Telecom A View Of Viettel. Nguyen Manh Hung Vice President Viettel Group

Transcription

1 Telecom A View Of Viettel Nguyen Manh Hung Vice President Viettel Group

2 Telecom The Important Infrastructure 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)xGDP Growth

3 Vietnam: A Developing Country With A High Telecom Density A Developing Country: Big Population: 86M 70%+ Population Living in Rural Areas Low GDP/Capita: 1,000$ A High Telecom Density: Mobile: 100% Fixed: 20% (80% Households) Broadband Internet: 5% (20% Households) High Telecom Revenue: 5-6% GDP (Average=3%) Telecom Growth = (3-4)xGDP Growth

4 Vietnam: 5 Years = 60 Years The Number Of Subs Developed In 60 Years: From : 15M Subs The Number Of Subs Developed in 5 Years: From : 80M Subs The Reasons Competition New Concept And Philosophy Of Doing Business

5 Viettel: The New Telecom Operator & The Fastest Growing Company Telecom Market Entry: 2000 Mobile Market Entry: 2004 Growth ( ): 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)

6 Viettel: The Business Philosophy A Business Needs a Philosophy To Be Guided!

7 Viettel: The Business Philosophy Telecom Service = Commodity Any Where: 100% Population Coverage Any Time: No Congestion For Peak Time Any Body: Different Packages Any Price: 0 & Under 0 (1-2$/Month For Free Calling) When Telecom Service = Commodity? Network Capex/Subscriber = 20-30$ Handset = 20-30$

8 Viettel: The Business Philosophy High Tech = Economy Of Scale High Tech Cost = R&D Cost (Mainly) Cost Per Unit = 1/N => More Users = Less Cost ICT Inputs = Sand & Brain (Unlimited & Cheap) ICT = Economy Of Free Basic Service Is Becoming Free If It s Digital, Sooner Or Later It s Going To Be Free! The Business Strategy: Make The Price Cheaper First => Service Is Affordable For Most People

9 Viettel: The Business Philosophy The Poor Are Not Poor Forever If We Help Them If We Give Them Education If We Give Them Basic Needs Basic Telephone The Business Strategy: Doing Business With Poor = Investing In Future Customers = Investing In Country Future Give Poor People Basic Telecom Services FOC Poor Get Richer And Become Our Customers Later!

10 Viettel: The Business Philosophy Branding = Big Money M$/Year By Paying To TV & Newspaper The Business Strategy: Branding By Giving Basic Services FOC To The Poor (Free Internet For Schools, Free Telephone For Farmers, ) The Company Has Stronger Brand Recognition!

11 Viettel: The Business Philosophy Viettel Vision: Every Person: One Broadband Mobile Every Family:One Fixed Phone; One Broadband Internet; One HD Television Timing: The Next Decade

12 Viettel: The Business Philosophy The Solution For BB Internet Booming: Network: 3G (Viettel: 22,000 Nodes B) Tariff: The Lowest Package Of 2$/Month CPE: Smartphone, xpad: Free Market PC For Home: Government Subsidy (Universal Service Fund)

13 Viettel: The Business Philosophy BB Internet And New Horizons: Communications For M2M: 15B New Subs Contents For Education, Health & Every Thing Cloud Computing And More, Depending On Your Imagination!

14 Viettel: The Business Philosophy Operator Transformation: Service Provider -> Information Provider Service Provider -> Service Deliver Main Asset: Customer Base Revenue Sharing: Content Provider Apps Store Handset Manufacturer (iphone) And Customers!!!

15 Viettel: The Business Philosophy The Speed Of Telecom Development: Not Decided By GDP/Capita Not Decided By GDP Growth It s Decided By Operator s Strategy: 2 Options 80% Penetration in 15 Years: High Price & Gradual Reduction 80% Penetration in 5 Years: Cheap Price From Day One Viettel Strategy: ABC Advanced Technology, Best Quality Big Network: Coverage & Capacity Cheap Price & Big Customer Base

16 Viettel: The Social Responsibilities Social Responsibility Is An Investment In Our Future Investment In Our Future Is A Sustainable Development

17 Viettel: The Social Responsibilities Free Internet To Every School 40,000 Schools: From Primary to University 25M Students Broadband Internet: EDGE, 3G, ADSL, FTTx Free Installation, Free Monthly Fee, Free Usage And Free Forever! Children Are Our Future!

18 Viettel: The Social Responsibilities Every Farmer s House One Fixed Phone 15M Farmers 10M Farmer s Households Not Having Fixed Phone Free Installation, Free Monthly Fee, Free1$/Month Calling After 6-12 Months, The ARPU Reaching 2-3$ Farmers Are Our Parent!

19 Viettel: The Social Responsibilities Wireless Coverage For Border, Islands & Coastal Areas 2,500Km Border Coverage 2,500Km Coastal Coverage (100Km Radius) 100 Islands Viettel: The Only Company To Cover These Areas

20 Viettel: The Social Responsibilities E-Government Programs Do First Get Paid After If Not Paid, It Will Be Viettel s Contribution To The Government Government Is A Country s Brain!

21 Conclusions A Developing Country Can Have a High Telephone Density like a Developed Country A Developing Country Can Have High Telecom Penetration In Short Time Investing In Poor People By Giving Them Telecom Access - The Fastest Way of Country Development The Operator Not Giving Money For Free But Investing In Future Customers => Benefit Both Operator & Customers, & The Country Investment In Future is Sustainable Development

22 Thank you!