ERICSSON: SMARTPHONE SUBSCRIPTION PENETRATION IN VIETNAM EXPECTED TO MORE THAN TRIPLE BY 2021

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·       Vietnam is expected to witness one of the largest growth in mobile broadband subscription penetration in the Southeast Asia together with Myanmar, Indonesia and Philippines, by 2021.

·       Smartphone subscription penetration is estimated to increase by more than three times by 2021 in Vietnam.

·       WCDMA/HSPA networks still play an important role in all operators network. Further enhancements of WCDMA/HSPA network in combination with establishment of LTE services will be needed.

The latest edition of the Ericsson (NASDAQ:ERIC) Mobility Report and the South East Asia and Oceania report, highlights mobile network coverage and network performance; along with mobile subscriber and mobile traffic growth, revealing smartphone subscription penetration to more than triple by 2021 in Vietnam from 30 percent in 2015.

At the end of 2015, mobile subscription penetration reached almost 150 percent in Vietnam while mobile broadband subscription penetration was close to 40 percent. Vietnam is expected to witness one of the largest growth in mobile broadband subscription penetration in Southeast Asia together with Myanmar, Indonesia, Philippines and Bangladesh by 2021.

Ericsson ConsumerLab analysis based on face-to-face interviews reveals that 3 out of 10 smartphone and weekly Internet users in Vietnam are using all these key application categories on a daily basis: social networking, instant messaging and social videos (free online videos or videos on social media). When looking at each application category, more than 70 percent of the survey respondents are using social networking, more than 50 percent using instant messaging and more than 40 percent using free online videos or videos in social media on a daily basis.

Jan Wassenius, Head of Ericsson Vietnam and Myanmar says “With a view to monetizing mobile data services growth, operators need an environment that enables agility in service creation, delivery and management, with fast launch of a much broader range of innovative products. Innovation comes through an ecosystem of partners, suppliers, and application developers that can readily access an operator’s environment to assemble a wide range of new personalized digital services. A Service Innovation Framework is critical to provide an open platform for the operator and its partners to address the needs of vertical industry value chains, Software Defined Networking (SDN) and cloud services, to manage and monetize the proliferation of connected devices.”

In Vietnam, 3G/HSPA networks still play an important role in all operators network and will carry the majority of the traffic. Further enhancements of 3G network in combination with establishment of 4G/LTE services will be needed. Especially in high density areas, combining 3G/HSPA and LTE on a multi-standard RAN would give by far the most efficient network.

”With the roll out of 4G/LTE network in Vietnam, we expect to see more mobile data services being used. Services such as social networking and video streaming will continue to grow as Vietnamese continue to embrace the benefit of data connectivity.” Jan adds.

   

NOTES TO EDITORS

The full Ericsson Mobility Report, Traffic Exploration Tool and regional reports for South East Asia & Oceania, North East Asia, North America and India can be downloaded at www.ericsson.com/mobility-report