Viettel Group Viettel – at a Glance Telecom Services

6/9/2011

By: Ms. Nguyen Thanh Xuan Chief Strategy Officer – Viettel Group

Viettel – At a glance Telecom services – Bandwidth hunger Digital dividend – How to get best benefit?

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Viettel – At a glance Telecom services – Bandwidth hunger Digital dividend – How to get best benefit?

Telecom Market Entry: 2000

Mobile Market Entry: 2004

Growth (2000 ÷ 2010): • 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)

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Presence: Vietnam Viettel Revenue 2006 - 2010 (million USD) (Viettel), Cambodia

6,000 (Metfone), Lao (Unitel), 5,360 Haiti (Natcom), 5,000 4,000 Mozambique, 3,350 3,000

Peru… 1,941 2,000

975 Full-licensed: Mobile, 1,000 440

Fixed, Internet, - Network Infrastructure Y2006 Y2007 Y2008 Y2009 Y2010

60'000 51'068 47'500 4'500'000 4'266'423 50'000 4'000'000

3'500'000 40'000 28'469 3'000'000 30'000 2'500'000

2'000'000 20'000 11'787 11'787 1'500'000 4'345 10'000 1'000'000 813'986 500'000 225'180289'663333'109 - 4'493 39'940 102'896 -- 000 2006 2007 2008 2009 2010 2004200420052005200520062006200620072007200720082008200820092009200920102010201020112011

Mobile Subscribers (K) Broadband Subscribers

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Largest infrastructure in Indochina. Vietnam: + Coverage: 97% population + 2G: 28,000 BTS + 3G: 20,000 BTS Cambodia: + 2G:3,700 BTS + 3G: 1,300 BTS Lao: + 2G: 1,800 BTS + 3G: 500 BTS

Viettel – At a glance Telecom services – Bandwidth hunger Digital dividend – How to get best benefit?

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Any Where: Coverage (100% population) Any Time: Big Capacity& High Speed Any Body: Packages (From 3 years old) Any Price: Marginal cost (almost 0)

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

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• 2G = 13Kb/s & 5-10 min/day/user 3G = 30Kb/s & 20-30 min/day/user 3G BW=3-5 2G BW (Assumption for 3G: bits/Hz 3 times higher) 3.5G (HSPA) = 1.5 - 3Mb/s 4G (LTE) = 10 – 15Mb/s

Viettel – At a glance Telecom services – Bandwidth hunger Digital dividend – How to get best benefit?

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2011- 2020 470 MHz 694MHz 790MHz 806 MHz

PAL/DVBPAL/DVB----T/DVBT/DVBT/DVB----HHHH TEMPORARY 111ststst Digital 800/900 MHz DVBDVB----T/PALT/PAL Dividend cellular

After 2020 470 MHz 694MHz 790MHz 806 MHz

PAL/DVBPAL/DVB----T/DVBT/DVBT/DVB----HHHH 2nd Digital 111ststst Digital 800/900 MHz Dividend ? Dividend cellular ‼ 13

Benefit for the country: in term of socio- economic impact. Optimize investment for telcos: LTE deployment with 700MHz and 2500 MHz band. Best services for customers.

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Economic benefit: contribute to GDP, increase Subscriber base Social benefit: narrow digital gap between cities and rural areas, improve education and health services.

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CAPEX Rural Coverage Equipment Readiness

Coverage: 2.5 times. CAPEX: 5 times.

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700MHz band: Most economical. For an area of 60km2, population of 52K:

Fixed LTE 700 LTE 2500 No of station 1 5 Fee/household ($) 120 2.4 12

Vendors. Data cards: 65% LTE 700 supported. Handset: 90% LTE 700 supported. Viettel trial.

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Bandwidth: 10 MHz. Download speed: 74 Mb/s. Services: HD TV, HD video call, HD conference.

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