Mobile Communication Report
Transcript of Mobile Communication Report
VN Mobile Communications Market Report
By NADIA PHAMOctober 2008
Key Points
VN Social DemographicMarket OverviewVN Business Environment Industry
SWOTTotal Market Volume Growth, 1995-
2008VN Mobile Market Share, 2007 Industry Trend /ForecastsVN Mobile Communications
OperatorsCoverage & Products/ServicesOperators SWOT Analysis
Vietnam Socio Demographic 59 provinces and 5 municipalities
Population (2006) : 84.1 mill.
Population growth (2006) : 1.2%
Total fertility rate (2004) : 2.3
Life expectancy at birth (2004) : 71 years
Adult literacy rate (2004) : 93.9%
Urban population (2006) : 27.1%
Urban pop. in largest 6 cities : 72%
Average household size : 5.4
Non-agro workforce (2004) : 40%
Market Overview
The mobile communications market was established in 1992 in Hanoi and HCMC with 2 state-
owned national GSM 900 Mhz networks: MobiFone and Vinaphone of VN Posts &
Telecommunications Copration (VNPT)
6 key operators : MobiFone (GSM 900 Mhz, 1995), Vinaphone (GSM 900 Mhz, 1996), Viettel
(GSM 900 Mhz, 2004), S-Fone (CDMA 800, 2003), HT Mobile (CDMA 800, 2006), EVN
Telecom (CDMA 450, 2005)
At the time of writing this report, VN has approximately 50 mils mobile subscribers. Viettel
remains market leader with a 29% market share, ahead of MobiFone and Vinaphone on 28%
and 25%, respectively. Approximately, 90% of all subscribers are prepaid subscribers.
The low ARPU (Average Revenue Per User) rates of around US$6 per month, one of the lowest
rates in Asia, suggests that the market is not mature with regards to value-added services and
that intense competition to low tariff setting
Mobile Technology : GSM (1992, 82% of mobile market by the end of 2007); CDMA (2004); 3G
(testing), WiMAX (testing)
VN Business Environment Industry SWOT
WEAKNESSESLack of key strategic investors in the sector’s main operatorsAlthough communications are relatively advanced in the larger cities, many rural areas have little or no access to any telecommunications services
VN Mobile Telecommunicati
ons Market
Total Market Volume Growth, 1995-2008
Year
Subscribers Revenue (US $ mil)
1995
23,500 27
1996
69,000 56
1997
120,000 96
1998
212,000 147
1999
328,700 202
2000
815,000 248
2001
1,297,800 310
2002
1,722,000 420
2003
2,760,000 500
2004
4,634,300 650
2005
7,900,500 1,000*
2006
16,121,100 1,750*
2007
36,263,100 3,200*
2008
60,000,000 * -
19951996
19971998
19992000
20012002
20032004
20052006
2007
Market Trend
SubscribersRevenue (US$ thousands)
Source: BMI Report 2008
Notice: * estimated figures
VN Mobile Market Share, 2007
Source: MIC Annual report
* Data updated to Jul 2007
Vinaphone
Mobilefone
Viettel
S-Fone
EVN
HT Mobile
Operator Subscribers
Market share
Vinaphone 9,100,000 25.4 %
Mobifone 9,900,000 27.6 %
Viettel 10,400,000 29.1 %
S-Fone 3,400,000 9.5 %
EVN 2,800,000 7.8%
HT Mobile 205,000 0.6%
TOTAL 35,805,000
100%
• Viettel is the market leader although it had been launched afterVinaphone and Mobifone
• Viettel, Mobifone and Vinaphone continute to dominate the mobile sector• HT Mobile, in Apr 2008, started to migrate customers away from its CDMA
networks towards GSM technology• 3G & WiMAX technology are about to launch, which will be a revolution
Industry Trend/Forecasts
Source: ITU & BMI report
2005 2006 2007 2008e 2009f 2010f 2011f 2012f
No. of Mobile Phone Subscribers ( thousands)
9,300 18,980 35,805 56,630 69,455 85,280 99,105110,93
0
No. of Mobile Phone Subscriber/100 Inhabitants (%)
11.0 22.2 41.4 67.8 78.1 94.6 108.5 119.8
No. of Mobile Phone Subscribers/100 Fixed Line Subscribers (%)
143.5 204.1 313.0 435.9 499.7 580.1 639.4 688.2
No. of 3G Phone Subscribers (thousands)
0 0 100 700 1,360 2,100 3,050 4,021
3G Market as % of Entire Mobile Market (%)
0.0 0.0 0.3 1.2 2.0 2.5 3.1 3.6
Notice: * e = estimated * f = forecast * ITU : International Telecommunications Union * BMI: Business Monitor International Ltd.
