1. Mobile VAS market in Vietnam Presented by: GaCon

2. Contents 1. About me 2. MVAS market in Vietnam 3. Opportunities and Threats 4. Market trends 5. Some Suggestions 6. Q&A

3. My Profile Full name: Nguyen Minh Quang Nickname: GaCon, Yukidaro Job title: Business Development Manager Company: Galaxy Mobile JSC My Schools: - Ha Noi Foreign Trade University (BBA) - Ha Noi School of Business (MBA) My jobs: - Business Development Manager - Online Mobile Product Manager - SMS Content Developer

4. My company Member of Galaxy Group Founded in 2007 MVAS content provider for Viettel, Mobifone, Vinaphone Top 10 in MVAS market Key Services: SMS, WAP, Web, Music

5. MVAS Market in Vietnam

6. Number of Telcos: 7 Telcos Number Viettel 098, 097, 0165, 0166, 0167, 0168, 0169 + 0164 Mobifone 090, 093, 0121, 0122, 0126, 0128 + 0120 Vinaphone 091, 094, 0123, 0125, 0127 ,0129 + 0124 Sfone (CDMA) 095 + 0155 Vietnamobile 092 + 0188 Beeline 0199 + 099 EVN Telecom (CDMA) 096

7. Number of mobile subscribers Total number issued: 170 Millions Number of mobile subscribers (04/2011 - GSO): 157 Millions Actual live (within 30 days): 45% (60-70 Millions) (source: gso.gov.vn)

8. Actual Live Mobile subscribers by Telcos Telcos Subscriber (estimated) Viettel 20 - 25 Millions Mobifone 18 - 20 Millions Vinaphone 15 -18 Millions Vietnamobile 2 - 4 Millions Sfone (CDMA) 2 Millions Beeline >1 Millions EVN Telecom (CDMA) < 1Millions (source: seft survey)

9. 3G penetration Actual live 3G penetration: 5 8% according to recent surveys

10. Number of mobile users: Total number of mobile users: about 30-35 Millions ~ 40% of population (90 Millions) 2012: 50 Millions (forecast) (source: several different sources)

11. Number of mobile handsets Number of mobile handsets in use: 34,5 Millions (10/2010) (source: http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use) (source: Thegioididong)

12. Number of CPs (Content Providers) Officially: ~250 Unofficially: ? Most of them are SMEs Top CPs: - VMG - BlueSea - VTC - VASC - Galaxy - VCC - VDC - ABC - iNET - GapIT - Tinh Van

13. Mobile VAS market size (CPs only) Current Mobile VAS market size: 4,500 Billions (source: seft survey)

14. SMS Service category Lottery (result, prediction) Multi Media (ring tone, wallpaper, theme,) Football (info, result, tip) SMS Feeding (online services) GPRS/3G setting

15. SMS Service category (cont.) Text Info (SMS banking, sex-health, funny, stock, horoscope, tips,) Networking (chat, dating, voting,) Text Game (lucky draw, quiz, reverse auction,) Others (donation, error,)

16. Revenue Contribution by SMS services

17. Commercial Terms SMS services (MO charging) SMS sub charging (MT charging): Telco 55% - CP 45% WAP charging: same ratio with SMS MO charging Ring back tone: Tecos get 70%, CPs get maximum 30% (50% of this will pay for singers and authors) Mobile marketing: Telcos treat CPs = Agencies

18. Marketing channels Newspaper TV Online WAP Portal In-App App Portal/Store Direct marketing: Spam SMS Others: Leaflet, poster,

19. Business Models Public media Spamming Supportive Content producer Content Hub Money laundering

20. Opportunities and Threats

21. Opportunities Fast growing Economic and Telecom sector Huge mobile user base (young and active) More open to: Mobile game, social network, mobile marketing,... 3G is opening new era of Mobile Internet Telcos are willing to cooperate with CPs Convenient Payment: Online Mobile

22. Threats Impact of globalization: High Inflation, interest rate CPs businesses are depending on Telcos (unequal treating and uncertain policy) Highly competitive market Telcos are jumping into this sector under VAS Centers Regulation violation and problem of TRUST Rapid change in technology and user behaviors Labor: Limited (often jump between CPs), few talents, medium-high labor cost

23. Market trends

24. Market trends SMS services are still main source of revenue within next 3 years Next 3 years will be the age of Mobile Web and Mobile Application Mobile contents: Go Online, Go social and Personalize Interactive between 3 screens: TV Desktop - Mobile Huge opportunities on Mobile marketing and B2B services

25. Market trends (cont.) Socialize in mobile content supplying Reduce number of CPs, increase MnA and number of sub-CPs Telcos will lose their control on VAS when smart phones and mobile internet penetration increase Bypass telcos when apply online payment

26. Some suggestions

27. Some suggestions How to start? - For start-ups - For developers Where to focus? - SMS: Actual needs in large scale, interactive - B2B market and mobile marketing - Mobile internet contents (Web and Application) - Online Mobile communities

28. Some suggestions (cont.) What to remember? - Strategic building your system - Listen to your users - Relationship is important - Keep up your innovation - Try to create a better service. But dont you take too much time to develop a perfect one - Let your users do your marketing work

29. Nguyen Minh Quang quangcb@gmail.com 0904862366 Kid_quai /gacon @Yukidaro /nguyenminhquang Thank you for listening!

30. QnA