Accelerating 3G adoption in Vietnam
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One year after the launch of 3G in Vietnam, 10% of mobile subscriptions were 3G. To accelerate 3G adoption, the document recommends expanding affordable 3G device availability, promoting mobile internet, video and applications, offering affordable data pricing plans, and marketing the 3G lifestyle. The key to driving data usage is availability of smartphones and media phones, even in prepaid-heavy markets.
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Accelerating 3G adoption in Vietnam
- 1. 1 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Accelerating 3G adoption in Vietnam November 2010
- 2. 2 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Content Evaluating 1 year of 3G in Vietnam Accelerating 3G Adoption in Vietnam • Expand 3G device availability and affordability • Mobile internet, video and applications • Affordable and inventive data pricing • Marketing a 3G Lifestyle
- 3. 3 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Evaluating 1 year of 3G in Vietnam
- 4. 4 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Mobile Insights 2010Mobile Insights 2010Mobile Insights 2010Mobile Insights 2010 Yes 48%No 52% 93 92 88 MobiFone Viettel Vinaphone 3G awareness Base: Current users (n=3,000) 6 months after launch, half of mobile users were aware of 3G . And, only 3% of mobile users subscribed to 3G service. Source: Q73. Are you aware of 3G service for mobile phone? Q75. Which mobile service provider has provided 3G service? Base: Those who are aware of 3G (n=1,591) 3G Usage - Total Perceived 3G providers
- 5. 5 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Mobile Insights 2010Mobile Insights 2010Mobile Insights 2010Mobile Insights 2010 75 74 63 43 27 28 15 12 10 7 73 72 57 46 35 28 17 19 16 12 MobiFone users (n=466) MobiFone users (n=466) Vinaphone users (n=271) Vinaphone users (n=271) Viettel users (n=822) Viettel users (n=822) Q74. Please let me know what service do you know of 3G? Perceived Types of 3G services 77 76 68 35 24 20 13 15 16 8 Mobile TV Video call Mobile internet Web surfing Online music Game online for mobile phone Pushmail Applications for mobile phones Picture and video clip share via website/sms/email Mobile broadband Base: Khách hàng có nhận biết về 3G Mobile TV, video call, mobile internet and web surfing were the most well- known 3G services among mobile phone users.
- 6. 6 Copyright © 2010 The Nielsen Company. Confidential and proprietary. 3G penetration 99% 114% 84% 126% 72% 22% 14% 11% U SA M alaysia Indonesia Vietnam Mobile penetration 3G Penetration Source: Q3’2010 Wireless Intelligence One year after launch, one in ten Vietnam subscriptions are 3G. This achievement is quite typical compared to other markets. Launched 2006 Launched 2009 Launched 2005 Launched 2002
- 7. 7 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Mobile applications used in the last 30 days 27% 16% 11% 8% 7% 37% 19% 16% 14% 12% 9% 25% 18% 15% 14% 10% 8% 6% 3% 5% 5% 4% 4% 3% 2% 2% 2% 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% Mobile internet Ringtone downloads Wallpaper/Screensaver downloads Streaming audio Full-track music downloads Picture messaging/MMS Text alerts Instant messaging Content uploads Game downloads Mobile video Email Software downloads Picture downloads Location-based services Video messaging Mobile commerce Online games VoIP USA Vietnam All Subscribers (n=70128, 3000) Current main data usage is on mobile Internet, simple downloads and music
- 8. 8 Copyright © 2010 The Nielsen Company. Confidential and proprietary. 27% 5% 36% 11%U SA Vietnam Average High spender (US$=$61+, Vietnam=$10+) 17% 2% 10% 1% 30% 9% 34% 6% U SA Vietnam 15-24 years 25-34 years 35-44 years 45-54 years 28% 6% 25% 4% U SA Vietnam Male Female Profile of Mobile Internet users 14% 28% 5% 19% U SA Vietnam Postpaid users Prepaid users Mobile Internet users in Vietnam, as with other data services, skew strongly to the under 35s, postpaid and high ARPU. Still a very “early adopter” profile.
