Retail News CRM

Category: Telecom

Retail News Asia is committed to providing both local and global retailers with the latest Telecom & Telco news throughout the Asian market. This on a daily base.

  • Astro Malaysia Q2 earnings fall 93%

    Astro Malaysia Q2 earnings fall 93%

    Astro Malaysia Holdings Bhd’s net profit for the second quarter ended July 31 fell 93% to RM16.58 million from RM246.34 million a year ago due to an increase in FIFA World Cup content, merchandise sales and higher net finance costs.

    The decrease in earnings before interest, tax, depreciation and amortisation (ebitda) was mainly due to higher content costs from FIFA World Cup and merchandise sales, while higher net finance cost was mainly due to unfavourable unrealised forex movement arising from unhedged finance lease liabilities and vendor financing and increase in interest expenses from borrowings.

    Revenue for the quarter of RM1.42 billion was marginally lower by 0.2% mainly due to a decrease in subscription and advertising revenue.

    For the six months period, net profit plunged 57% to RM191.31 million from RM442.17 million mainly a year ago due to decrease in ebitda and increase in net finance costs.

    Revenue for the current period of RM2.73 billion was lower by 0.7% against corresponding period of RM2.75 billion, mainly due to a decrease in subscription and advertising revenue.

    The board of directors declared a second interim single-tier dividend of 2.5 sen per ordinary share in respect of the financial year ending Jan 31, 2019 amounting to RM130.35 million.

    Astro chairman Tun Zaki Azmi said Astro continues to be cash generative, cost disciplined and proactive in its capital management whilst navigating through a challenging market and competitive media environment.

    Astro CEO Henry Tan said it experienced increased content costs for the 2018 FIFA World Cup. In addition, financial results were affected by the reduced need to advertise during the tax holiday period from June 1 to Aug 31, 2018 and the depreciating ringgit.

    Nevertheless, it continues to have stable revenues across TV and radio with diversification from digital platforms, e-commerce, licensing income and theatrical sales.

    “Going forward, we expect the group’s second half performance to improve and we will remain focused on key business drivers. Astro is committed to improving customer experience beginning with a new interface for premium customers on TV and Astro GO allowing for a seamless viewing experience across all screens and the introduction of 4K Ultra HD offerings,” said Tan.

    Lees ook:

  • Axiata Malaysia evaluating options on stake in M1

    Axiata Malaysia evaluating options on stake in M1

    Axiata Group Bhd, which is evaluating its options on a possible buyout offer by two of M1 Ltd’s major shareholders Keppel Corp Ltd (KCL) and Singapore Press Holdings (SPH), is hoping for accurate future value for its 28.7% interest in M1.

    News reports in Singapore cited that both companies are planning to launch a general offer for shares they do not own in M1. The deal is expected to fetch a market value of S$1.51 billion (RM4.6 billion).

    KCL and SPH hold 19.3% and 13.5% stake in M1, respectively.

    In a statement released today, Axiata said any transaction involving M1 stake should reflect its accurate future value as well as incorporate acceptable control premium based on market norms and precedent transactions of similar nature.

    Axiata said the group is currently reviewing its position in view of a possible transaction to be further announced by KCL and SPH on its M1 shares.

    “The company is already in discussion with a financial institution to act as its adviser to review various options available to Axiata with the sole objective that the company continues to vigorously protect and enhance shareholders’ value of both Axiata and M1, the latter via its board representation.”

    “The financial institution will also advise the company once KCL and SPH officially announce their proposed transaction,” it added.

    Axiata’s share price gained 19 sen or 4.2% to close at RM4.75 today with 3.02 million shares changing hands.

  • Viettel Global to list 2.24 billion plus shares

    Viettel Global to list 2.24 billion plus shares

    More than 2.24 billion Viettel Global shares will make their debut on Hanoi’s unlisted public company market, UPCoM, on Tuesday.

    The shares of Viettel Global Investment Joint Stock Company, with the sticker VGI, will be traded on the UPCoM at a floor price of VND15,000 ($0.65) per unit.

