Mobile VAS market in Vietnam, some statistics, trends and suggestion for investors, start-up and developer

1. Mobile VAS market in Vietnam
Presented by: GaCon

2. Contents
1. About me
2. MVAS market in Vietnam
3. Opportunities and Threats
4. Market trends
5. Some Suggestions
6. Q&A

3. My Profile
• Full name: Nguyen Minh Quang
• Nickname: GaCon, Yukidaro
• Job title: Business Development Manager
• Company: Galaxy Mobile JSC
• My Schools:
- Ha Noi Foreign Trade University (BBA)
- Ha Noi School of Business (MBA)
• My jobs:
- Business Development Manager
- Online – Mobile Product Manager
- SMS Content Developer

4. My company
• Member of Galaxy Group
• Founded in 2007
• MVAS content provider for Viettel, Mobifone,
Vinaphone
• Top 10 in MVAS market
• Key Services: SMS, WAP, Web, Music

5. MVAS Market in Vietnam

6. Number of Telcos: 7
Telcos Number
Viettel 098, 097, 0165, 0166, 0167, 0168, 0169 + 0164
Mobifone 090, 093, 0121, 0122, 0126, 0128 + 0120
Vinaphone 091, 094, 0123, 0125, 0127 ,0129 + 0124
Sfone (CDMA) 095 + 0155
Vietnamobile 092 + 0188
Beeline 0199 + 099
EVN Telecom (CDMA) 096

7. Number of mobile subscribers
• Total number issued: 170 Millions
• Number of mobile subscribers (04/2011 - GSO): 157 Millions
• Actual live (within 30 days): 45% (60-70 Millions)
(source: gso.gov.vn)

8. Actual Live Mobile subscribers by Telcos
Telcos Subscriber (estimated)
Viettel 20 - 25 Millions
Mobifone 18 - 20 Millions
Vinaphone 15 -18 Millions
Vietnamobile 2 - 4 Millions
Sfone (CDMA) 2 Millions
Beeline >1 Millions
EVN Telecom (CDMA) < 1Millions
(source: seft survey)

9. 3G penetration
Actual live 3G penetration: 5 – 8% according to recent surveys

10. Number of mobile users:
• Total number of mobile users: about 30-35 Millions
• ~ 40% of population (90 Millions)
• 2012: 50 Millions (forecast)
(source: several different sources)

11. Number of mobile handsets
(source: Thegioididong)
Number of mobile handsets in use: 34,5 Millions (10/2010)
(source: http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use)

12. Number of CPs (Content Providers)
• Officially: ~250
• Unofficially: ?
• Most of them are SMEs
• Top CPs:
- VMG
- BlueSea
- VTC
- VASC
- Galaxy
- VCC
- VDC
- ABC
- iNET
- GapIT
- Tinh Van

13. Mobile VAS market size (CPs only)
Current Mobile VAS market size: 4,500 Billions
(source: seft survey)

14. SMS Service category
• Lottery (result, prediction)
• Multi Media (ring tone, wallpaper, theme,…)
• Football (info, result, tip)
• SMS Feeding (online services)
• GPRS/3G setting

15. SMS Service category (cont.)
• Text Info (SMS banking, sex-health, funny, stock, horoscope, tips,…)
• Networking (chat, dating, voting,…)
• Text Game (lucky draw, quiz, reverse auction,…)
• Others (donation, error,…)

16. Revenue Contribution by SMS services

17. Commercial Terms
• SMS services (MO charging)
• SMS sub charging (MT charging): Telco 55% - CP 45%
• WAP charging: same ratio with SMS MO charging
• Ring back tone: Tecos get 70%, CPs get maximum 30% (50% of
this will pay for singers and authors)
• Mobile marketing: Telcos treat CPs = Agencies

18. Marketing channels
• Newspaper
• TV
• Online
• WAP Portal
• In-App
• App Portal/Store
• Direct marketing: Spam SMS
• Others: Leaflet, poster,…

19. Business Models
• Public media
• Spamming
• Supportive
• Content producer
• Content Hub
• Money laundering

20. Opportunities and Threats

21. Opportunities
• Fast growing Economic and Telecom sector
• Huge mobile user base (young and active)
• More “open” to: Mobile game, social network,
mobile marketing,...
• 3G is opening new era of Mobile Internet
• Telcos are willing to cooperate with CPs
• Convenient Payment: Online – Mobile

22. Threats
• Impact of globalization: High
• Inflation, interest rate
• CPs businesses are depending on Telcos
(unequal treating and uncertain policy)
• Highly competitive market
• Telcos are jumping into this sector under VAS
Centers
• Regulation violation and problem of TRUST
• Rapid change in technology and user behaviors
• Labor: Limited (often jump between CPs), few
talents, medium-high labor cost

23. Market trends

24. Market trends
• SMS services are still main source of
revenue within next 3 years
• Next 3 years will be the age of Mobile Web
and Mobile Application
• Mobile contents: Go Online, Go social and
Personalize
• Interactive between 3 screens: TV – Desktop
- Mobile
• Huge opportunities on Mobile marketing and
B2B services

25. Market trends (cont.)
• Socialize in mobile content supplying
• Reduce number of CPs, increase MnA and
number of sub-CPs
• Telcos will lose their control on VAS when
smart phones and mobile internet penetration
increase
• Bypass telcos when apply online payment

26. Some suggestions

27. Some suggestions
• How to start?
- For start-ups
- For developers
• Where to focus?
- SMS: Actual needs in large scale, interactive
- B2B market and mobile marketing
- Mobile internet contents (Web and Application)
- Online – Mobile communities

28. Some suggestions (cont.)
• What to remember?
- Strategic building your system
- Listen to your users
- Relationship is important
- Keep up your innovation
- Try to create a better service. But don’t you take
too much time to develop a perfect one
- Let your users do your marketing work

29. Thank you for listening!
Nguyen Minh Quang
quangcb@gmail.com
0904862366
Kid_quai
/gacon
@Yukidaro
/nguyenminhquang

30. QnA