Research and Markets: The Vietnam Telecom Market Will Generate $5.9bn in Service Revenue in 2010, Almost Doubling the $3.2

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/e00276/vietnam_telecom_in) has announced the addition of the "Vietnam Telecom Intelligence Report - Vietnam: 3G Services and Strong Competition Add Up to a High-Growth Market" report to their offering.

Operators are using 3G as the key technology to drive Vietnam's telecom market growth, just as regulation continues to liberalize, allowing foreign firms greater access to the market. Due to the proliferation of 3G services, Pyramid expects to see more future growth coming from mobile data services, with a 13.4 percent CAGR through 2015, according to this new report.

Vietnam: 3G Services and Strong Competition Add Up to a High-Growth Market offers a precise profile of the country's telecommunications, media, and technology sectors based on proprietary data from Pyramid's research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies.

Until recently, the Vietnam telecom market was monopolistic, with strict controls on foreign ownership of telecom operators, notes Emily Smith, analyst at Pyramid Research. "This year the market has seven MNOs and two MVNOs, and regulation continues to liberalize, allowing foreign firms greater access to the market," Smith says. "Due to the tough competition for market share, rates plunged to the point that it was cheaper this year to subscribe to a 3G service than GPRS."

However, by 2011, the decline in voice revenue will be counterbalanced by the rise in data revenue made possible by the 3G and LTE networks that are being built, allowing transmission of greater traffic volume. "Pyramid expects to see a shift in data traffic away from SMS as other data services gain ground," Smith adds.

"Due to low fixed penetration rates in Vietnam and extremely low 3G tariffs, mobile broadband will quickly gain ground in the market as many consumers will rely on mobile phones for Internet access," explains Smith. "Four operators will begin LTE trials this year, but the high costs associated with this nascent technology will severely limit demand through 2015."

Given the gap between PC and Internet penetration, as well as the low broadband penetration rate, Pyramid sees significant potential for mobile broadband through 3G services. "Mobile operators should ensure that there is enough capacity in the backhaul so that 3G can be effectively leveraged as a mobile broadband service," Smith notes.

Executive Summary:

The Vietnam telecom market will generate $5.9bn in service revenue in 2010, almost doubling the $3.2bn generated in 2007. Most of this growth has been from the mobile sector, and the bulk of the revenue increase through 2015 will continue to be from the mobile sector. Due to the proliferation of 3G services, we will see more future growth coming from mobile data services, with a 13.4% CAGR through 2015. While Vietnams mobile subscription penetration rate will be 145% this year, we forecast that the actual user penetration will stand at 61%, meaning there is still an opportunity for organic growth of 20% or more, especially as tariffs continue to decrease in battles for market share. Fixed-line services and pay-TV markets will also see strong growth through 2015, in the 18% range. Fixed operators, like VNPT, are expanding their networks, and more players are entering the pay-TV market this year. Both the broadband Internet and pay-TV markets will double by 2015.

Key Topics Covered:

• Executive summary
• Market and competitor overview
• Vietnam in a regional context
• Economic, demographic and political context
• Regulatory environment
• Demand profile
• Service evolution
• Competitive landscape
• Major market players
• Segment analysis
• Mobile services
• Fixed services
• Pay-TV
• Identifying opportunities

For more information visit http://www.researchandmarkets.com/research/e00276/vietnam_telecom_in

Source: Pyramid Research, Inc.

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Research and Markets
Laura Wood, Senior Manager,
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KEYWORDS:   Viet Nam  Asia Pacific

INDUSTRY KEYWORDS:   Technology  Telecommunications  Mobile/Wireless

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