The document provides a review of Vietnam's mobile VAS market in 2012. It discusses the number of telcos and mobile subscribers, the size and growth of the mobile VAS market, revenue models, opportunities and threats. Key trends include the growth of mobile internet, apps and games, and a shift away from SMS services towards mobile web and cloud-based services. The presentation recommends that companies focus on trending services, cooperate with telcos and other companies, and develop their own marketing channels.

1. Vietnam Mobile VAS Market Review
Presented by: GaCon
Hanoi 05/2012

2. Contents
1. About me
2. Mobile VAS market review
3. Market trends
4. What should we do?
5. Q&A

3. About me
• Nguyen Minh Quang
Founder/CEO
Vietnam Digital Entertainment Company
• Schools:
- Ha Noi Foreign Trade University (BBA)
- Ha Noi School of Business (MBA)
- Founder Institute
• Companies:
- FPT Telecom
- Vietnam2You
- Galaxy Mobi
I’m entrepreneur now!

4. Vietnam Digital Entertainment
Company - VDEC
• Founded in 2011
• Number of staff: 10
• We focus on mobile – online product development
• Key Services: SMS, WAP, Web
• Website: http://www.vdec.vn
Online – Mobile Reverse Online Sport TV Social Ridesharing Platform
Auction Game Platform Broadcasting
http://daugia321.vn

5. M-VAS Market Review
Yes, I know, same topic but …YOUR CHOICE?

6. Number of Telcos: 7-> 6
Telcos Number
Viettel 098, 097, 0165, 0166, 0167, 0168, 0169 ,0164 + 096
Mobifone 090, 093, 0121, 0122, 0126, 0128,0120
Vinaphone 091, 094, 0123, 0125, 0127 ,0129,0124
Vietnamobile 092 ,0188,0186
Beeline 0199 ,099
Sfone 095,0155
• 12./2011: Viettel officially acquired EVN Telecom and became the
biggest Telco in Vietnam
• Mobifone and Vinaphone tend to merge in the near future
• 03/2012 Sfone has been accepted to switch from CDMA to HSPA
• 4/2012 VimpelCom jumped out from Gtel Mobile (Gtel take over)

7. Number of mobile subscribers
• Number of mobile subscribers (11/2011 - GOV): 116,2 Millions compare
to 150 Millions by the end of 2010) -> reduce the number of virtual subs
• Actual live (within 30 days): 60% ( over 70 Millions) -> same number of
2010, different in meaning (live rate: 65% compare to 45% of 2010)
• Number of 3G subcribers by the end of 2011 is 12,8 Millions
• 3G penetration: 15% by the end of 2011
(source: mic.gov.vn)

8. Actual Live Mobile subscribers by Telcos
Telcos Subscriber (estimated)
Viettel 30 Millions
Mobifone 20 Millions
Vinaphone 18 Millions
Vietnamobile 5 Millions
Beeline >1 Millions
Sfone < 1 Millions
EVN Telecom (CDMA) Dead
(source: seft survey)
A lot of “Chém” statistic

9. Number of mobile users:
Still BIG,
• Total number of mobile users: about 45 Millions right?
• ~ 50% of population (Pop: 90 Millions)
• By the end of 2012: ~ 50 Millions (forecast)
(source: several different sources)

10. Number of mobile handsets
Source: Inmobi , the ad-network company accounts for 2.2 billions monthly impressions in Vietnam
Number of mobile handsets in use by the end of 2011: 90 Millions
(source: http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use)

11. Number of CPs (Content Providers)
• Officially: 289 (99x,6xxx,7xxx,8xxx,9xxx,...)
• Sub CPs: 500? (increased a lot!)
• Top CPs:
- VMG
- BlueSea
- VTC
- VCC
- INCOM
Independence Mobile - Elcom
application stores are - 8x10
now available - 5x55
- 8x62
• New big boys:
- MV Digital
- Mecorp
- TeaMobi

12. Mobile VAS market size (SMS+Telco VAS)
Total Mobile VAS market size:
- 2011: 11,670 Billions
- Growth rate: 35%
- 2012 (forecast): 15,000 Billiions
(source: seft survey)

13. Revenue Contribution by SMS services
(Application & wapsite provide content still use SMS as
payment or delivery content method)

14. Commercial Terms
• SMS services (MO charging)
• By the end of 2011:
- Mobifone and Vinaphone have changed their revenue sharing
ratio with CPs
- Viettel changed the MT cost policy (600VND/MT over quota)
- Sfone shuted down all connection with CPs
• Early of 2012: Mobifone and Vinaphone have also changed MT
cost policy (350VND/MT over quota)

