Session 5
Toward Broadband Society
Hoang Tuyet Lan - Vietnam
VNPT Group.
Social Republic of VietNam
› Population: 86+ Millions
› Household: 23 Millions
› GDP Growth 2005-2010: 7%
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 2
Economy Development
Nominal GDP Growth of Vietnam
[tn VND]
600
+7%
400
200
0
00
01
02
03
04
05
06
07
08
Source: BMI, IMF, General Statistics Office of Vietnam, CIA The World Factbook, Detecon Analysis 2010
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 3
09
10f
11f
Society Structure
Urbanization of Vietnam (% of Population)
› Young population
› Market fragmentation
› Mobility
Urban 20%
21%
24%
27%
27%
27%
28%
29%
35%
› Urbanization
Rural 80%
1990
79%
1995
76%
2000
73%
73%
73%
72%
71%
2005
2006
2007
2008
2010
Source: BMI, General Statistics Office of Vietnam and Detecon Analysis 2010
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 4
65%
2020
Customer Behavior
Consumer Expenditure (USD)
1,500
Poorest 20%
Middle 60%
Richest 20%
Richest 10%
1,000
500
0
2000
2000
2007e
2007
2008f
2008
Source: BMI, General Statistics Office of Vietnam and Detecon Analysis 2010
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 5
2009f
2009
2010f
2010
2012f
2012
Expanding Telecom Business
Internet User
30000000
25000000
20000000
15000000
10000000
5000000
0
2003
2004
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 6
2005
2006
2007
2008
2009
Expanding Telecom Business…
Revenue
5.000,00
4.000,00
Mobile
3.000,00
Internet
2.000,00
Fixed
1.000,00
0,00
2006
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 7
2007
2008
2009
To Broadband Society
Broadband Infrastructure
› Year 2002 ADSL, ADSL++
› Year 2009 FTTx with GPON
› Year 2009: Explosion of 3G Mobile Network
– 4 Licenses with 20MHz to Operator
– 6.000 Node B in-services
› Year 2010:
– 25.000 Node B in-services
– Trial LTE successfully
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 9
Vietnam Operators
› Fixed Broadband: 8
› Mobile Operator: 7
› ISPs service: 90
› Mobile MVNO: 2
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 10
Service Provided
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 11
Pricing Strategy
› Maintain Price level for Data from 2G to 3G
› Pay as you go
– Speed Based
– Volume Based
– On-time Based
› Prepaid volume Package
› Postpaid monthly package
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 12
Pricing Strategy…
› Customize Package
› FMC fixed broadband and mobile broadband
› FMC 2G & 3G
› Bundled Minutes & Data
› Package Upgrading.
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 13
To Future: Network
› Year-2015 Mobile broadband:
– Coverage: 85% population
– Rank: Vietnam is on top 65 countries in ITU’s list
› Year-2020: Mobile broadband
– Coverage: 95% population
– Rank: Vietnam is on top 55 countries in ITU’s list
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 14
Service Trends
90
Mobile
Broadband
growth
Subscriptions (million)
80
70
60
50
40
30
20
10
0
2010
2015
Phone Data
Mobile PC
Source: MIC
This slide contains forward looking statements
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 15
Services
over
the top
The network a
differentiator
Anywhere internet 24/7, please
90% wants
anywhere access
95% of the
Smartphone users
want anywhere
access
Internet everywhere is a pre-requisite, not an option
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 16
To Future: Services
› New Service Provider on
Content
› More Services Application
–
–
–
–
VAS
M-Commerce
Rich Communication Suites
Location-Based Services
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 17
To Future: Market Share
› Increasing 3G services
› Maintain 2G services
Mobile-broadband share in Vietnam
[000]
2G/2.5G
160.000
3G
140.000
120.000
100.000
80.000
60.000
40.000
20.000
0
2007
2008
2009
Source: Pyramid, 2010; Detecon analysis
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 18
2010
2011
2012
2013
2014
To Future: Modernizing Revenue
› Increasing Revenue from 3G services
› Moving from Voice to Data revenue
Conectivity, 8%
,
Content, 22%
S MS , 24%
Toward Broadband Soceilty | MIC Vietnam | 2011-02-17 | Page 19
Voice, 46%