Press Release For Vietnam Telecommunications Services Market Report Up To 2010 And Beyond
PRESS RELEASENNMT ADVISORNEW PUBLICATION“ VIETNAM TELECOMMUNICATIONS SERVICES MARKET REPORT UP TO 2010 AND BEYOND“Ho Chi Minh City, April 2011 – NNMT ADVISOR is pleased to announce that a new title“VIETNAM TELECOMMUNICATIONS SERVICES MARKET REPORT UP TO 2010 AND BEYOND”has been published.The report is a comprehensive reference of the Vietnamese telecommunications sectoraddressing every single aspect that might concern an industry stakeholder including, but notlimited to the followings: Overall social-economic development of Vietnam, an emerging market in Southeast Asia; Relevant regulatory and legal context which provide basic understandings on how the telecommunications is regulated in terms of regulatory bodies, tariffs, interconnection, shared infrastructure, scarce resources (numbering plan and radio spectrum), and use of universal services funds, licensing issues, and specific telecommunications laws; Comprehensive description and deep analysis on investment framework in the Vietnamese telecommunications industry which addresses various degrees of entry strategy (BCC, JVC, and equity participation) for an investor, including an overseas one, to penetrate in the market with conceptual consideration in M&A and prospects for privatization and liberalization of the telecommunications market; A thorough survey on every market component from wireless to wireline including both qualitative and quantitative factors such as market share, subscribers, revenues, and other key industry figures in the past several years and our forecasts up to the next three years; Profiles of major industry players VNPT, VTI, VDC, Vinaphone, MobiFone, Viettel, FPT Telecom, Hanoi Telecom, EVN Telecom, Saigon Postel, VTC, GTel, CMC Telecom, and Indochina Telecom.The report is very much helpful for policy makers and regulators, potential investors andbusiness partners, suppliers of network and subscribers’ equipments, content and mediaproviders, network providers, financial institutions, academic researchers, students, andbusinesses who wish to source their ICT solutions. Join people who would benefit the mostfrom the report C-level executives, strategy planners, financial planners, business developmentexecutives, and sales and marketing staffs.The report helps prevent readers from making costly mistakes thanks to comprehensiveanalysis with supporting evidence. The report provides thoughtful answers to the following
questions: 1) what the most comprehensive picture about the Vietnamese telecommunicationsis, 2) whether it is worth of investing and how an investment should be made in what type ofan investment environment, and 3) which and how industry players are doing in themarketplace.Subscriptions have been placed from esteemed organization operating in the field. A partial listof our clientele includes PCCW Global, NTT Com Asia, Epsilon, and Center of the InternationalCooperation for Computerization (Japan).To take advantage of generous discounts or have further enquiries, please place your requestto NNMT ADVISOR at NNMT.ADVISOR@GMAIL.COM or NGUYENNGOCBIEN@YAHOO.COM.About NNMT ADVISORNNMT ADVISOR is a group of independent professionals and researchers who have passion to contribute to thegrowth of Vietnam. Our team members are well-trained and experienced business and financial professionals withmore than 38 years combined experience in management level. Our philosophy is we deliver what we havecommitted in adding values to our clients’ achievements. Our team is led by the founder and lead researcher BienNgoc Nguyen. As a subject matter expert in ICT/TMT, Bien has been a frequent speaker and panelist with varioustopics in business strategy, marketing management, financing new ventures, Vietnam investment landscape, andtelecommunications industry at several international conferences and industry forums such as. Next GenerationWholesale Telecom (Singapore, May 2010), Carrier World Asia (Hong Kong, March 2010), TMT Finance andInvestment Asia (Singapore, November 2009), Equinix Asia Peering Forum (Bangkok, September 2009), and AsianInfo-Communication Council 34th Conference (Thailand, 2006).Mr. Nguyen received an MBA with honors in two majors: International Business and Telecom Management fromGolden Gate University, San Francisco, California, US. He holds a Bachelor of Engineering in Telecommunications,a Bachelor of Arts in International Studies and a professional degree in Civil Aviation from prestigious Vietnameseinstitutions. In addition, he was selected to participate in executive training programs such as Transition Strategiesfor Telecom Operators organized by Swedish International Development Agency (SIDA) in Sweden in 2007 andManagement Training Program organized by the US Telecommunications Training Institute in the US in 2008. Bienwas a former winner of scholarship programs awarded by the New York-based Society of Satellite ProfessionalsInternational (SSPI) in 2004 and by Motorola Vietnam in association with the University of Technology in Ho ChiMinh City in 2000. Bien is married to a Vietnamese lady and they have one cute son.