15. Commercial Terms
• Wap charging:
• SMS sub charging (MT charging): Telco 55% - CP 45%
• Ring back tone:
- Domestic music: Tecos get 70-75%, CPs get maximum 30%
- Foreign Music: Telcos get 50%
- 50% of CP receipt will pay for liscensing (singers, authors)
• Mobile marketing:
- In 2011, Viettel has opened connection for CPs to sell brandname SMS
- Mobifone and Vinaphone are on process

16. Marketing channels
• Newspaper
• TV
• Online
• WAP Portal
• In-Application ads/delivery
• App Portal/Store
• Direct marketing: Spam SMS
• Others: Leaflet, poster,…
=> SMS spam: Still make profit but also troubles (Telco rules)
=> Public medias: Basic SMS services are no longer welcomed
=> In-App/Wap/Store: Increasing influences

17. Business Models
 Public media: Gameshow, Interactive and premium contents
 Spamming: Who is your father?
 Supportive: Using as billing method or value delivery channel
 Content producer: Focus on game and application development
 Content hub: Do it carefully!
 Money laundering: collapsed due to telco’s policies

18. Opportunities and Threats

19. Opportunities
• Huge market with nearly 12,000 billions
(VND) in value and 35% annual growth rate
• 12 millions 3G users cummulative
• 4,5 millions touch phones and tablets
• 19 millions monthly mobile internet users
• 6 billions monthly ads impressions inventory
with over 120% annual growth rate
• Better 3G speed with flat fee packages ready

20. Opportunities
• Wide uses of prepaid cards, ewallet as
alternative payment besides SMS
• Mobile internet and smartphone bring to CPs
the chance to by-pass telcos
• Telcos are willing to cooperate with CPs to
bring quality services to their mobile users
• New wave of investment in tech start-ups
(include mobile start-up): VMG, TeaMobi,
Appota,...
• International market

21. Threats
• Inflation, interest rate, ecconomic recession
• CPs businesses are still depending deeply on
Telcos in next few years. They will squeeze you!
Forget about bargaining with them!
• Telcos are jumping into this sector under VAS
Centers or CPs in-house
• Impact of globalization: Ad-market, Online –
Mobile Game and Application can be dominated
by foreign players
• Labor issues: CPs are loosing their key persons
(they tend to self startup or move to work for
Telcos or simply chose other better job)

22. Market trends

23. Market trends
• SMS services = Lottery + Money feeding
• Mobile VAS go to clound, people can access
via SMS – Web/MobileWeb – Application –
Internet TV,...
• New era of mobile ad-network and
professional content distributors
• Brandname SMS marketing using direct telco
connection
• Mobile Web and App/Game will grow
significantly in both number and revenue
• Wider use of HTML5

24. Market trends (cont.)
• Increase cooperation between CP-CP, CP –
Handset maker and CP-Telco through
content store, pre-app and mobile solution
• Telcos are continue to lose their control on
both basic/vas services
• Interactive between 3 screens: TV – Desktop
– Mobile
• Mobile TV, Payment and Commerce can
boom in the near future
• New kind of content agency (do distribution
content only and get rev-share)

25. What should we do?

26. What should we do?
• For CPs:
- Re-innovate your business model
- Focus on trending services and actual needs
- Increase co-orperation with Telcos and other CPs
- Create your own sale/marketing channel (Socbay
iMedia)
• For mobile start-ups:
- Do things differently is better than do different things
- Focus, focus, and focus!
- How to ride the wave? => Do one thing best!

27. Some suggestions (cont.)
• For developer:
- Listen to your inner calling
- Practice is the key
- Team up and ready to fly
- Learn business
- Don’t make non-sense production
- Don’t base on idea and think it’s cool
- Don’t lose focus
- Find more sale/distribution channel (Apple & Google
are good but can you make something like
Instagram or Draw Something?

28. Thank you for listening!
Nguyen Minh Quang
quangnm@vdec.vn
0904862366
quangvdec
/gacon
“Thank my classmate for update
information and help in research” @Yukidaro
/nguyenminhquang

29. Q&A
If YOU need more details
information please email me,
that’s better!

30. Last but not least
• This presentation is just my personal sharing, not a
guideline or any other serious document
• Those numbers are collected from many different
sources => you can choose to believe or not, but don’t
ask me where or by whom I got them
• Everything is not important, the important is that you do
believe in what you are doing and loving it
• Visit my blog at http://yukidaro.wordpress.com if you
want to read some more articles about VAS market