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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

Making 3G Work in Vietnam

Presented by:

Marc Daniel Einstein

Senior Industry Analyst

October 5th, 2008

Hanoi, Vietnam

Today s agenda
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

Vietnam s telecommunications market in context

“The Digital Divide”

Vietnam’s Telecommunications Market in Context

Vietnam’s Mobile Market is at a medium level of maturity for an emerging market.

Vietnam mobile market forecast
Vietnam Mobile Market Forecast

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.

Vietnam mobile arpu evolution
Vietnam Mobile ARPU Evolution

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

Asia pacific arpu vs ebitda margin comparison
Asia Pacific ARPU vs. EBITDA Margin Comparison

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

But low arpus are starting to take a toll
But Low ARPUs are Starting to Take a Toll

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.








3g deployments asia pacific


  • High Handset Prices

  • Lack of Subscriber Adoption

  • Large Markets Still Untapped

  • QoS/Indoor Coverage

3G Deployments –Asia Pacific

3g subscriber update
3G Subscriber Update

Japan & South Korea comprised 80% of the APAC 3G Subscriber Base in 2007

‘000 subscribers

Making 3g work in vietnam

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.



Data Rates

42/11Mbps DL/UL

144/57Mbps DL/UL








5MHz Blocks


Making 3g work in vietnam

LTE Time to Market

Lab Testing










Field Testing



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.

Apac household penetrations rates

The “Digital Divide”

APAC Household Penetrations Rates

Low-bandwidth, high ARPU wireline broadband markets are ripe for competition from 4G, even in developed markets.

Pldt wireless broadband strategy
PLDT – Wireless Broadband Strategy

  • The PLDT has been able to diversify its revenue streams in the broadband market by deploying wireless solutions for last-mile connectivity:

  • GPRS/EDGE, HSPA, WiFi and eventually WiMax are all used to compensate for low fixed-line penetration (~4%)

  • In 2007 wireless broadband subscribers overtook wired subscribers (only case in the world)

  • Product bundling: New subscribers can purchase a laptop with a wireless data card and service plan from the operator

Exhibit: PLDT’s Broadband Service Portfolio

Exhibit: PLDT’s Broadband Subscriber Uptake by Service, 2005-2007

Clearwire wireline to wireless churn
Clearwire – Wireline to Wireless Churn

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.

Mobile advertising blyk mobile
Mobile Advertising – Blyk Mobile

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.

Advertisements +

SIM, 217 texts & 43 minutes

FREE every month

Mobile operator

16 -24 years old

What does 3g mean for vietnam
What does 3G Mean for Vietnam?

  • Vietnam’s mobile market has rapidly caught up with other emerging markets in Asia but the broadband market still lags behind.

  • Emerging market wireless operators are facing pressure on margins which will entice them to aggressively enter the broadband market.

  • 3G technology has reached a point where it can adequately compete with wireline service in Vietnam.

  • Service offerings should first focus on ACCESS then VAS.

  • A higher broadband penetration is crucial to Vietnam’s competitiveness in the global economy and so it is ultimately in the government’s best interest to promote wireless broadband usage.

Thank you marc daniel einstein senior industry analyst email marc einstein@frost com tel 6569800983

Thank you!Marc Daniel Einstein, Senior Industry AnalystEmail: marc.einstein@frost.comTel: +6569800983