viettel group viettel – at a glance telecom services

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By: Ms. Nguyen Thanh Xuan

Chief Strategy Officer – Viettel Group

� Viettel – At a glance

� Telecom services – Bandwidth hunger

� Digital dividend – How to get best benefit?

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� Viettel – At a glance

� Telecom services – Bandwidth hunger

� Digital dividend – How to get best benefit?

� Telecom Market Entry: 2000

� Mobile Market Entry: 2004

� Growth (2000 ÷ 2010):

• Revenue: From 3M$ To 5B$ (1,500+ Times)

• Subscribers: From 0 To 50M (#1 Mobile)

• BTS : From 0 To 50,000 (#1)

• FO: From 0 To 150,000Km (#1)

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� Presence: Vietnam (Viettel), Cambodia (Metfone), Lao (Unitel), Haiti (Natcom), Mozambique,

Peru…

� Full-licensed: Mobile, Fixed, Internet,

Network Infrastructure

440

975

1,941

3,350

5,360

-

1,000

2,000

3,000

4,000

5,000

6,000

Y2006 Y2007 Y2008 Y2009 Y2010

Viettel Revenue 2006 - 2010 (million USD)

Mobile Subscribers (K) Broadband Subscribers

----

10'000 10'000 10'000 10'000

20'000 20'000 20'000 20'000

30'000 30'000 30'000 30'000

40'000 40'000 40'000 40'000

50'000 50'000 50'000 50'000

60'000 60'000 60'000 60'000

2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010

4'345 4'345 4'345 4'345

11'787 11'787 11'787 11'787

28'469 28'469 28'469 28'469

47'500 47'500 47'500 47'500 51'068 51'068 51'068 51'068

4'4934'4934'4934'493 39'94039'94039'94039'940102'896102'896102'896102'896225'180225'180225'180225'180289'663289'663289'663289'663333'109333'109333'109333'109

813'986813'986813'986813'986

4'266'4234'266'4234'266'4234'266'423

0000

500'000500'000500'000500'000

1'000'0001'000'0001'000'0001'000'000

1'500'0001'500'0001'500'0001'500'000

2'000'0002'000'0002'000'0002'000'000

2'500'0002'500'0002'500'0002'500'000

3'000'0003'000'0003'000'0003'000'000

3'500'0003'500'0003'500'0003'500'000

4'000'0004'000'0004'000'0004'000'000

4'500'0004'500'0004'500'0004'500'000

20042004200420042005200520052005200620062006200620072007200720072008200820082008200920092009200920102010201020102011201120112011

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� Largest infrastructure in Indochina.

� Vietnam:

+ Coverage: 97% population

+ 2G: 28,000 BTS

+ 3G: 20,000 BTS

� Cambodia:

+ 2G:3,700 BTS

+ 3G: 1,300 BTS

� Lao:

+ 2G: 1,800 BTS

+ 3G: 500 BTS

� Viettel – At a glance

� Telecom services – Bandwidth hunger

� Digital dividend – How to get best benefit?

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� Any Where: Coverage (100% population)

� Any Time: Big Capacity& High Speed

� Any Body: Packages (From 3 years old)

� Any Price: Marginal cost (almost 0)

� Telecom Infrastructure Like Roads & Highways

� Telecom = Infrastructure Of Information Society

� High Telecom Density = High GDP Growth

• 10% Mobile Penetration => 1% GDP Growth

• 10% Broadband Internet => 1.5% GDP Growth

� Telecom Services = Big Industry (3-5% GDP)

� Telecom Growth Can Be High: (2-4)xGDPGrowth

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• 2G = 13Kb/s & 5-10 min/day/user

� 3G = 30Kb/s & 20-30 min/day/user

� 3G BW=3-5 2G BW (Assumption for 3G: bits/Hz 3 times higher)

� 3.5G (HSPA) = 1.5 - 3Mb/s

� 4G (LTE) = 10 – 15Mb/s

� Viettel – At a glance

� Telecom services – Bandwidth hunger

� Digital dividend – How to get best benefit?

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2011- 2020

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470 MHz

PAL/DVBPAL/DVBPAL/DVBPAL/DVB----T/DVBT/DVBT/DVBT/DVB----HHHH TEMPORARYTEMPORARYTEMPORARYTEMPORARYDVBDVBDVBDVB----T/PALT/PALT/PALT/PAL

694MHz 790MHz

1111stststst Digital Digital Digital Digital DividendDividendDividendDividend

800/900800/900800/900800/900 MHz MHz MHz MHz cellularcellularcellularcellular

806 MHz

470 MHz

After 2020

PAL/DVBPAL/DVBPAL/DVBPAL/DVB----T/DVBT/DVBT/DVBT/DVB----HHHH 2nd Digital 2nd Digital 2nd Digital 2nd Digital Dividend ?Dividend ?Dividend ?Dividend ?

694MHz 790MHz

1111stststst Digital Digital Digital Digital DividendDividendDividendDividend

800/900800/900800/900800/900 MHz MHz MHz MHz cellularcellularcellularcellular

806 MHz

‼

� Benefit for the country: in term of socio-economic impact.

� Optimize investment for telcos: LTE deployment with 700MHz and 2500 MHz band.

� Best services for customers.

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� Economic benefit: contribute to GDP, increase Subscriber base

� Social benefit: narrow digital gap between cities and rural areas, improve education and health services.

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� CAPEX

� Rural Coverage

� Equipment Readiness

� Coverage: 2.5 times.

� CAPEX: 5 times.

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� 700MHz band: Most economical.

� For an area of 60km2, population of 52K:

FixedFixedFixedFixed LTE 700LTE 700LTE 700LTE 700 LTE 2500LTE 2500LTE 2500LTE 2500

No of station 1 5

Fee/household ($) 120 2.4 12

� Vendors.

� Data cards: 65% LTE 700 supported.

� Handset: 90% LTE 700 supported.

� Viettel trial.

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� Bandwidth: 10 MHz.

� Download speed: 74 Mb/s.

� Services: HD TV, HD video call, HD conference.

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