VN Mobile

Communication
s Market Report

By NADIA PHAM
October 2008
Key Points

 VN Social Demographic
 Market Overview
 VN Business Environment Industry
SWOT
 Total Market Volume Growth, 1995-
2008
 VN Mobile Market Share, 2007
 Industry Trend /Forecasts
 VN Mobile Communications
Operators
 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
 Total Market Volume Growth,
1995-2008

Source: BMI Report 2008

Notice:
* estimated figures
VN Mobile Market
Share, 2007

 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 & WiMAXtechnology are about to launch, which will be a revolution
Source: MIC Annual
report
 Industry
Trend/Forecasts

Notice:
Source: ITU & BMI
* e = estimated report
* f = forecast
* ITU : International Telecommunications Union
* BMI: Business Monitor International Ltd.
 Mobile Communications
Operators

Total
Market
Volume:
36,263,100

* MIC : Ministry of Information and Communications Source: MIC Annual report 2007
 Mobile Communications
Operators

Owners
and
Partners

* MIC : Ministry of Information and Communications Source: MIC Annual report 2007
Mobile Communications
Operators

Source: Vietnam Telecommunications Report Q3 2008 , BMI Ltd.

* Data of year 2007 updated to the end of 2007
 Coverage &
Products/Services
COVERAGE 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
Notice:
* BTS: Base Transceiver Station
* GPRS: General Package Radio Service
* Products & Services : see more details in attachments
 VNPT (MobiFone &
Vinaphone) SWOT Analysis
VIETTEL SWOT Analysis
S-FONE SWOT Analysis
Thanks!

By NADIA PHAM
October 2008