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Vietnam Mobile VAS Market Review Presented by: GaCon Hanoi 05/2012
Contents1. About me2. Mobile VAS market review3. Market trends4. What should we do?5. Q&A
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 MobiI’m entrepreneur now!
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.vnOnline – Mobile Reverse Online Sport TV Social Ridesharing PlatformAuction Game Platform Broadcastinghttp://daugia321.vn
M-VAS Market ReviewYes, I know, same topic but …YOUR CHOICE?
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)
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)
Actual Live Mobile subscribers by Telcos Telcos Subscriber (estimated)Viettel 30 MillionsMobifone 20 MillionsVinaphone 18 MillionsVietnamobile 5 MillionsBeeline >1 MillionsSfone < 1 MillionsEVN Telecom (CDMA) Dead(source: seft survey) A lot of “Chém” statistic
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)
Number of mobile handsets Source: Inmobi , the ad-network company accounts for 2.2 billions monthly impressions in VietnamNumber 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)
Number of CPs (Content Providers) • Officially: 289 (99x,6xxx,7xxx,8xxx,9xxx,...) • Sub CPs: 500? (increased a lot!) • Top CPs: - VMG - BlueSea - VTC - VCC - INCOMIndependence Mobile - Elcomapplication stores are - 8x10now available - 5x55 - 8x62 • New big boys: - MV Digital - Mecorp - TeaMobi
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)
Revenue Contribution by SMS services (Application & wapsite provide content still use SMS as payment or delivery content method)
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)
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
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
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
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
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
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)
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
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)
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!
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?
Thank you for listening! Nguyen Minh Quang firstname.lastname@example.org 0904862366 quangvdec /gacon“Thank my classmate for updateinformation and help in research” @Yukidaro /nguyenminhquang
Q&AIf YOU need more detailsinformation please email me,that’s better!
Last but not least• This presentation is just my personal sharing, not aguideline or any other serious document• Those numbers are collected from many differentsources => you can choose to believe or not, but don’task me where or by whom I got them• Everything is not important, the important is that you dobelieve in what you are doing and loving it• Visit my blog at http://yukidaro.wordpress.com if youwant to read some more articles about VAS market