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In this page: Penetration and growth rate Factors leading to growth in penetration rate of cellular phone market Mobile operators in Vietnam

In this page:

Penetration and growth rate
Factors leading to growth in penetration rate of cellular phone market
Mobile operators in Vietnam

Penetration and growth rate
According to International Telecommunication Union, Vietnam has experienced some of the highest growth in telecommunication industry over recent years. Telephones Although Vietnam has achieved rapid growth momentum for its telecommunications services over the years, it was predicted that the fixed line demand would languish over these years as focus shifted to mobile services. However, there has been a surprising observation that the country’s fixed line demand is remaining constant. The strong take-up of fixed lines is mainly due to reduction in tariffs introduced in the country in June 2007. As of the end of September 2008, there were about 13 million fixed-lines in Vietnam, reflecting a growth rate of 17.1% from the previous year. (Source: MIC) Mobiles Vietnam had 30 million new mobile connections in Q42008, representing a total of 67.2 million subscribers - Asia Pacific's seventh largest (source: ITU). As such, the mobile penetration rate in Vietnam now stands at approximately 70 users per 100 people. Mobile penetration is predicted to further grow by 270% to reach 46 million mobile users by 2010 (source: Ogilvyone). This growing demand for mobile services has been driven much by Vietnam's growing youth population with high disposable incomes. (source: IntellAsia) However there is a marked difference between mobile penetration rates in urban and rural Vietnam - 84% of urban dwellers have mobile phones, while only 33% of rural inhabitants do. (source: TNS) At the end of 2008, the country’s total telephone penetration rate had soared to 94.6% from 12.3% four years earlier. This trend is forecasted to continue in the next 5 years, with a forecasted total telephone penetration of 139.0% at the end of 2013. Vietnam’s penetration rate is expected to cross 100% in early 2009. Vietnam is one of the world’s top 10 countries in terms of information and communications technology (ICT) growth and should remain in that list for the next 5 years. Until recently, the country’s incumbent operator VNPT enjoyed a monopoly in the fixed and mobile arena. This situation is however rapidly evolving, with 7 fixed operators, 7 licenses mobile operators and 65 ISPs. Vietnam’s fixed market has undergone a steady growth of 24.5% in the last 5 years. Nevertheless, this trend started to decrease in 2008 and should continue to do so as fixed/mobile substitution accelerates. The number of fixed customers increased by 14.4% in 2008, to reach 13.1 million. The number of fixed lines is therefore expected to grow by an average of 5.2% over the next 5 years to reach 16.9 million and a penetration of 18.2% at the end of 2013. Vietnam's mobile Internet population has grown by 303.2% since January 2008. Current mobile Internet users are becoming more active too, with the number of page views increasing by 405.2% since January 2008. Mobile Internet users in Vietnam average 104 page views per visitor. (source: Opera) Taken from: Asia Pacific Digital Marketing Yearbook, 2009

Penetration and growth rate

According to International Telecommunication Union, Vietnam has experienced some of the highest growth in telecommunication industry over recent years.

Comparison of Penetration Rate Rate between Fixed Telephone and Cellular Phone

Comparison of Penetration Rate Rate between Fixed Telephone and Cellular Phone

Telephones Although Vietnam has achieved rapid growth momentum for its telecommunications services over the years, it was predicted that the fixed line demand would languish over these years as focus shifted to mobile services. However, there has been a surprising observation that the country’s fixed line demand is remaining constant.