    Viettel Global will become the largest firm on the UPCoM with market capitalization of VND33.6 trillion ($1.44 billion).

    Established in late 2007 with chartered capital of VND960 billion ($41.18 million) as a unit of Viettel Group, Viettel Global covers the military group’s overseas investments.

    Viettel Group holds 98.68 percent of the stake in Viettel Global.

    At a general meeting in June, shareholders of Viettel Global approved a plan to increase its chartered capital to VND30.4 trillion ($1.3 billion).

    In 2017, Viettel Global served nearly 40 million international customers, a growth of 13 percent from the previous year.

    To date, Viettel Global makes profits in eight of the ten markets that it operates in. The eight markets are Cambodia, Laos, Timor Leste, Mozambique, Burundi, Haiti, Peru, and Cameroon. It entered Tanzania two years ago and Myanmar just this month.

    Viettel Global plans to enter several new markets, mainly in ASEAN.

    For this year, the company targets increasing its subscriber numbers by 10-15 per cent, bringing the cumulative population of its markets to 400 – 500 million and rank among the top 10 global telecom companies.

    Viettel Global announced consolidated revenues of over VND19 trillion ($810 million) for 2017, an increase of 24 per cent year-on-year, and a net profit of VND27 billion ($1.16 million).

    Lees ook:

  • Axiata’s share price dip after edotco cancels Pakistan deal

    Axiata’s share price dip after edotco cancels Pakistan deal

    Axiata Group Bhd’s share price fell as much as 11 sen this morning after its subsidiary edotco Group Sdn Bhd canceled a US$940 million deal in Pakistan.

    The stock fell as much as 11 sen to a low of RM4.50 this morning from its last adjusted closing price of RM4.61. At 11.06am, the stock fell 1.3% or 6 sen to RM4.55 with 584,700 shares traded.

    Trading in Axiata’s securities was halted for an hour from 9am earlier before resuming at 10am.

    On Monday, edotco said it will not go ahead with the acquisition of 13,000 towers from Pakistan Mobile Communications Ltd, which would have made it the eight largest independent tower company globally.

    The US$940 million (RM3.9 billion) deal, which was in the works for more than a year, was terminated due to the non-fulfilment of a number of conditions within the timeframe stipulated under the sale and purchase agreement.

    Lees ook:

    Lees ook:

    Lees ook:

  • SK Telecom cranks up speed of WiFi by four times

    SK Telecom cranks up speed of WiFi by four times

    SK Telecom said Monday it commercialized a next-generation WiFi service that is four times faster than existing services at key areas with dense traffic, including COEX in southern Seoul.

    The new technology offers a maximum of 4.8 gigabits per second (Gbps) data speeds, which is about four times faster than the WiFi service commercialized in 2013, according to the mobile carrier.

    The new “T WiFi AX” uses four antennas to transmit and receive radio waves and works on 160 megahertz bandwidth, twice as large as the bandwidth used by the existing WiFi services, according to SK Telecom. Broader bandwidth translates to faster data speeds just as eight-lane highways are better at relieving traffic congestion than four-lane highways. The bandwidth is spread across 2.4 gigahertz and 5 gigahertz bands.

    The mobile carrier also cooperated with fixed-line service operator SK Broadband to offer network stability even in crowded areas.

    Currently, SK Telecom has the new WiFi service operating in busy areas like COEX in Samseong-dong and U-Square, a large bus terminal in Gwangju. The mobile carrier said it will keep expanding services for nationwide coverage.

    Customers, however, will not be feel a dramatic increase in data speeds with their existing smartphones, according to the mobile carrier.

    “The WiFi service is built on a 802.11.ax standard set by the Institute of Electrical and Electronics Engineers but smartphones in the market do not carry chips that meet that standard yet,” a spokesperson from SK Telecom said. “Phones released next year will carry chips that let users experience 1.2 Gbps data speeds.”

