Mr. Hung Nguyen presented on the vital role of telco billing in Vietnam's growing gaming market. Telco billing accounts for 85% of payments in Vietnam due to the popularity of cash-based transactions and telco networks' unparalleled distribution reach. Common telco billing options include premium SMS, prepaid cards, and mobile wallets, each with advantages and disadvantages for payers and publishers. Emerging trends may reduce telco billing's dominance as banking services, telco-owned payment gateways, and proprietary app stores expand.

1. PRESENTED BY MR. HUNG NGUYEN
THE VITAL ROLE OF TELCO BILLING
IN VIETNAM GAMING MARKET

2. PEACESOFT GROUP & NGAN LUONG
THE MARKET AND OVERSEA PUBLISHER OPPORTUNITY
WHY TELCO BILLING PREVAILS?
TELCO BILLING OPTIONS, PROS & CONS
NEAR FUTURE TRENDS
COVERAGE

3. PEACESOFT GROUP & NGAN LUONG
• Founded in 2001 with 15 years
experience, started Internet business in
2005
• Bold media presence and achievements
as Internet technology pioneer/leader in
Vietnam
• 300+ staffs in 5 SEA locations with $250
millions USD annual run-through volume
• Investors: IDG, SoftBank, eBay and MOL
• Partners: PayPal, MobiFone, WeShop,
SoftPay, banks, MNOs, couriers…
• Jointly expanding to South East Asia
countries through partners network
Best ICT solutions award

4. PEACESOFT GROUP & NGAN LUONG

5. PEACESOFT GROUP & NGAN LUONG Universal API payment
cross countries
Direct API integration to boost your
Vietnam revenue by 10 more times!
Indirect source of fund
Publisher
Telco prepaid
card
Dosmetic
game prepaid
card
SMS charging
Domestic Bank
ATM
Credit
WEB/WAP API
integration

6. MARKET BY NUMBERS AND OVERSEA PUBLISHER OPPORTUNITY
$300 million in annual
gaming revenue
+ $40 million is attributed to mobile gaming
130 million mobile subscribers
+ 55 million active
+ 17 million smart phone with 83% CAGR
19 million online gamers (15-20% are paying)
+ Annual ARPU: $15
+ Annual ARPU for paying gamers: $100
FASTEST GROWING GAMING
MARKET IN SEA
31 million internet users
+ 5 million broadband
subscribers
+ 11 million Facebook user
Source: Various
$660 million forecasted
revenue in 2014

7. MARKET BY NUMBERS AND OVERSEA PUBLISHER OPPORTUNITY
Strict government regulation
limits gamers selection
Huge shortage for gamers needs
BLUE SEA FOR PUBLISHERS

8. WHY TELCO BILLING PREVAILS?
85%
5%
6%
4%
SALES VOLUME
DISTRIBUTION
Prepaid card
Premium SMS
Banking
Other
Source: Nganluong

9. WHY TELCO BILLING PREVAILS?
THE POPULARITY OF
CASH BASED TRANSACTIONS
“TELCO BILLING IS THE CHAMP OF DIGITAL
CONTENT PAYMENT IN VIETNAM”
RELATIVELY MONOPOLY
BUSINESS NATURE
UNPARALLELED
DISTRIBUTION NETWORK
UNMATCHABLE
USERS BASE

10. TELCO BILLING OPTIONS, PROS & CONS
PREMIUM SMS
OTP SMS
PREPAID CARD
MOBILE WALLET
+ High availability
+ Charge directly into airtime balance
+ Support pay on demand & subscription model
+ Responsive user engagement and activation
+ Low payout
+ Moderate availability
+ High payout
+ Pay on demand only
+ Timeout rate can be an issue
+ High availability
+ Charge directly into airtime balance
+ Support pay on demand & subscription model
+ Easier for in-game/in-app implementation
+ Low payout
+ High payout
+ Can be funded from various sources
+ Balance can only be used for Telco VAT
services and digital goods

11. NEAR FUTURE TRENDS
BANKING SERVICES
PENETRATION TAKING OFF
TELCO OWNED SMS
PAYMENT GATEWAY
High payout opportunity
Less dependable on Telco billing
Higher payout than short code service
TELCO PROPRIETY
APPSTORE
Increase margin base on revenue
sharing model
Taking advantage of Telco user base
and direct communicating tool
CONVENIENCE STORE
PIN DISTRIBUTION
CYBER CAFÉ PIN
DISTRIBUTION
Compte directly with Telco channel
Possibility to implement on-site
communication with gamer base
• Garena Gcafe
• Mai Hoang ISM Pro
• VNG CSM

12. CONCLUDED
AND MANY THANKS FOR YOUR ATTENTION