easier and faster registration of _{users, time save, etc} Average

Smart houses Mobile management of “smart house” High

Retail

The combination of mobile identity technology, e-wallet and loyalty programs in order to execute the payments and receive bonuses

High

E-trading (b2b) More easier and faster registration of _{the participants} Average

Source: J’son & Partners Consulting

Mobile identity though is still on early stage of development in Russia. This technology is already took market shares in many countries and has a potential growth of 3 bln.USD until 2017. The main barriers are legislation, lack of common technological standards, conservative views of population.

According to J’son & Partners Consulting mobile identity has a good potential on Russian market (approx. 7mln. people (subscribers’ base) until 2017), nevertheless, the technology is still not widely used.

Detailed results of the research are presented in the full version of the

Report: «Development of marketing strategy and recommendations

for Mobile Identity service implementation in Russian Federation

(taking into consideration the international experience and successful

business-cases). Analysis of the Russian market.»

1.1. Methodology

1.2. Definitions and terminology

1.3. Existing models of “Mobile Identity”

2. Implementation of Mobile identity. Global experience

2.1. Evaluation of global market:

2.1.1. Market evaluation of the Mobile Identity sector, mln.people, 2012 2.1.2. Forecast of Mobile identity market growth, 2013-2017, mln.people 2.1.3. Market evaluation of solutions in Mobile Identity, mln.USD, 2012

2.1.4. Forecast of market growth (solutions in Mobile Identity, 2013-2017, mln.USD) 2.2. Analysis of some national successful solutions (business-cases) in Mobile Identity

2.2.1. Finland 2.2.2. Sweden 2.2.3. Estonia 2.2.4. Turkey 2.2.5. USA 2.2.6. Other countries

2.3. Analysis of Mobile Identity (solutions) providers 2.3.1. Valimo Wireless

2.3.2. Turkcell 2.3.3. Others

3. Evaluation of Russian market potential

3.1. Analysis of the current solutions

3.2. Analysis of potential customers’ preferences in the field of Mobile Identity 3.3. Definition of the key drivers for building the forecast for 2013-2017

3.4. Forecast of Mobile Identity market in Russia in 2013-2017

4. Recommendations for Mobile personal identity implementation in Russia

4.1. Determination of possible strategies: implementation of Mobile identity in Russia based on global experience and market evaluation

4.2. Evaluation of the most interesting market segments 4.2.1. B2B & B2C

4.2.2. Sectoral/Industry analysis 4.2.3. Geographical analysis 4.2.4. Consumers’ preferences

4.3. Recommendations for technological concept 4.4. Service monetization, recommendations 4.5. Promotion of services, recommendations

4.6. Evaluation of a possible market share of mobile operator on Mobile Identity market in Russia

5. Conclusions List of Figures

Fig. 1. Mobile Identity market structure

Fig. 2. Market dynamics (Mobile Identity), 2012-2017, mln. people Fig. 3. Number of smartphones in the world, bln. pcs.

Fig. 4. Mobile Identity market dynamics, 2012-2017, mln.USD

Fig. 5. Mobile-ID technology (currently used technology), geography, 2012

Fig. 6. Demand on Mobile Identity services by mobile operators’ susbcribers in Finland, 2011 (% of pollees)

Fig. 7. Working scheme of Mobile identity in Finland

Fig. 8. Allocation of subscribers’ base among the mobile operators in Turkey, 2012

Fig. 9. The principal scheme of mobile identity technology implementation by Turkcell from the point of users’ view, 2012

Fig. 10. Main types of services used by subscribers of mobile identity, Turkcell, 2012. Share of number of transactions.

Fig. 11. The comparison of subscribers (catergories) ARPU of Turkcell, 2012, USD Fig. 12. The content of the “working group” of Mobile identity program, 2013 Fig. 13. The implementation of mobile identity solutions by Valimo

Fig. 14. The principal scheme of mobile identity technology implementation by Turkcell, 2012 Fig. 15. Spheres of use of MobileInk by Sicap solutions

Fig. 16. Solutions in Mobile identity sphere by «Alladin R.D.» Fig. 17. Mobile commerce market volume, mln. RUB, 2008-2016

Fig. 18. Mobile content market structure and volume, mln. RUB, 2008-2016 Fig. 19. Market volume of NFC-transactions in Russia

Fig. 20. Number of cellular subscribers in Russia, mln. people, penetration rate of smartphones, % Fig. 21. Forecast of Russian Mobile Identity market development, thousands of people, 2013-2017. Evolution steps (scenario)

Fig. 22. Development forecast of Russian Mobile identity market, thousands of people, 2013 – 2017, optimistic scenario.

List of companies mentioned in the Report: Avea Dialog DNA GSMA EMT Elisa MasterCard SICAP TeliaSonera Turkcell Telenor UsabilityLab YapiKrediBank Valimo Alladin R.D. Alfa-bank Bank of Moscow Banki.ru VTB 24 Garanti Bank Megafon Raiffeisen Russian Standard Rostelecom Sberbank Sitronics TKS Bank TransCreditBank Uganda Telecom

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For additional information please contact:

Pavel Ermolich

Commercial Director

Pavel.Ermolich@json.ru