- 9. 9 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Expand 3G device availability and affordability
- 10. 10 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Smartphones now make up 1 in 4 mobile phones in the US, growing from 18% to 25% in 1 year. Source: Nielsen Mobile Insights, Q2 ‘09 – Q2‘10 USA Data
- 11. 11 Copyright © 2010 The Nielsen Company. Confidential and proprietary. 95.994.895.895.795.093.895.494.794.694.495.194.793.993.291.690.390.589.687.785.983.080.080.181.176.7 3.5 4.2 3.2 3.3 4.0 4.6 3.5 3.7 3.6 3.8 2.9 2.3 2.8 2.7 3.4 3.1 2.6 3.9 4.3 5.0 5.9 7.2 7.7 6.6 10.1 0.6 1.0 1.0 0.9 1.0 1.5 1.1 1.6 1.8 1.8 2.1 3.0 3.3 4.0 4.9 6.6 6.9 6.5 8.0 9.1 11.112.912.212.313.2 APR '08 MAY '08 JUN '08 JUL '08 AUG '08 SEP '08 OCT '08 NOV '08 DEC '08 JAN '09 FEB '09 MAR '09 APR '09 MAY '09 JUN '09 JUL '09 AUG '09 SEP '09 OCT '09 NOV '09 DEC '09 JAN '10 FEB '10 MAR '10 APR '10 Feature Phone Smartphone T2 159 152 141 106 145 143 124 110 112 113 117 115 126 129 134 122 122 125 128 125 126 125 117 125 143 312 255 211 163 197 191 214 202 190 157 153 212 325 342 304 155 179 250 268 251 276 276 233 243 300 339 332 226 155 206 186 198 197 211 222 220 235 254 238 229 207 214 202 205 209 201 184 168 179 192 Volume Market Share – New Acquirers Average Price – México (USD) Media phones are also a growing phenomena (e.g. growing faster than smartphones in Mexico) Mexico Data
- 12. 12 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Marketers are realizing that devices’ form and features drive data adoption and consumption, more than consumer factors
- 13. 13 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Data Applications Used in the Past 30 Days Acquired Device in the Past 6 Months (n=12,650) Questions used: Q407 Source: Nielsen Mobile Insights, US, Q2 2010 88% 80% 80% 69% 58% 54% 42% 40% 40% 39% 39% 37% 36% 31% 30% 30% 21% 20% 20% 14% 6% 3% 69% 17% 22% 11% 40% 8% 10% 18% 16% 14% 7% 4% 11% 19% 12% 5% 5% 5% 9% 3% 1% 24% Text messaging/SMS Email Mobile internet Application (App) downloads Picture messaging/MMS Location-based Services Content uploads Pre-installed games Text alerts Picture downloads Game downloads Streaming audio Instant messaging Ringtone downloads Wallpaper/Screensaver downloads Mobile video Mobile commerce Full-track music downloads Video messaging Online games VoIP No mobile activities Smartphone Feature phone Data applications usage amongst Smartphone users far outstrip feature phones. 80% use the mobile Internet and e-mail. USA Data
- 14. 14 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Some Smartphone strategies across SEA • Singapore – Singtel and Starhub have reported sharp increases in data traffic in 2009 and 2010. – In 1Q10, all of SingTel's promotions were for smartphones. – 80% of the models that StarHub and M1 stocks for their online customers are Smartphones. Most (inc. iPhone) are free with data plans. • Indonesia – Telkomsel reported 3x more data in 2009 than 2008. XL Axiata reported 2x growth. – Blackberrys have gained a huge following, especially amongst youths and students. Driven by social networking, Blackberry Messenger and affordable data rates (starting from $11 / month). – Network operators are also considering 3G push with generic Chinese brands (20%+ market share), especially as Android makes $200 Smartphones possible.
