Mobile VAS market in Vietnam

Presented by: GaCon

Contents

1. About me

2. MVAS market in Vietnam

3. Opportunities and Threats

4. Market trends

5. Some Suggestions

6. Q&A

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

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

MVAS Market in Vietnam

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

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)

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)

3G penetration

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

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)

Number of mobile handsets

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)

(source: Thegioididong)

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

Mobile VAS market size (CPs only)

Current Mobile VAS market size: 4,500 Billions(source: seft survey)

SMS Service category• Lottery (result, prediction)

• Multi Media (ring tone, wallpaper, theme,…)

• Football (info, result, tip)

• SMS Feeding (online services)

• GPRS/3G setting

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,…)

Revenue Contribution by SMS services

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

Marketing channels

• Newspaper

• TV

• Online

• WAP Portal

• In-App

• App Portal/Store

• Direct marketing: Spam SMS

• Others: Leaflet, poster,…

Business Models

• Public media

• Spamming

• Supportive

• Content producer

• Content Hub

• Money laundering

Opportunities and Threats

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

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

Market trends

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

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

Some suggestions

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

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

Nguyen Minh Quang

quangcb@gmail.com

0904862366

Kid_quai

/gacon

@Yukidaro

/nguyenminhquang

Thank you for listening!

QnA