The strong take-up of fixed lines is mainly due to reduction in tariffs introduced in the country in June 2007. As of the end of September 2008, there were about 13 million fixed-lines in Vietnam, reflecting a growth rate of 17.1% from the previous year. (Source: MIC)

Mobiles Vietnam had 30 million new mobile connections in Q42008, representing a total of 67.2 million subscribers - Asia Pacific's seventh largest (source: ITU). As such, the mobile penetration rate in Vietnam now stands at approximately 70 users per 100 people. Mobile penetration is predicted to further grow by 270% to reach 46 million mobile users by 2010 (source: Ogilvyone). This growing demand for mobile services has been driven much by Vietnam's growing youth population with high disposable incomes. (source: IntellAsia)

However there is a marked difference between mobile penetration rates in urban and rural Vietnam - 84% of urban dwellers have mobile phones, while only 33% of rural inhabitants do. (source: TNS)

At the end of 2008, the country’s total telephone penetration rate had soared to 94.6% from 12.3% four years earlier. This trend is forecasted to continue in the next 5 years, with a forecasted total telephone penetration of 139.0% at the end of 2013. Vietnam’s penetration rate is expected to cross 100% in early 2009. Vietnam is one of the world’s top 10 countries in terms of information and communications technology (ICT) growth and should remain in that list for the next 5 years. Until recently, the country’s incumbent operator VNPT enjoyed a monopoly in the fixed and mobile arena. This situation is however rapidly evolving, with 7 fixed operators, 7 licenses mobile operators and 65 ISPs.

Vietnam’s fixed market has undergone a steady growth of 24.5% in the last 5 years. Nevertheless, this trend started to decrease in 2008 and should continue to do so as fixed/mobile substitution accelerates. The number of fixed customers increased by 14.4% in 2008, to reach 13.1 million. The number of fixed lines is therefore expected to grow by an average of 5.2% over the next 5 years to reach 16.9 million and a penetration of 18.2% at the end of 2013.

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Vietnam's mobile Internet population has grown by 303.2% since January 2008. Current mobile Internet users are becoming more active too, with the number of page views increasing by 405.2% since January 2008. Mobile Internet users in Vietnam average 104 page views per visitor. (source: Opera)
Taken from: Asia Pacific Digital Marketing Yearbook, 2009

Factors leading to growth in penetration rate of cellular phone market
1. Lower priced mobile phones and service plans 2. Increased competition between the mobile operators 3. Network expansion into rural areas of Vietnam 4. Increasing youth population with high disposable incomes 5. Broadcast capabilities and data usage through 3G networks Source: Wireless Federation

Factors leading to growth in penetration rate of cellular phone market

1. Lower priced mobile phones and service plans
2. Increased competition between the mobile operators
3. Network expansion into rural areas of Vietnam
4. Increasing youth population with high disposable incomes
5. Broadcast capabilities and data usage through 3G networks

Source: Wireless Federation

Mobile Operators in Vietnam
Currently, there are at least 6 operating mobile operators in Vietnam, consisting of MobiFone, VinaPhone, Viettel, EVN Telecom, Saigon Postel and Hanoi Telecom. A newcomer, GTel Mobile (a joint venture between Russia’s second largest mobile provider and two Vietnam state-owned companies) has just been awarded GSM license and frequencies in September 2008 and is scheduled to launch its commercial services in the middle of 2009. Over 80 million mobile subscribers in Vietnam are subscribed to Viettel (26 million) and VNPT's two subsidiaries, MobifFone (26 million) and Vinaphone (20 million). (source: IntellAsia)

Mobile Operators in Vietnam

Currently, there are at least 6 operating mobile operators in Vietnam, consisting of MobiFone, VinaPhone, Viettel, EVN Telecom, Saigon Postel and Hanoi Telecom. A newcomer, GTel Mobile (a joint venture between Russia’s second largest mobile provider and two Vietnam state-owned companies) has just been awarded GSM license and frequencies in September 2008 and is scheduled to launch its commercial services in the middle of 2009.

Over 80 million mobile subscribers in Vietnam are subscribed to Viettel (26 million) and VNPT's two subsidiaries, MobifFone (26 million) and Vinaphone (20 million). (source: IntellAsia)

yinyin.tan	Latest page update: made by yinyin.tan , Nov 12 2009, 12:53 AM EST (about this update About This Update Edited by yinyin.tan 233 words added 170 words deleted 1 image added view changes - complete history)
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