Digital Landscape in Eastern Europe

Key Findings

Eastern Europe is the emerging world’s digital leader, with strong fixed-line networks

Eastern Europe’s competitive telecom sectors and investment-friendly regulations have resulted in robust fixed-line connectivity. The region has high next generation broadband access, with Czech Republic the regional leader in digital connectivity. EU member states are implementing projects to provide universal next generation broadband coverage by 2020.

Robust investment in high-speed mobile broadband will drive next phase of digital development

Telecom operators in the region are investing heavily in 4G LTE networks as data demand surges, especially among the region’s youth. Over the forecast period, some of the major regional markets will have near universal 4G LTE access, coupled with the possible rollout of 5G services.

Russia, Poland and Romania are the key growth markets

Russia will witness the biggest improvements in the Digital Connectivity Index ranking over the forecast period. Despite economic weakness, the country has a vibrant start-up landscape and plans to roll out 5G services over the next three years. Poland is a regional leader in digital proximity payments, while Romania has some of the fastest broadband speeds globally.

Digital commerce will provide immense growth opportunities

Digital commerce will be the key growth segment going forward. The region’s good digital infrastructure and growing smartphone penetration will fuel digital transactions. Russia is the regional leader in digital transactions, while Poland and Hungary are also promising markets. However, high cash usage and online security concerns pose challenges.

The new European data protection law will address online security concerns and drive digital growth

Online data security is a concern among consumers, and this affects digital transactions, especially in countries where data privacy is a sensitive issue. However, the new European data protection law is expected to address these concerns and drive digital purchases going ahead.