VIETNAM TELECOM MARKET & PRICE REGULATION · · 2012-05-23Vietnam Posts and Telecommunications...
Transcript of VIETNAM TELECOM MARKET & PRICE REGULATION · · 2012-05-23Vietnam Posts and Telecommunications...
Vietnam Posts and Telecommunications Group
VIETNAM TELECOM
MARKET & PRICE REGULATION
ITU Regional Seminar on Costs and Tariffs for Member Countries
of the Regional Group for Asia and Oceania (SG3RG-AO)
Bali, Indonesia, 28-30 May 2012
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• State-Owned Group
• Largest Operator in Vietnam: Annual Growth 15%
• Experienced: 60 years
• Diverse Range of Services
– Mobile Broadband
– Fixed-line Broadband (Internet, Entertainment…)
– Satellite
– Postal
• Employees 90,000
VNPT GROUP INTRODUCTION
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VNPT BUSINESS LINE
ICT
business (Telecom
and IT services) as
network carrier, operator,
service provider,
equipment vendor
VIETNAM OPERATOR
• Fixed Broadband : 09
• Mobile-2G: 07
• Mobile Broadband - 3G: 05
• MVNO: 02
• Internet Service Provider: 80
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VIETNAM MARKET GROW
Telecom service user
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
2006 2007 2008 2009 2010
Internet User
Fixed User
Mobile User
Telecom revenue
2769.3
3552.98
5144.14
6867.55
9410.79
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2006 2007 2008 2009 2010M
US
D
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VIETNAM MARKET REVENUE
Fixed Revenue
600.52 601.67570.01
290.68
211.42
0
100
200
300
400
500
600
700
2006 2007 2008 2009 2010
M U
SD
Mobile Revenue
1547.47
2306.98
3250.77
4032.5
5741.97
0
1000
2000
3000
4000
5000
6000
7000
2006 2007 2008 2009 2010
M U
SD
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VIETNAM MARKET REVENUE
Internet Revenue
107.73
162.24
248.43
356.89
390.82
0
50
100
150
200
250
300
350
400
450
2006 2007 2008 2009 2010
M U
SD
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VIETNAM MARKET- INTERNET
93%
91%
76%
73%
69%
68%
59%
46%
43%
40%
0% 20% 40% 60% 80% 100%
News
Information seeking
Music
Study
Chat
Music download
Forum
Film
blog
Internet application Percentage Internet User per
Inhabitant
3.80%7.69%
12.90%17.67%
21.05%24.40%
26.55%31.11%
0.00%5.00%
10.00%15.00%
20.00%25.00%
30.00%35.00%
2003 2004 2005 2006 2007 2008 2009 2010
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VIETNAM MARKET SHARE
Telecom revenue in 2010
Mobile
91%
Fixed
3%
Internet
6%
ADSL market share
SPT
1.22%CMC
0.25%
Viettel
10.13%
Netnam
0.31%
FPT
20.57%
VNPT
67.52%
VIETNAM MARKET SHARE
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7.43%
1.08%
0.12% 0.10%
18.32%
72.94%
Fixed market share
EVN
SPT
VTC
FPT Telecom
Viettel
VNPT
57.82%
38.31%
3.18%
0.53%
0.17%
Mobile Market share
VNPT
Viettel
Vietnammobile
SPT
Gtel
Fixed Market Share
MOBILE ARPU – HITORICAL & FORECAST
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5.52
5.00
4.49
4.11 3.85
3.60 3.51 3.41
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2009 2010 2011e 2012f 2013f 2014f 2015f 2016f
Mobile ARPU(US$)
VIETNAM MARKET SWOT
• Strengths - Highly competitive mobile sector.
- Continued positive growth in mobile
sector in 2011, with subscribers up by
5.4%.
• Fixed-line penetration and internet
user rate are high in major urban
centre
• Joining the WTO in 2008 has made
Vietnam a more appealing investment
centre.
• Weakness: • - Market’s dependency on prepaid
services exerts strong downward
pressures on ARPU levels.
• Lack of key strategic investors in the
sector’s main operators.
• Although communications are
relatively advanced in the larger cities,
many rural areas have little or no
access to telecommunications
services.
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VIETNAM MARKET SWOT
• Opportunities • Many operators in telecom sector,
some of them have not yet launched
their services.
• Broadband penetration rate remains
low => the sector has considerable
growth potential.
• Significant opportunities exist to
develop alternative broadband
technologies
• Open for foreign investors.
• Threats: • It is difficult to deploy new networks in
mountainous areas.
• ARPU is low
• Fixed line is declining
• Mobile data services grow, this could
have potentially negative impact for
the growth of fixed broadband
services.
• Slower economic growth in 2012 could
undermine wireline investment and
expansion plans.
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OPERATOR IN REGULATION
• Definition of SMP:
- An operator: more than 30% market share
- Group of 3 operators: more than 50% market share
- Group of 3 operators: more than 70% market share
- Group of 4 operators: more than 75% market share
• In-Live from 2007
• Segment:
– Fixed Services
– Mobile Services
– International Outgoing Call
– Leased Line Services
SERVICES UNDER REGULATION
- Local call service
- Mobile
- ADSL
- International lease line
- International outgoing call
ADMINISTRATION OF TELECOM TARIFF
• Government stipulates: Local Call Service
• MIC regulates by registered Model:
– Mobile Services: Voice
– ADSL Service
– Leased Line Service Model
• MIC regulates by announcing Model:
– Long Distance Call
– International Outgoing
• Operators make tariff decision
– As Government Decision
– In-frame of MIC FORM
– For others services
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OPERATOR RETAIL TARIFF
Pay as you go
– Speed Based
– Volume Based
– On-time Based
• Prepaid volume Package
• Postpaid monthly package
OPERATOR RETAIL TARIFF
• Bundle package:
– Voice, data
– Voice, VAS
– Voice, data, VAS
– Fixed, Mobile, data
• Customer Focus
– Mass Customers
– Enterprise Customers
– Valuable Customer
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INTER-CONNECTION CHARGING
• MIC regulates interconnection charges:
– Fixed to Fixed Network (long distance call)
– Fixed to Mobile and Mobile to Fixed
– Mobile to Mobile
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VIETNAM TARIFF CHALLENGES
• Inflexibility to make regulated services tariff
• Price war
• Price of non SMP out of control
• Promotion out of control
• Lack of attractive services
• Alternative services by next generation mobile
technologies LTE and WIMAX
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TARIFF SOLUTION
• Free of installation in promotion time
• Free of equipment
• Lease/deposit/ step buy of equipment
• Provide new attractive VAS services
• Promotion in first months of service offerings
• Quality of services
• Bundle with other services
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CHANGING REQUIREMENT
• Revise Definition of SMP
• Policy to Regulate on Flat Rate or Basic Package
• Supervise Operator Tariff Plan on Cost-Based
• Regulate Local Interconnection Charge
• Promotion Policy under Control
• Cost-Based Model between Operators
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