    According to data from SK Telecom, the maximum data speeds for smartphones on WiFi connections until now was 866 megabits per second, and the speeds will continue to increase following upgrades in smartphone hardware.

    The mobile carrier developed the technology last October. After test operations in various traffic scenarios, its technology and network equipment was approved for deployment by the Ministry of Science and ICT last month.

    Lees ook:

  • Celcom Axiata’s Sabah customers to enjoy 100Mbps internet speed

    Celcom Axiata’s Sabah customers to enjoy 100Mbps internet speed

    Celcom Axiata Bhd will be gradually upgrading the internet speed of its existing Celcom Home Fibre customers in Sabah to 100 megabits per second (Mbps) until the end of September 2018 at lower prices or no cost at all.

    From Sept 16 onwards, in conjunction with Malaysia Day, the Celcom Home Fibre™ and Celcom Business Fibre™ plans will be available with internet speeds of up to 100Mbps at half the price.

    This is in line with the government’s call for nationwide high-speed broadband accessibility at affordable prices.

    Customers who are currently subscribed to the Home Fibre™120 package will see the speed of their internet increase by 10 times to 100Mbps at no extra cost.

    As for customers who are subscribed to Home Fibre™ 150 and 180 at 20Mbps and 40Mbps packages respectively, they will be automatically upgraded to internet speeds at a reduced price of only RM120 per month.

    For business owners, Celcom Business Fibre™ Gold Supreme offers unlimited high-speed fibre internet with speeds up to 100Mbps at only RM130 per month, while Celcom Business Fibre™ Gold offers unlimited high-speed fibre internet speeds up to 40Mbps at RM90 per month.

    The Celcom Business Fibre™ also comes together with free installation, a free dect phone and a free wireless router.

    “Celcom is making broadband services more affordable by reducing its Celcom Home Fibre™ and Celcom Business Fibre™ prices by half, while offering more than double the speed for internet, said Celcom’s CEO Mohamad Idham Nawawi in a statement.

    We will continuously work towards expanding our fibre technology and high-speed broadband internet access for businesses and communities in both urban and rural areas, further upholding the government’s agenda for nationwide broadband penetration,” he added.

    He noted that every Malaysian should have the opportunity to be digitally adept and have access to high-speed internet without being burdened financially.

    Celcom’s advanced broadband fibre service for homes and businesses has been enhanced in Sabah to deliver more than double the speed of high-speed internet fibre connection service at affordable prices.

    Lees ook:

    Lees ook:

  • U Mobile inks RM1 billion credit facility with UOB Malaysia

    U Mobile inks RM1 billion credit facility with UOB Malaysia

    U Mobile Sdn Bhd has inked a three-year RM1 billion term loan credit facility with United Overseas Bank (Malaysia) Bhd (UOB Malaysia) to fund its various capital expenditure programmes, including the company’s network expansion and enhancement goals across the country.

    U Mobile CEO Wong Heang Tuck said the RM1 billion credit facility agreement is one of the largest to be signed in this country to date and this reflects the bank’s vote of confidence in U Mobile’s credit quality and business fundamentals.

    “The fresh injection also means we are able to expedite our network strategy and customers will soon enjoy much better experience throughout the whole of Malaysia.”

    He added that the agreement, apart from enabling U Mobile to build a financial track record, affirms the company’s position as a credible challenger in the telco landscape.

    Over the past few years, the company has enjoyed traction in the industry and its subscriber base crossed the 6 million mark at the end of last year.

    U Mobile’s rising popularity in Malaysia also enabled the telco to become ebitda (earnings before interest, tax, depreciation & amortisation) positive mid last year, highlighting the company’s improving financial health.

    As at Dec 31, 2017, U Mobile’s shareholders have invested over RM4 billion in the business. With the RM1 billion loan from the commercial bank, U Mobile would be investing over RM5 billion in its network infrastructure, aggressively expanding its network footprint nationwide as well as enhancing customers’ mobile experience.

