Digital Landscape: Eastern Europe Leads the Emerging World in Digital Services

Eastern Europe leads the emerging world in fixed-line networks

Eastern Europe has traditionally had strong fixed-line networks compared to other emerging nations, with a relatively high proportion of fibre connections. This means that the region has some of the fastest internet globally.

Over 2016-2020 the region will see major growth in mobile broadband uptake

Demand for cellular data services is rising fast among consumers in the region, and operators have responded by investing heavily in 4G LTE services. Over the forecast period the region will see improvements in mobile connectivity, which will drive up data consumption.

Digital commerce presents lucrative opportunities across the region

Countries such as Russia and Poland are fertile grounds for digital commerce growth, the latter being a regional hub for contactless payments. However, the culture of cash transactions impedes digital transactions.

Ageing population and online security concerns negatively impact the digital sector

Eastern Europe’s population is ageing fast, and the region’s consumers are wary of sharing personal information online. While this poses challenges for the growth of the digital sector, steps to improve online trust and security are being taken in the European Digital Agenda.

Russia, Poland and Hungary are important markets to watch

Russia is the region’s largest telecom market, and provides scope for digital commerce expansion despite a weak economy, high cash usage, and online security concerns. Hungary and Poland have high 4G LTE coverage and online purchases, especially of consumer electronics, are picking up.