Mobile Communications Operators
VINAPHONEEstablished on June
1997Frequency band: GSM
900 MhzSubscribers: 7,500,000
VIETTELEstablished on October
2004Frequency Band: GSM
900 MhzSubscribers: 14,000,000
HTMOBILEEstablished on Nov 2006Frequency Band : CDMA
850 Mhz Under constructuring,
change to GSM
EVN TelecomEstablished in 2005
Frequency Band: CDMA 450 Mhz
Subscribers: 182,500
SFONEEstablished on July
2003Frequency Band: CDMA 2000-1x,
Suscribers: 2,351,600
MOBIPHONEEstablished on April
1993Frequency Band: GSM
900 MhzSubscribers: 12,000,000 Total
Market Volume:
36,263,100
Source: MIC Annual report 2007* MIC : Ministry of Information and Communications
Mobile Communications Operators
VINAPHONEState-owned (VNPT)
Managed by GPC ( Vietnam Telecom Services Company)
a subsidiary of VNPTPartners: Motorola & Siemens AG, Alcatel
VIETTELOwned by the
Ministry of DefencePartners: Ericsson
HTMOBILEHutchinson Telecom
(Hongkong-based company) joint with Hanoi Telecom
Partners: NortelHalted investment in
September 2007EVN Telecom
Owned by Vietnam Power Telecom
( EVN’s subsidiary)Partners: Lucent
Technologies
SFONEMajority owned by Saigon PostTel Copr (with VNPT as its 2nd largest shareholder) and SK Telecom from KoreaPartners : LG Electronics Inc,
UTStarcom
MOBIPHONEState-owned (VNPT)
VMS (VN Mobile Telecom Services) and
CIV (Comvik International Vietnam)
Owners and
Partners
Source: MIC Annual report 2007* MIC : Ministry of Information and Communications
Mobile Communications Operators
MOBILE COMMUNICATIONS SUBSCRIBER GROWTH ( 2003-2007)
Operator
2003 2004 2005 2006 2007
SubscribersGrowth rate
(%)Subscribers
Growth rate
SubscribersGrowth rate
SubscribersGrowth
rateSubscribe
rsGrowth
rate
Vinaphone
1,700,000 - 2,500,000 47% 3,442,800 38% 5,353,700 56% 7,500,000 40%
MobiFone1,035,5000 - 1,849,300 79% 2,677,900 45% 5,540,000 106% 12,000,000 117%
Viettel - - 119,000 - 1,485,500 1148% 4,627,900 211.5% 14,000,000 202.5%
S-Fone30,000 - 166,000 453% 195,000 17.5% 737,000 278% 2,351,600 219%
HT Mobile
- - - - - - - 200,000 -
EVN- - - - - - - 182,500 -
Source: Vietnam Telecommunications Report Q3 2008 , BMI Ltd.* Data of year 2007 updated to the end of 2007
Coverage & Products/Services
No. of BST GPRS Coverage (cities)
Vinaphone 2500 16/64
Mobifone 2500 40/64
Viettel 7000 64/64
S-Fone 715 64/64
COVERAGE
Notice: * BTS: Base Transceiver Station* GPRS: General Package Radio Service* Products & Services : see more details in attachments
Prepaid Product
Postpaid Product
Value added
services
Vinaphone 1 5 17
Mobifone 1 4 10
Viettel 5 3 18
S-Fone 9 6 11
PRODUCTS & SERVICES
Source: MIC Annual report (Jul 2007)
VN MOBILE AWARDS 2007 Most Favorite Supplier: Mobifone Best Customer Service: Mobifone Best Mobile Communications Brand: Viettel Best Loyalty: Viettel Most Favorite Service Using Mobile Technology: EVN
Telecom
VNPT (MobiFone & Vinaphone) SWOT Analysis
STRENGTHS• Country’s leading
telecoms operator with presence in fixed-line, mobile and internet sectors
• Dominant player in the fixed-line sector and also serves 53% of mobile subscribers
WEAKNESSES• Services in rural areas
is poor or non-existent• Lack of competition in
fixed-line sector has contributed to limited array of services on offer
• New mobile price structure under pressure from competitors
OPPORTUNITIES• 3G services, once
Vinaphone and MobiFone win licences, will provide substantial source of value-added mobile revenues
• Deployment of broadband and fixed-wireless networks in short and medium term
• Expansion of Gphone fixed wireless service will help presence in rural areas
THREATS• Viettel expected to
extend lead over mobile market
• Low-cost mobile services from competitors could result in migration away from fixed services
• Timescale for restructuring plan currently uncertain and could be delayed
VIETTEL SWOT Analysis
STRENGTHS• Licence to offer
fixed-wireless, mobile and value-added services
• Low tariff structure
• Nationwide coverage
• Market leader
WEAKNESSES• Network
currently has limited capacity
• No distribution service outside urban areas
• No international partner
OPPORTUNITIES• Mobile market
expected to increase to above 56 mils by the end of 2008
• Nationwide coverage should guarantee substantial market share in medium term
• Won license to test WiMAX mobile broadband service
THREATS• Connection
difficulties could promt potential subscribers to opt for alternative networks
• Influx of new mobile entrants likely to lead to pricing war
S-FONE SWOT Analysis
STRENGTHS• Backed by leading
Korean players SK Telecom and LG Electronics
• Licence to offer fixed-wireless, mobile and value-added services
• Ended 2007 with 3.4 mils mobile subscribers and 9.5% share of the market
WEAKNESSES• SK/LG not
permitted to own equity in entity
• Coverage currently limited to 13 provinces and cities
• Pricing structure already undercut by Viettel
OPPORTUNITIES• Continued growth of
mobile sector offers opportunity for expansion
• Helped by its nationwide coverage, there is the potential for considerably more mobile growth, especially from next generation services
THREATS• Falling further
behind market leader Viettel and VNPT subsidiaries (Vinaphone & MobiFone)
• Influx of new mobile entrants likely to lead to pricing war
Thanks!
By NADIA PHAMOctober 2008