    The investment will also accelerate the telco’s growth ambitions, reinforcing its position as a serious industry contender. The network infrastructure upgrade is also a critical foundation to U Mobile’s expanding suite of mobile digital services, which spans from telco-assurance to payments.

  • Celcom Axiata appoints Idham Nawawi as new CEO

    Celcom Axiata appoints Idham Nawawi as new CEO

    Celcom Axiata Bhd has appointed Mohamad Idham Nawawi (pix) as its new CEO effective Sept 1, taking over the reins from Michael Kuehner whose tenure ends on Aug 31.

    The group said in a statement that the succession is part of the original plan two years ago to appoint an internal talent for its next phase of transformation and Idham was appointed following a thorough selection process.

    “As an internal talent with excellent management and operational experience within the group, as well as a member of the Celcom board, Idham is already well versed in Celcom’s strategic directions, operations and challenges. The board is confident Idham will be able to move quickly and efficiently to execute on the next phase of transformation,” it said.

    Idham has been with the group since 2012 and is currently the group chief corporate officer, responsible for regulatory management, corporate communications and sustainability, corporate affairs and government relations for the group. He also manages the group CEO’s office and the Axiata programme and governance office.

    Idham led the transformation programme office for Axiata 2.0 from 2012 to 2015, which was the impetus of Axiata’s expansion beyond its core mobile business into new digital services and tower business.

    As interim COO for Axiata Digital Services during its start-up phase in 2014, he was also instrumental in establishing the RM100 million Axiata Digital Innovation Fund targeted at developing Malaysian digital entrepreneurs.

    Idham has served as member of the board of directors in Axiata’s mobile operating companies in Malaysia, Cambodia, Bangladesh and Pakistan, and several Axiata Digital Services companies.

    Prior to joining Axiata, Idham was COO of Packet-One Networks (P1). He was previously head of strategy for Axis Telekom Indonesia and general manager at Maxis Communications Bhd, and had spent his early career with IBM Malaysia and Carl Zeis Inc in the USA.

    “We are pleased to welcome Idham as Celcom CEO. With his vast leadership and notable accomplishments in many roles, I am confident he will lead Celcom to the next level of transformation into a digital world as well as to pursue our profitable growth strategy. His decades of industry experience and familiarity of Celcom, being already a board member, will certainly help him to move quickly in the transition,” said Celcom chairman and Axiata president and group CEO Tan Sri Jamaludin Ibrahim.

    “At the same time, on behalf of the board of directors of Celcom and all of us, I would also like to take this opportunity to extend our gratitude to Michael for his immense contributions and for positioning Celcom solidly for the great opportunities ahead. We wish him all the best in his future endeavors,” he added.

    Kuehner, who took over from Datuk Seri Shazalli Ramly in September 2016, was previously the CEO of Robi Axiata Ltd in Bangladesh from 2009 till 2013.

    The group said his core strategy to provide the best customer experience in the industry saw Celcom achieve significant improvements in many areas in products and services, network quality and coverage especially in the deployment of 4G, sales and distribution as well as digitisation.

    Lees ook:

    Lees ook:

    Lees ook:

  • Vietnam telecom firm Viettel eyes Philippine market

    Vietnam telecom firm Viettel eyes Philippine market

    Vietnamese telecommunication company Viettel has set its sights on the Philippines as the next destination in its overseas expansion drive.

    The company said on Thursday, as the archipelago’s economy clears the way for the entry of a third operator.

    Fixing the Philippines’ notoriously patchy and expensive telecom services was a campaign promise of populist President Rodrigo Duterte, who had said late last year that a third player would join the market and end the duopoly of PLDT Inc and Globe Telecom Inc, which have a combined market capital of about $10.7 billion.

    “Viettel is interested in the third license on telecommunications in this market,” the military-run Viettel Group, Vietnam’s largest mobile carrier by subscription numbers, said.

    “Viettel will thoroughly consider participating in case the conditions of the bidding documents are in line with the strategy of Viettel.”