TABLE OF CONTENTS1 EXECUTIVE SUMMARY 82 OBJECTIVES OF THE STUDY 93 RESEARCH METHODLOGY 94 RATIONALE FOR SELECTING VIETNAM 95 VIETNAM AT A GLANCE 115.1 BASIC STATISTICS 126 REGULATORY AND LEGAL CONTEXT 146.1 TELECOMMUNICATIONS REGULATION IN VIETNAM 146.1.1 BASIS 146.1.2 A HISTORICAL DEVELOPMENT OF REGULATION AND MARKET LIBERALIZATION 146.1.3 KEY GOVERNMENT AGENCIES 156.1.4 TARIFFS176.1.5 INTERCONNECTION AND SHARED INFRASTRUCTURE 186.1.6 SCARCE RESOURCES - NUMBERING PLANS AND SPECTRUM 196.1.7 UNIVERSAL TELECOMMUNICATIONS SERVICES FUND 206.2 TELECOMMUNICATIONS LICENSING FRAMEWORK 206.2.1 TELECOMMUNICATIONS LICENSES 206.2.2 BASIC PRINCIPLES FOR TELECOMMUNICATIONS LICENSING 216.2.3 CRITERIA FOR BEING LICENSED 21
6.2.4 FEES AGAINST COMMERCIAL RIGHTS GRANTED UNDER THE LICENSES 226.3 THE NEW TELECOMMUNICATIONS LAWS AND THE WAY FORWARD 227 INVESTMENT FRAMEWORK IN VIETNAM TELECOMMUNICATIONS 237.1 LEGAL BASIS 237.2 FORMS OF FOREIGN INVESTMENT 247.3 BUSINESS COOPERATION CONTRACT (BCC) 257.4 JOIN VENTURE COMPANY (JVC) 287.5 EQUITY PARTICIPATION 307.6 MERGER AND ACQUISITIONS (M&A) 307.7 INTERNATIONAL MOTIVATION AND INFLUENCE - PROSPECTS FOR PRIVATIZATION ANDLIBERALISATION OF THE TELECOM MARKET 318 TELECOMMUNICATIONS SERVICES MARKET IN VIETNAM 328.1 AN OVERVIEW 328.1.1 CHALLENGES 338.1.2 OPPORTUNITIES 348.2 MOBILE COMMUNICATIONS 358.2.1 3G 368.2.2 4G 378.2.3 MOBILE TARIFFS 388.2.4 MOBILE CONTENTS 388.2.5 MVNO AND MVNE 398.2.6 CONCLUSIONS 408.3 FIXED LINE TELEPHONY 448.4 VOIP SERVICES 468.5 INTERNET AND CAPACITY SERVICES 488.5.1 SATELLITE COMMUNICATIONS 49
TABLE OF FIGURESFigure 1: USD VS. VND EXCHANGE 10Figure 2: VIETNAMS GDP REAL GROWTH 2000-2008 12Figure 3: FOREIGN DIRECT INVESTMENT IN VIETNAM 13Figure 4: VIETNAM & NEIGHBORHOOD COUNTRIES - KEY MACROECONOMIC FIGURES 14Figure 5: GOVERNMENTS DEBT IN 2009 15Figure 6: HISTORICAL DEVELOPMENT OF REGULATION AND MARKET LIBERALIZATION 15Figure 7: FIXED-LINES PREFIXES ASSIGNED TO OPERATORS 21Figure 8: PREFIXES ASSIGNED FOR MOBILE OPERATORS 21Figure 9: MAJOR DIFFERENCES BETWEEN FORMS OF FOREIGN INVESTMENT VEHICLES 25Figure 10: TELECOMMUNICATIONS SERVICES REVENUES 34Figure 11: TELECOMMUNICATIONS COMPANIES 34Figure 12: VIETNAM MOBILE DEVELOPMENT HISTORY 42Figure 13: MOBILE SUBCRIBERS IN VIETNAM 43Figure 14: MARKET SHARE - MOBILE SECTOR - MID 2008 43Figure 15: MARKET SHARES - MOBILE SECTOR - MID 2009 44Figure 16: MARKET SHARES - MOBILE SECTOR - MID 2010 44Figure 17: VIETNAM MOBILE ARPU ($) 45Figure 18: BANDS BEING USED BY MOBILE OPERATORS 45Figure 19: IMT-2000 SPECTRUM ASSIGNMENT FOR 3G NETWORKS IN VIETNAM 45Figure 20: FINANCIAL CAPABILITY OF VIETNAMESE OPERATORS IN THE 3G BEAUTY CONTEST 46Figure 21: BANDS ON PLAN FOR FUTURE USE (4G) 46
Figure 22: FIXED LINE MARKET SHARE 47Figure 23: FIXED LINE SUBCRIBERS IN VIETNAM 48Figure 24: BASIC STATISTICS OF VIETNAM VOIP TERMINATION SERVICES 49Figure 25: LIST OF MAJOR VOIP TERMINATION SERVICE PROVIDERS IN VIETNAM 49Figure 26: PREFIXES ASSIGNED TO VOIP SERVICES PROVIDERS 50Figure 27: STATISTICS ON INTERNET DEVELOPMENT IN VIETNAM UP TO MAY 2010 52Figure 28: INTERNET USERS 52Figure 29: INTERNET USERS IN PERCENTAGE OF POPULATION 53Figure 30: BROADBAND USERS 53Figure 31: BROADBAND USERS TELEDENSITY IN VARIOUS LOCATIONS 53Figure 32: DOMAIN REGISTRATION 54Figure 33: INTERNET PENETRATION IN MAJOR CITIES 54Figure 34: ISP MARKET SHARE BY END OF 2009 55Figure 35: VIETNAM CAPACITY BY END OF MAY 2010 55Figure 36: A SURVEY ON THE USE OF INTERNET AT OFFICES IN VIETNAM 59Figure 37: SURVEY ON ICT USAGE IN GOVERNMENT AGENCIES IN VIETNAM 59Figure 38: VNPT REVENUES 62Figure 39: VIETTEL REVENUES 66Figure 40: EVN TELECOM REVENUES 67Figure 41: SPT REVENUES 69