Telecom The Future Investment

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Telecom - The Future Investment

• Nguyen Manh Hung
• Vice President
• Viettel Corporation

2
Children are our Future
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Telecom The Important Infrastructure

• Telecom Infrastructure Roads, High Ways
• Telecom Density High GDP Growth
• 10 Mobile Penetration gt 1 GDP Growth
• 3-5 Broadband Internet gt 1 GDP Growth
• Telecom Infrastructure Of Information Society
• Telecom Services Big Industry (5-7 GDP)
• Telecom Growth Should Be High (2-4)xGDP Growth

4
Vietnam A Developing CountryWith 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 80
• Fixed 20 (80 Households)
• Broadband Internet 3 (12 Households)
• High Telecom Revenue 5-6 GDP (Average3)
• Telecom Growth (3-4)xGDP Growth

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Vietnam 5 Years 60 Years

• The Number Of Telephone Lines Developed In 60
  Years
• 15M Lines
• 1945-2004
• The Number Of Telephone Lines Developed in 5
  Years
• 2004-2009
• 60M Lines

6
Viettel The New Telecom Operator The Fastest
Growing Company

• Telecom Market Entry 2000
• Mobile Market Entry 2004
• Growth (2000 2009)
• Revenue 3M gt 3,5B (1,000 Times)
• Subscribers 0 gt 33M (1 Mobile)
• BTS 0 gt 20,000 (1)
• FO 0 gt 100,000Km (1)

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Viettel The Business Philosophy

• A Business Needs a Philosophy To Be Guided

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Viettel The Business Philosophy (1)

• Telecom Service Commodity
• Any Where 100 Population Coverage
• Any Time Big Capacity For Peak Time
• Any Body Different Packages
• Any Price 0 Under 0 (1-2/Month For Free
  Calling)
• When Telecom Service Commodity ?
• Capex/Subscriber 20-30
• Handset 20-30

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Viettel The Business Philosophy (2)

• High Tech Economy Of Scale
• High Tech R D
• Cost Per User 1/N
• More Users Less Cost
• The Business Strategy
• The More Users
• The Cheaper Price
• So Make The Price Cheaper First
• gt Service Is Affordable For Most
  People

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Viettel The Business Philosophy (3)

• 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 Them Basic Telecom Services FOC

Poor Get Richer And Become Our Customers Later
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Viettel The Business Philosophy (4)

• Brand Building Big Money
• 100-150M/Year
• Pay To TV Newspaper
• The Business Strategy
• 100-150M/Year For Branding, By Giving To The
  Poor (Free Internet To Schools, Telephone For
  Farmers)

The Company Has Stronger Brand Recognition
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Viettel The Business Philosophy (5)

• Viettel Vision
• Every Person One Broadband Mobile
• Every Family
• One Fixed Phone
• One Broadband Internet
• One HD Television
• Timing 2015

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Viettel The Business Philosophy (6)

• The Speed Of Telecom Development
• Not Decided By GDP/Capita
• Not Decided By GDP Growth
• Its Decided By Operators Strategy
• 80 Penetration in 10 Years High Price Gradual
  Reduction
• 80 Penetration in 3 Years Cheap Price From Day
  One
• Viettel Strategy ABC
• Advanced Technology, Best Quality
• Big Network Coverage Capacity
• Cheap Price/Big Customer Base

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Viettel The Social Responsibilities

• Social Responsibility Is An Investment In Our
  Future
• Investment In Our Future Is A Sustainable
  Development

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Viettel The Social Responsibilities (1)

• 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
• Free Forever

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Viettel The Social Responsibilities (2)

• Every Farmers House One Fixed Phone
• 15M Farmers Houses
• 10M Farmers Households Not Having Fixed Phone
• Free Installation, Free Monthly Fee,
  Free1/Month Calling
• 5M New Farmer Subscribers Every Year
• After 6-12 Months, The ARPU Reaching 2-3

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Viettel The Social Responsibilities (3)

• Wireless Coverage For Border, Islands Coastal
  Areas
• 2,500Km Border
• 2,500Km Coastal (100Km Radius)
• 100 Islands
• Viettel The Only Company To Cover These Areas

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Viettel The Social Responsibilities (4)

• E-Government Programes
• 1,500 Viettels Programmers In House
• Do First Get Paid After
• If Not Paid, It Will Be Viettels Contribution
  To The Government

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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 gt Benefit Both
  Operator Customers, The Country
• Investment In Future is Sustainable Development

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• Thank you!