    The Philippines’ Department of Information and Communications Technology (ICT) issued draft rules this month on the entry of a third player, which require foreigners to team up with local partners holding congressional franchises.

    Foreign ownership of a telecom firm in the Philippines is capped at 40 percent, although Eliseo Rio, the acting ICT head, said in a recent interview that moves were underway to change that, so foreigners can raise their stakes later on.

    The Philippines has one of the world’s largest rates of average daily social media usage, yet insufficient infrastructure means its 105 million people suffer frequent dropped calls, weak signals and intermittent data.

    Viettel has already invested in 10 countries across Asia, Africa and America, and had 43 million subscribers overseas, as of end-2017.

    Last month, a Viettel official said the company was also eyeing opportunities in Ethiopia after the government there announced its intention to liberalise key economic sectors including telecommunications.

    In June, Viettel and its local partners launched a $1.5 billion 4G network in Myanmar, making them the fourth telecom operator in the country.

    Lees ook:

    Lees ook:

  • MobiFone gets new CEO

    MobiFone gets new CEO

    MobiFone has named deputy general director Nguyen Dang Nguyen as its new CEO in place of the disgraced Cao Duy Hai.

    Hai, 57, was removed last Tuesday for his role in the illegal acquisition of a TV firm in 2016 by the Ministry of Information and Communications, which runs the corporation.

    Nguyen also remains deputy general director in charge of technology area.

    Hai has also been sacked from the company’s board after being found responsible for “serious violations” in the acquisition of private pay TV firm Audio Visual Global JSC (AVG).

    According to the Central Inspection Commission of the Communist Party of Vietnam, Hai had been personally involved in the acquisition and signed many documents in violation of laws to come up with a deal that caused a significant loss to the government.

    MobiFone had made headlines in 2016 when it announced it was breaking into the pay TV market with the acquisition of a 95 percent stake in AVG.

    But the Government Inspectorate concluded the deal, which had not been approved by the government, had violated investment laws and caused an estimated VND7 trillion ($307 million) loss to the government.

    In a report on the deal last March inspectors said MobiFone had committed multiple violations in proposing the deal and AVG’s valuation.

    The ministry and MobiFone were responsible for the serious violations of the laws in assessing, approving and going ahead with the deal, the inspectorate said.

    MobiFone’s after tax profit dropped 26 percent year-on-year to VND1.95 trillion ($86.6 million) in the first half of this year as revenues fell 8 percent to VND14.7 trillion ($653.3 million).

    But the country’s third largest telco has said with the new CEO taking over it expects to achieve the full year’s financial targets.

    Lees ook:

    Lees ook:

  • KT korea to offer discount SIMs to tourists

    KT korea to offer discount SIMs to tourists

    KT, Korea’s second-biggest wireless services provider, said Friday it will provide discounts on SIM cards and WiFi services to foreigners visiting the country.

    Foreign travelers can receive a discount of up to 50 percent on KT’s mobile roaming services when ordering from the company’s English website by the end of this year, KT said.

    The SIM cards can be purchased at the KT’s roaming centers at Incheon International Airport, Gimpo International Airport, Gimhae International Airport and Busan International Port.

    Lees ook:

    Lees ook:

  • Net1 Indonesia Quick Response on the Lombok Earthquake

    Net1 Indonesia Quick Response on the Lombok Earthquake

    Net1 Indonesia is quick responding towards the earthquake in Lombok Island, West Nusa Tenggara (NTB) by providing Free WiFi access for refugees in evacuation area. To implement the social action, Net1 Indonesia collaborates with Communications and Informatics Office (Kominfo) of Province West Nusa Tenggara. Net1 has donated 100 WiFi devices to the office to be distributed and installed in several evacuation areas.

    This caring action is part of Net1 Indonesia’s Corporate Social Responsibility (CSR) to relieve the burden of victims affected by the Lombok earthquake, which killed 113 people, injured 236 people and thousands others homeless caused of severe damage. Until Tuesday (8/8), aftershocks still occurred after the earthquake with a magnitude of 7 hit Lombok Island, West Nusa Tenggara, on Sunday (5/8).

