Making 3G Work in Vietnam. Presented by: Marc Daniel Einstein Senior Industry Analyst October 5th, 2008 Hanoi, Vietnam. Today’s Agenda. Section 1: Vietnamese Mobile Market Overview Section 2: 3G Market Overview Section 3: 3G Services & Applications Section 4: Making 3G Work in Vietnam.
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Making 3G Work in Vietnam
Marc Daniel Einstein
Senior Industry Analyst
October 5th, 2008
Section 1: Vietnamese Mobile Market Overview
“The Digital Divide”
Vietnam’s Mobile Market is at a medium level of maturity for an emerging market.
Vietnam will continue to be one of the fastest growing mobile markets in terms of net
subscriber additions. Vietnam will have 4% of all AP subs by 2013.
As most of Vietnam’s future mobile market growth will come from the rural and youth
Segments, we believe that the blended market ARPU will breach the US$3 level by 2013
We predict that the 2013 ARPU will only be 25% of its 2005 value
This decline, however, does not necessarily correspond to low profitability, especially for
emerging market incumbent operators
Emerging Market Incumbents
Developed Market Operators
Emerging Market Challengers
While some emerging market operators in Asia are maintaining of slightly improving EBITDA
margins via wireless broadband strategies and network outsourcing, many are experiencing
large declines in ARPUs which are putting pressure on margins.
Section 2: 3G Overview
Japan & South Korea comprised 80% of the APAC 3G Subscriber Base in 2007
3.5G vs. 4G Technology Comparison
LTE will offer significant advantages over 3.5G in terms of data rates, latency, transmission time interval, and is more flexible with spectrum blocks.
LTE Time to Market
LTE is still in the laboratory and early field testing phases as vendors such have publicly demonstrated live LTE handovers. Going forward we expect limited deployments in 2011 with wider-scale launches by 2012.
Section 3: Making 3G Work in Vietnam
The “Digital Divide”
Low-bandwidth, high ARPU wireline broadband markets are ripe for competition from 4G, even in developed markets.
Exhibit: PLDT’s Broadband Service Portfolio
Exhibit: PLDT’s Broadband Subscriber Uptake by Service, 2005-2007
Clearwire, one of the largest WiMAX operators in the world and based in the USA reported that a surprising 59% of its wireless broadband subscriber base actually churned from a fixed-line broadband service, driven by both lower price points and the added feature of mobility.
Blyk Mobile, an MVNO in the UK, is the first operator globally to introduce a 100% ad-funded mobile service. The service allows 16-24 year olds to receive 243 text messages and 43 voice minutes to any network in the UK every month, and additional minutes cost and messages cost £0.15 and £0.15respectively. The company has picked up advertisers such as McDonalds, Microsoft and Adidas and boasts 100,000 subscribers.
SIM, 217 texts & 43 minutes
FREE every month
16 -24 years old
Section 4: Making 3G Work in Vietnam
Thank you!Marc Daniel Einstein, Senior Industry AnalystEmail: [email protected]: +6569800983