- 15. 15 Copyright © 2010 The Nielsen Company. Confidential and proprietary. A focus on Smartphone and media phones make sense even in pre- paid heavy markets 62 87 34 56 41 58 84 30 55 62 UK Italy France Germany Spain Prepaid % - Q1 2008 Prepaid % - Q1 2010 Share of prepaid in EFIGS (2008 – 2010) Europe Data
- 16. 16 Copyright © 2010 The Nielsen Company. Confidential and proprietary. 23% 17% 10% 9% 5% 84% 62% 55% 58% 30% Italy Spain Germany UK France Pre-paid penetration out of all Smartphone users Pre-paid penetration out of all mobile users INDEX: 0.27 0.27 0.18 0.16 0.17 Prepaid Amongst Smartphone Users Base of Smartphone users: Italy (n=1,536, Spain (n=2,530), Germany (n=713), UK (n=1,608), France (n=1,865) Source: Wireless Intelligence & Nielsen Mobile Insights Q1 2010 There is a higher propensity for pre-paid users to use Smartphones in Italy and Spain Europe Data
- 17. 17 Copyright © 2010 The Nielsen Company. Confidential and proprietary. In line with this, Spain and Italy’s pre-paid users exhibit the most attractive consumption patterns. Source: Nielsen Mobile Insights, Q1 2010 Last 30 Day Mobile Internet usage, Q1 2010 0.39 0.15 0.36 0.53 0.65 Index Pre- paid to Post-paid 18%7%Germany 26%4%France 36%13%UK 17%9%Spain 20%13%Italy Post-paid users Prepaid users % who used mobile Internet in last 30 Days 2.82.8Telefonica Spain 2.83.6Vodafone Italy 7.87.8T-Mobile Germany 3.33.1Orange France 5.54.8Vodafone UK Postpaid ARPU / Prepaid ARPU: 2010 Postpaid ARPU / Prepaid ARPU: 2008 Operator Pre & post-paid ARPU Europe Data
- 18. 18 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Smartphones and Media Phones must be a key part of 3G strategy. Branded Smartphones are a safe option, but Android makes generic / operator-branded phones worth investigating.
- 19. 19 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Mobile Internet, Video and Apps
- 20. 20 Copyright © 2010 The Nielsen Company. Confidential and proprietary. The mobile applications and internet categories grow while the carrier- billed game and audio businesses collapse 262218 29 35 39 41 44 47 $430 $169 $230 $281 $335 $383 $460 $501 $508 0 12 24 36 48 60 72 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 NumberofApplicationDownloaders(M) $0 $90 $180 $270 $360 $450 $540 TotalRevenue(M) Number of application downloaders Total application revenue Mobile Application Market Q1 2008–Q1 2010 3133 34 32 30 30 28 29 27 $209 $268 $270 $237 $226 $214 $172 $165 $143 0 9 18 27 36 45 54 63 72 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 NumberofAudioDownloaders(M) $0 $60 $120 $180 $240 $300 $360 TotalRevenue(M) Number of audio buyers Total audio revenue Mobile Audio Market Q1 2008–Q1 2010 13 15 17 19 14 13 13 14 13 $103 $152 $180 $185 $164 $158 $156 $131 $119 10 14 18 22 26 30 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 NumberofGameDownloaders(M) $0 $50 $100 $150 $200 $250 TotalRevenue(M) Number of game downloaders Total game revenue Mobile Game Market Q1 2008–Q1 2010 137136137130124 10810295 116 $4,516$4,505 $3,754 $2,930 $2,415 $2,262 $1,806 $1,692 $3,283 0 50 100 150 200 250 300 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 NumberofMobileInternetUniqueSubscribers(M) $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 TotalRevenue(M) Number of unique mobile internet subscribers Total mobile internet revenue Mobile Internet Market Overview Q1 2008–Q1 2010 Note: Subscriber: an individual who paid for the service in the given period. Source: Mobile Media Measurement bill panel and survey analysis. Extrapolation from CTIA and Nielsen Mobile universe estimates Note: Includes prepaid, postpaid, and all carriers. Does not include off-bill. USA Data
- 21. 21 Copyright © 2010 The Nielsen Company. Confidential and proprietary. US Mobile Video Viewers All Mobile Subscribers (Q1 2010 284,529,844; Q1 2010 Mobile Insights n=63,982) Source: Q3 2008-Q1 2010 Mobile Insights & Nielsen Mobile analysis. (In Millions) 10.3 20.2 17.6 15.3 15.7 13.4 11.2 4.9% 5.8% 6.5% 8.8% 7.3% 6.6% 4.6% 0 5 10 15 20 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Mobile Video Viewers Mobile Video Viewer Penetration (of all Mobile Subscribers) Mobile Video Penetration is slowly be steadily increasing USA Data
- 22. 22 Copyright © 2010 The Nielsen Company. Confidential and proprietary. How Viewers Accessed Mobile Video Mobile Video Viewers (n=4,819) Mobile Video viewership by application is exploding while the subscription model languishes 36% 68% 48% 59% 40% 47% 39% 65% Subscription Mobile internet Download clips Applications Q1 2010 Q1 2009 “I paid a subscription fee to access Mobile TV or video clips” “I accessed and viewed Mobile TV or video clips directly from the internet on my cell phone”* “I downloaded and stored video clips from a computer or from other sources onto my cell phone”* “I viewed video clips using an application (for example: MyWaves, VSnax)”* Source: Nielsen Mobile Video Survey, US, Q1 2010 & Q1 2009 Question used: M3811*Response specifies you watched without paying a Mobile TV or Video subscription fee. USA Data
- 23. 23 Copyright © 2010 The Nielsen Company. Confidential and proprietary. •www.sina.com.cn •www.baidu.com •www.google.cn •www.ko.cn •news.sohu.com •www.xiaonei.com •www.3g.cn •www.paojiao.com •www.188bet.com •www.feiku.com •www.google.de •www.studivz.net •www.wer-kennt-wen.de •www.jappy.de •www.schuelervz.net •m.web.de •mobil.spiegel.de •m.gmx.de •www.lokalisten.de •wap.sport1.de Top mobile Internet sites, China Top mobile Internet sites, Germany • Local content is key for driving mobile Internet traffic Popular websites cross over from fixed to mobile
- 24. 24 Copyright © 2010 The Nielsen Company. Confidential and proprietary. 17% 13% 20% 60% 5% 1% 19% 10% 3% 1% 2% 2% 24% 46% 51% 1% 1% 8% 13% 12% 14% 1% 3% 2% 1%1% 4% 18% 47% AT&T Sprint T-Mobile Verizon Blackberry App World Store Apple App Store Palm Application Store Android Market Store Windows Marketplace Store AT&Ts Application Store Sprints Application Store T-Mobiles Application Store Verizons Application Store My cell phone provider’s Application Store Handango website Other Cydia Apps Market Verizon V Cast Apps App Store Most Often Used by Device Type and Operator Base: AT&T (n=1,709), Sprint (n=529), T-Mobile (n=422), Verizon (n=1,238) Source: August 2010 Nielsen App Playbook Even in well regulated USA, operator stores have a big role to play in marketing apps. This trust angle will be even more critical in Vietnam. Source: August 2010 Nielsen App Playbook Questions used: CQ2C1: Which of the following App Stores do you use most often? USA Data Verizon App Store T-Mobile App Store Sprint App Store Apple App Store AT&T App Store
- 25. 25 Copyright © 2010 The Nielsen Company. Confidential and proprietary. In summary: Create an open and dynamic marketplace for applications • Some learnings on App Stores / portals – pricing – allowing free apps into the store and distributing them for free. – allowing developers to charge small amounts for an app (tasters) – games – almost every application in the list of top paid and free apps on the Apple App Store is a game. – showcase applications development as “a chance to make good money” – in the early days this could mean investing money – create buzz and community – open business model, smooth approval process – provide best practice shopping experience – allow bookmarking – recommendation / rating of apps – mark apps already bought by a subscriber
- 26. 26 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Affordable and Inventive Data Pricing
- 27. 27 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Allow “data snacking”, especially for pre-paid users, and free trials RM5 (US$1.3)/ day RM15 (US$4.5)/ week
- 28. 28 Copyright © 2010 The Nielsen Company. Confidential and proprietary. T-Mobile UK (Pre-paid) • T-Mobile is UK’s most successful network for pre-paid data usage. • They offer new subscribers 30 days of free internet • They also offer cheap Mobile Internet boosters £20.00 6 month Internet on your phone £5.00 1 month Internet on your phone £2.505 day Internet on your phone CostBooster Allow “data snacking”, especially for pre-paid users, and free trials…cont’d
- 29. 29 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Avoid AYCE pricing. Small amount of users are consuming the bulk of data traffic for US carriers; between 2009 and 2010 their consumption doubled. Source: Nielsen Customer Value Metrics Q1‘09 – Q1‘10
- 30. As traffic picks up look into Dynamic Data Pricing Variable discounts depending on location and traffic. Alerts on available discounts sent to users’ phones in the form of a “ticker”
- 31. 31 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Have a good selection of free applications to promote adoption and create an apps culture. *Caution: Small base size Mix of Free versus Paid Downloads by Operating System Past 30 Day App Downloaders Questions used: CQ3 How many downloads, free or paid for, have you done in the past 30 days? Wave 2 Base: Feature Phone (n=1,965), Smartphone (n=2,300), BlackBerry (n=623), Microsoft Windows Mobile (n=292), Apple iPhone OS (n=959), Android OS (n=338) Source: August 2010 Nielsen App Playbook 7% 8% 13% 8% 3% 62% 69% 74% 50% 67% 80% 21% 23% 17% 37% 25% 17% 17% Feature Phone Smartphone BlackBerry MS Windows Mobile Apple iPhone OS Android OS Downloaded a Paid App Only in the Past 30 Days Downloaded a Free App Only in the Past 30 Days Downloaded Both a Paid and a Free App in the Past 30 Days USA Data
- 32. 32 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Marketing a 3G Lifestyle
- 33. 33 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Targeting youths - O2 UK (& Germany) • 149 performances by 60 acts including some of the world’s top music artists have played The O2 Arena. • Concerts in 2010 – More than 30 concerts already planned for next year including Bon Jovi, Lady Gaga, Michael Buble, Alicia Keys, Rod Stewart etc. – O2 customers get priority for concert tickets • O2 has also supported events such as the 'NME Rock 'n' Roll Riot Tour', The O2 Wireless Festivals, Party in the Parks and opera events across the UK and Germany. • O2 Bubble – British Music Experience - Interactive audio visual spaces that explore great British music moments throughout history – Record yourself singing, mixing, playing guitar, keyboard or drums – Education programs for youths aged 14 - 19
- 34. 34 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Target youths – Celcom Xpax • Celcom Xpax, a 3G prepaid service was introduced in 2005 to spur the usage of 3G, especially due to the fact that 80% of Celcom's business comes from prepaid segment • Contests, free concerts tickets, VIP passes for events, parties, international music fests • Monthly bonus, bonus during birthdays • Download the best and latest games, music and graphics exclusively from Channel X! With more than 10,000 FREE downloads • Blackberry prepaid: Unlimited BBM at only 50 cents a day • Enjoy FREE Windows Live Mobile • Unlimited Facebook SMS for RM 1 a week
- 35. 35 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Example of Consumer Segmentation Based on Mobile Data Usage (USA) Young Utilitarians Young adults belonging to middle income households, High messaging and moderate browsing usage. Middle Class Rationalists Relatively older in age, belonging to middle income households, primarily voice and text users Retired Voice Callers Retired from work, belonging to middle to lower income households, primarily voice users Engaged Teenagers Teenagers from middle class households, heavily into messaging and moderate browsing and downloading usage Young Smartphone Addicts Young working adults from middle income households, heavy browsing and downloading activities Senior Basic Followers Older in age, not regularly employed, belonging to lower income households, primarily voice and messaging users Ambitious Transients Young adults from lower income HHs, in between education and work. Heavy messaging & moderate browsing. Affluent Smartphone Adopters Older and working, from High income households. High browsing and moderate downloading activities 28.0% 19.1% 15.8% 14.7% 6.9% 6.3% 6.1% 3.2% - - 7.1% 20.1% 100% - 21.9% 100%
- 36. 36 Copyright © 2010 The Nielsen Company. Confidential and proprietary. Example of Consumer Segmentation Based on Mobile Data Usage (USA) … cont’d Page 36 TALKINGTALKINGTALKINGTALKINGTALKINGTALKINGTALKINGTALKING MESSAGINGMESSAGING BROWSINGBROWSING DOWNLOADINGDOWNLOADING Young Smartphone Addicts Affluent Smartphone Adopters Engaged Teenagers Ambitious Transients Young Utilitarians Middle Class Rationalists Senior Basic Followers Retired Voice Callers
- 37. 37 Copyright © 2010 The Nielsen Company. Confidential and proprietary. By understanding each segment’s… Current Mobile Data Usage Lifestage and Life Priorities Willingness to Pay and Trade-Offs Mobile Data and Device Aspirations … creating the perfect 3G package will be easy. Current Digital Lifestyle
- 38. Thank You