    “We received information from our area team in West Nusa Tenggara that telecommunication access was down, while many people were still looking for their family members. Telecommunications access will facilitate people and their families to communicate and update each other on their conditions,” said Larry Ridwan, CEO of Net1 Indonesia.

    With the support of telecommunication access and internet from Net1, shelters around the disaster area can be an information hub to update informations related to the disaster, including the possibility to find people who separated from their family. The WiFi devices installation in the shelters is possible to be extended based on situation and condition in the natural disaster area.

    “We will distribute the one hundred devices to 48 sub-districts in Mataram City, and in the districts including North Lombok, Central Lombok, West Lombok and East Lombok. So far, the worst damage occurs in North Lombok with 78 death toll. We are excited since Net1 is very quick responding to fulfill the need of telecommunication and internet access. Telecommunication access in Lombok and its surrounding was down when people urgently need to contact and update their conditions to family and relatives,” revealed Tri Budiprayitno, Head of Kominfo Office in West Nusa Tenggara Province.

    “We hope this disaster will pass soon, so people can recover and resume to their activities,” Larry added.

    Because of the magnitude of the earthquake, a number of telecommunication infrastructure in Lombok damaged, but the damage did not affect the network and range of Net1 Indonesia 4G LTE. Net1 Indonesia’s networks and signals are normally operating at 450MHz frequency to provide adequate telecommunications access for its customers and victims.

    Net1 Indonesia also encourages Sentra Net1 which spreaded across Bali and Lombok Island to play an active role in providing technical repair if there are customers’ devices damaged because of earthquake. Please visit net1.co.id for more information.

    Lees ook:

  • Elon Musk’s SpaceX Helps Keep Costs Down on Launch of Telkom’s Merah Putih Satellite

    Elon Musk’s SpaceX Helps Keep Costs Down on Launch of Telkom’s Merah Putih Satellite

    Telkom Indonesia, the country’s largest telecommunications company, will save up to a quarter of the cost involved in the launch of its latest satellite through reusable rocket technology.

    The Merah Putih satellite cost $165 million to develop, launch and insure against launch failure, Zulhelfi Abidin, Telkom’s network and information technology solutions director, said on Sunday (05/08). In comparison, Telkom-3S satellite, launched on Feb. 15, 2016, cost Telkom $215 million.

    Bank Rakyat Indonesia’s 2016 BRIsat project – the world’s first satellite owned and operated by a bank – cost the state-owned lender $250 million to develop and launch, by Europe’s Arianespace.

    Telkom contracted billionaire Elon Musk’s Space Exploration Technologies Corporation, better known as SpaceX, for the Merah Putih launch. The satellite will hitch a ride on SpaceX’s Falcon 9 rocket, which can be reused up to 10 times.

    “The process of combining the rocket with the satellite is already completed, so all that’s left is to wait for the launch,” Zulhelfi said.

    The satellite will be launched from Cape Canaveral Air Force Station in Orlando, Florida, on Tuesday.

    Telkom hopes Merah Putih will help it provide extended communication services across Indonesia, particularly in the country’s remote and outermost regions. The company also hopes to use the satellite to increase its business opportunities in South Asia.

    Lees ook:

    Lees ook:

    Lees ook:

    Lees ook:

  • SK Broadband adds home screens to TV

    SK Broadband adds home screens to TV

    SK Broadband will launch customizable home screens for all of its 4.6 million TV subscribers on Aug. 16.

    SK Broadband unveiled a series of upgraded TV media services on Tuesday and vowed to increase its offerings of customized content.

    “Paid broadcasting services are supposed to analyze the data of customers’ media consumption trends to come up with the services and content that suit them,” said Yoon Suk-am, head of the media business division at SK Broadband at a press conference at SK Telecom’s headquarters in central Seoul. “It will be the first step in raising customer value further.”

