2008_Pyramid research_VN communication market

2008_Pyramid research_VN communication market -...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
This report forms part of Pyramid Research’s Asia Pacific Country Intelligence Report Series June 2008 Edition Communications Markets in Vietnam
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
© 2008 Pyramid Research Section Page Executive summary 3 Market and competitor overview 4 Vietnam in a regional context 5 Economic, demographic and political context 6 Regulatory environment 7 Demand profile 9 Service evolution 10 Competitive landscape 11 Vietnam’s major market players 12 Segment analysis 13 Mobile services 14 Fixed services 18 Identifying opportunities 22 Table of contents ID# 192
Background image of page 2
© 2008 Pyramid Research 3 Executive summary Pyramid Research expects Vietnam to be one of Asia Pacific’s fastest growing markets, with total telecommunications service revenue increasing at a CAGR of 12.9% during the 2007-2012 forecast period, against the regional average of 5.0%. As such, Vietnam will become equal in size to its wealthier, but smaller, neighbor Malaysia, with an expected revenue of US$6.1bn by 2012. The main growth engine will be the mobile sector, both voice and data, while the fixed sector enjoys growth in broadband services. Demand for faster Internet connection will keep the market growing as dial-up subscribers switch to DSL services. Despite low incomes, Vietnam’s huge youth segment, (65% of its 86m population is under the age of 30) who are more tech-savvy than their older generation, will increase demand for connectivity. In the fixed space, challengers Viettel and FPT are causing headaches for incumbent VNPT, which has been losing significant market share in the broadband space. Increasing mobile penetration will keep revenues climbing, despite falls in ARPS. We expect mobile voice and data revenue to increase at a CAGR of 10.3% and 29.8%, respectively. As such, mobile operators will generate $4.7bn in service revenue in 2012, almost double 2007 levels of $2.5bn. Viettel, which became the leader in 2006 after just three years of operation, will continue to maintain its lead over other operators. Despite being a latecomer, Viettel expanded coverage in areas that were underserved by existing operators, which helped the former gain substantial market share. The main risks to operators are falling ARPS levels, which will have an impact on margins in the long run. The upcoming privatization of MobiFone, VinaPhone and Viettel is attracting interest from regional players such as STT, Telekom Malaysia, NTT and Chunghwa Telecom.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Market and competitor overview
Background image of page 4
© 2008 Pyramid Research GDP per capita Total service revenue CAGR 2007-2012 Japan India Vietnam Taiwan China Hong Kong THE SIZE OF TELECOM SERVICES MARKETS, 2007 (US$ terms) With a population of 86m and generating service revenue worth $3.3bn in 2007, Vietnam is one of the smaller telecom markets in Asia-Pacific. However, with mobile and fixed penetration rates of just 42% and 13%, respectively, in 2007, Vietnam offers great opportunities for vendors, regional operators, as well as investors as
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 25

2008_Pyramid research_VN communication market -...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online