Vietnam's Telecom Market Growth Driven by Young Demographics
Published on: 24th Jul 2013
Note -- this news article is more than a year old.
Thanks to Vietnam's relatively young demographics 70 percent of the population is younger than 35 years old the proliferation of data service enabled feature phones and smartphones data services both mobile data and fixed broadband together with pay TV will act as growth engines going forward to 2017 according to a new report from Pyramid Research.
"Vietnam is among the more populated markets in Asia-Pacific, and with its young population, has substantial growth potential," says Pyramid Research Analyst, Hansang He.
Pyramid Research expects mobile data, fixed data and pay-TV to expand revenue at CAGRs of 9.5 percent, 7.9 percent and 13.5 percent, respectively, together contributing 44 percent of overall service revenue in 2017, up from 33 percent in 2012. As mobile browsing becomes part of people's daily routine and data-enabled devices become more affordable, for instance through Viettel's $50 smartphone, mobile data will contribute 48 percent and 33 percent to total data and total mobile revenue in 2017.
Pay-TV subscriptions are expected to rise by nearly 100 percent to 11 million in 2017, up from 5.6 million in 2012, exhibiting the fastest growth among all service segments over the forecast period, propelling its share in the revenue mix from 3 percent to 5 percent.
"Operators are looking at niche segments to expand their subscription bases," says He. "Viettel targeted ethnic minorities, whose population totals 12 million, with ethnic language support and services, while MobiFone launched children packages that join payment with parents' MobiFone accounts," he explains.