    Users may choose among three options to set their home screen, which appears right after the TV is turned on – video on demand, a real-time TV channel or a kids’ channel that consists only of content for children. Baseball aficionados, for example, can set a baseball channel as their home screen.

    The screen can also recommend content according to age group and based on the past user’s viewing habits, including their favorite TV programs from the past five years. The screen will also show which monthly plan users are subscribed to, valid membership points, coupons and discounts.

    SK Broadband said its mobile video streaming app, Oksusu, will offer real-time baseball broadcasts that are up to 20 seconds faster than competing apps.

    For children, SK Broadband will offer a custom fairy tale maker to TV subscribers. Kids can add their own voice, face and drawings to a TV screen to make their own TV fairy tale content, using 3D facial recognition technology and real-time facial expression generation technology. Some 250 fairy tales will be available for customization.

    When viewers take a photo of their face with a smartphone app and send it to the TV, the photo’s facial expression will take on up to 20 different emotions depending on the flow of the story. Viewers may even turn into the antagonist of one of the fairy tales. Children may also draw paintings that are added to the story and affect its outcome.

    Lees ook:

    Lees ook:

  • Soaring 3G, 4G use to boost mobile ads, commerce

    Soaring 3G, 4G use to boost mobile ads, commerce

    Widespread adoption of 3G and 4G networks in Vietnam presents a lucrative growth opportunity for mobile advertising and commerce.

    Vietnam had more than 123.9 million mobile subscribers active on 2G, 3G and 4G networks as of June this year, according to the Ministry of Information and Communications.

    The number of 3G and 4G subscribers had soared by 29.2 percent year-on-year. Preliminary statistics showed that the combined adoption of 3G and 4G reached 51.5 million subscribers in early 2018.

    Mantosh Malhotra, Southeast Asia and Pacific head of telecom equipment giant Qualcomm, said the growth was impressive and predicted 3G and 4G numbers to rise to 120 million by 2020, or 67 percent of all mobile devices.

    Doan Duy Khoa, head of consumer insight, banking and technology industry division at Nielsen Vietnam, said that the extensive 3G and 4G adoption in Vietnam would create huge opportunities for mobile advertising and commerce.

    Vietnam is ranked third in consumers’ internet access in Southeast Asia, behind only Singapore and the Philippines, he said. “Vietnamese spend 24.7 hours a week on average on the internet compared to nearly 26 hours in developed countries like Singapore.”

    Two-thirds of local internet users surveyed by Nielsen said they regularly use smartphones to browse the net.

    Khoa said this trend has been fostered by the upgrades to the 3G and 4G telecom infrastructure and the increasing mobile connection speeds on smartphones.

    By 2020 some 60 percent of Vietnam’s population is expected to use smartphones.

    Khoa quoted statistics from market research company eMarketer as saying Vietnam’s mobile advertising revenues were worth $77 million last year, double that of the previous year.

    He presumed the growth is on the rise.

    Mobile advertising growth would be driven by new ad formats like in-app ads, mobile video ads and mobile search services, Khoa said. “The rising trends of connectivity and smartphone use also give impetus to mobile commerce growth.”

    Smartphones inspire consumers to search online for brands, products and services before buying, and share their impressions after a purchase, he said.

    Khoa recommended that marketers should use smartphones as a tool to build brands and loyalty programs and promote sales. “Many providers of air, accommodation, and tourism services are leading the mobile commerce charge in Vietnam.”

    eMarketer predicted the mobile retail sector to grow by 24.3 percent to $1.14 million this year. The figure is expected to climb to $1.8 million in the next three years.

    But Khoa warned that mobile advertising and mobile commerce sectors face challenges since consumers tend to quickly turn off ads or even block and skip them. “Thus, to get past this, the advertising content must be very good.”

    “Consumers’ attention span is very short when it comes to mobile phones, especially compared to tablets and laptops. So, ads must be designed to run for six or 12 seconds instead of the 30 or 60 seconds of traditional ads,” he added.

    Lees ook: