International Roaming

Study on the International Roaming (SMS & Data) Market in ASEAN Final report
Date:
8th January 2011
Prepared by:
2010. Synovate Ltd. All rights reserved. The concepts and ideas submitted to you herein are the intellectual property of Synovate Ltd. They are strictly of confidential nature and are submitted to you under the understanding that they are to be considered by you in the strictest of confidence and that no use shall be made of the said concepts and ideas, including communication to any third party without Synovates express prior consent and/or payment of related professional services fees in full.
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Contents
Section A: Study Background 3 Section B: Study Findings 1. ASEAN overview 2. Country-level findings 2.1. Brunei 2.2. Cambodia 2.3. Malaysia 2.4. Singapore 3. Pricing analysis across ASEAN 4. Recommendations 5. Learning from the EU roaming initiative 20 34 48 62 76 87 90 10
Section C: Appendices Appendix 1. Status of 3G network roll-out across ASEAN Appendix 2. Retail offerings for data roaming Appendix 3. Additional pricing analysis for data roaming 97 99 104
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Project Background
Project background and objectives

Task appreciation
The growth of mobile data usage in Asia has been driven by the advent of 3G and 3.5G services, as well as the increasing prevalence of smart phones in the market place. The increasing importance of data as a emerging growth segment for mobile operators has also been evidenced by the introduction of bundled data roaming pricing plans by regional mobile alliances such as Bridge Alliance and Conexus Mobile Alliance. For example, the Bridge Alliance has recently launched Bridge DataRoam, a capped usage subscription plan which offers a flat-rate pricing structure for data roaming, aimed at delivering greater cost savings and pricing transparency for member users However, the issue of bill-shock is still a key deterrent to data roaming usage. Users may not always be aware of the level of data consumption, and are sometimes caught by hefty phone bills at the end of the month. For example, email and other background applications may trigger large volumes of data downloads without the users knowledge In some cases, high roaming charges may also be due to the pricing structure of the home and visiting operators. For example, the visiting operator may charge the home operator a higher wholesale tariff than what they charge at a retail level to their own customers, while adding to that is the extra mark-up by the home operator on top of these wholesale charges
Study objectives
This is a Phase 2 study following the completion of Phase 1 in November 2009 on international roaming (voice) market in ASEAN The study seeks to better understand the international roaming market for SMS and data in ASEAN, in order to formulate appropriate policies or regulatory interventions to better control data roaming prices. The results of the study should therefore address the following objectives: To ascertain the size of the international roaming market for SMS and mobile data in ASEAN To assess roaming charges across ASEAN countries, in particular, how roaming charges are established between operators in ASEAN; the tariff components of the roaming services; the roaming tariffs charged between ASEAN countries To provide recommendations on possible steps to increase transparency in roaming tariffs, and to lower roaming charges where they are excessive
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Scope of engagement
INDUSTRY SEGMENTS International mobile data roaming services Short Message Services (SMS) Mobile data (including MMS, GPRS, push email, and mobile broad band services) GEOGRAPHICAL COVERAGE Brunei Darussalam Cambodia Philippines Malaysia ASSUMPTIONS IDA to assist in data collection by sending the questionnaire developed by the consultant to the regulators in the respective countries, as well as coordinating with the regulators to obtain required data points The pricing analysis in this study will be mainly based on data provided on the questionnaire submitted by each ASEAN country While checks shall be made by Synovate to ensure the credibility of the data received, the accuracy of the study analysis is subject to the quality of data submitted by the respective countries
Indonesia Lao PDR Myanmar
Singapore Thailand Vietnam
INDUSTRY PLAYERS Mobile operators and Mobile Virtual Network Operators (MVNOs)* in the 10 ASEAN countries
*Coverage of MVNOs will be subject to the presence of sizeable MVNO players in the country
ANALYSIS TIME FRAME Current analysis period 2009 2010 (based on latest information available)
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Information sources
QUESTIONNAIRES SUBMITTED BY ASEAN OPERATORS Data analysis The collection of data for the study analysis was mainly facilitated through the administration of a questionnaire (designed by Synovate) to the respective ASEAN countries As a significant portion of the pricing analysis will be based on the ASEAN network operators roaming data the operators cooperation in the provision of such data was deemed to be critical to the success of this project. The questionnaire dissemination and subsequent follow-up was done via the respective regulatory agencies of each country Only four countries submitted the questionnaire, namely, Brunei Darussalam, Cambodia, Malaysia, and Singapore. Countries which did not submit the questionnaire were Indonesia, Philippines, Thailand, and Vietnam. While, Laos and Myanmar submitted some data, the information was incomplete and was therefore not used in the analysis Thus, Synovate shall present to the best of our abilities, our analysis and recommendations, based on the available information obtained from the submitted questionnaires Other notes For consistency purpose, the currency used in this study will be the US Dollar (USD). The USD values presented in this study were converted from the local currencies by the participants who submitted the questionnaires Pricing information reflected in this report was mostly derived from averaging the data submitted by participating network operators in each country. As such, there may be some degree of variance from the actual market rates, as a result of approximation or averaging during the data analysis process As majority of the data points obtained from the questionnaire were deemed to be sensitive and therefore only available through the countries network operators the accuracy of data analysis will be subject to the quality of information submitted by the respective countries All data received shall only be used for the purpose of this study
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Terminology used in this report
Outbound roaming
Roaming from the perspective of the home country E.g. Singapore subscriber roaming in Malaysia Malaysia is the outbound roaming
destination for Singapore subscribers
Inbound roaming
Roaming from the perspective of the visiting country E.g. Singapore subscriber roaming in Malaysia Singapore subscriber is the
inbound roamer in Malaysia
Inter-operator tariff (IOT)
Wholesale price charged by visiting operator to home country operator

(USD per SMS or USD per megabyte)
Retail margins Pricing disparity
Difference between roaming retail price and IOT Difference between roaming retail price and local retail price (for SMS / mobile
data), expressed as a percentage over local retail price
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Analysis of pricing disparities

How do we determine if roaming retail prices are high or low? Roaming retail price - Cost of domestic mobile substitutes = Price disparity
Roaming SMS pricing disparity
E.g. Subscriber in Country A visits Country B (Outbound Country)

Country A
SMS back home
Country A subscriber Country A subscriber
Country B Retail charge of roaming SMS paid by Country A subscriber (For SMS sent from Country B to A)
Country B Retail charge of local SMS paid by Country B subscriber (For SMS sent from Country B to A)
Country B subscriber
=
Roaming pricing disparity
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Analysis of pricing disparities (contd)

How do we determine if roaming retail prices are high or low? Roaming retail price - Cost of domestic usage = Price disparity
Roaming mobile data pricing disparity
E.g. Subscriber in Country A visits Country B (Outbound Country)

Country B
Roaming mobile data usage in Country B
Country A subscriber
Retail charge of roaming mobile data paid by Country A subscriber (For usage in Country B)
Country A
Local mobile data usage in Country A
Retail charge of local mobile data paid by Country A subscriber (For usage in Country A)
=
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ASEAN Overview
Profile of current market landscape across ASEAN

Mobile data consumption has been growing significantly in Asia, especially with the proliferation of mobile broadband technologies. However, the market is still largely perceived to be a premium service and is currently limited to mostly corporate users Key market statistics
Estimated number of HSPA connections by 2010: 342 million connections worldwide*
Key observations
Mobile data usage has seen significant growth in Asia over the past few years, as a result of rising mobile broadband penetration and smart phone adoption According to GSMA, Asia Pacific is expected to see the largest investment in mobile broadband technologies such as HSPA and HSPA+, with predicted capital expenditure of up to USD 34 billion by 2010 The proliferation of 3G networks across ASEAN has also boosted data consumption by enabling higher capacity and speeds of data transmission (refer to Appendix 1 for details) The shifting emphasis from voice to data is especially evident in developed markets such as Singapore, where contributions of data over total mobile APRU have been increasing by an average of 10% respectively from 2004 - 2008 Competition for mobile data revenues is also increasingly focused within the international roaming space. Network operators are currently experimenting with new retail charging models, from unlimited to tiered data roaming plans, to spur greater data usage beyond the domestic front However, mobile data roaming is still relatively nascent within ASEAN, with varying degrees of service adoption and market maturity across the ASEAN countries
20%
Other North regions America 48 mn 58 mn
Europe 120 mn
Asia Pacific 116 mn
Smartphone penetration rate in South East Asia (Q4 2009): Percentage penetration in each country^
78% 66% 56% 44% 33%
Mobile data roaming is still perceived to be a premium service and is mostly limited to corporate users. Consumers or leisure roamers tend to switch to cheaper options such as local SIM cards or the internet to avoid high data roaming charges
Indonesia
Malaysia
Philippines Singapore
Thailand
Vietnam
Source: GSM World; * Wireless Intelligence; ^AdMob Synovate 2010
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Profile of current market landscape across ASEAN

Mobile voice remains the main source of service revenue for most countries. Singapore and Malaysia account for close to 98 per cent of the overall SMS and mobile data revenues in ASEAN Key mobile statistics across ASEAN countries (2009)
Data not provided Data not provided Data not provided
Key observations
The market for SMS and mobile data services in ASEAN is currently estimated to be 1,907.6 mn* which accounts for 22.5%* of total mobile revenues Expenditure on SMS and mobile data is generally varied across ASEAN countries, with Malaysia and Singapore accounting for 97.9%* of the overall market
* Based on the total revenue contributions of Brunei, Cambodia, Malaysia, and Singapore
Data not provided Data not provided Mobile voice: 94% Mobile data & SMS: 6%
Mobile voice: 80% Mobile data & SMS: 20% Mobile voice: 14% Mobile data & SMS: 86%
Total mobile revenues Mobile voice: 66% Mobile data & SMS: 34% Mobile Revenues (USD mn)
Voice : 6,551.7 Mobile data & SMS : 1,907.6
Data not provided Legend Mobile Revenues (USD mn)

Voice Mobile data & SMS
Note on above diagram: The mobile revenue figures for each country have been excluded due to data sensitivity Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Overview of SMS and mobile data developments

SMS has been the main driver of mobile usage however, mobile data service has been fast gaining popularity due to the high cost of fixed-line broadband services, as well as increasing availability of 3G-enabled phones
Revenue contribution of mobile data & SMS services USD (2009)* USD (2009)
Key observations on mobile data & SMS developments

SMS dominates data usage. SMS has been the main driver of mobile usage (currently, mobile data and SMS services jointly contribute to over 80% of total mobile revenues) Mobile data service is fast gaining popularity. Although the mobile data market is still relatively nascent, usage has been increasing in recent years. One key driver is the high monthly cost of fixed-line broadband services (up to $300 per month) in Brunei, which has led to users switching to mobile data^ as a cheaper alternative for internet access, especially with the increasing availability of 3G-enabled phones
Notes: * Bruneis mobile revenues appear to be low, compared to other ASEAN countries, due to its relatively small base of mobile subscribers (Brunei has a total of approximately 0.4 million mobile users as of 2009, of which prepaid and postpaid subscribers account for approximately 85% and 15% of the total base respectively ^ According to an article by Brunei Times and MIS Asia, Brunei currently ranks first amongst Southeast Asian countries in terms of having one of the highest number of web page views per user on the mobile phone . A mobile user in Brunei may browse as many as 957 web pages on average each month
Mobile data & SMS 86.0% Outbound roaming mobile data 1.0% (of 86.0%) Outbound roaming SMS 7.5% (of 86.0%)
Mobile voice 14.0%

Total mobile revenues Outbound roaming revenues (within ASEAN)
Note on above diagram: The mobile revenue figures have been excluded due to data sensitivity Source: Synovate surveys with ASEAN mobile network operators
Source: Brunei Times, MIS Asia, Synovate surveys with ASEAN mobile network operators
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Drivers and barriers for data roaming

Mobile data roaming has been boosted by the increasing penetration of smart phones, the growing proliferation of 3G networks, as well as the introduction of more competitive retail pricing models. However, overall usage is still deterred by the high cost of roaming and the potential risk of bill shock Drivers for usage within ASEAN
SMS Service familiarity. SMS is a relatively mature service offering across Asia, and is generally perceived to be a cheaper option then voice or mobile data roaming Growing service accessibility. A number of countries within Asia, especially those with a large prepaid base, has started to roll out prepaid SMS roaming services (some operators also offer free incoming roaming SMS) Cost visibility. Charges for SMS are based on per instance and are therefore easily tracked by the end user Data Increasing ubiquity of smart phones. Rapidly rising phone adoption as a result of falling phone prices and the growing penetration of devices such as Blackberry and iPhone (sales of iPhones in Asia Pacific saw a 500% yearover-year increase in 2009) Upgrading of mobile networks. Widespread roll-out of 3G systems to enhance mobile broadband usage through faster transmission speeds and bandwidth capacity More competitive retail charging models. Increasing shift towards unlimited / tiered pricing plans, with aggressive marketing push by regional mobile alliances such as Conexus and Bridge Alliance
Source: ABI Research, press articles, Synovate interviews
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Barriers to roaming SMS and mobile data usage

SMS Relative high cost of roaming SMS to local prepaid SMS. E.g. A Singapore mobile user roaming in the Philippines may pay as low as PHP 1.00 (SGD 0.03) per SMS with a local prepaid card, versus SGD 0.60 for a roaming SMS Data Prohibitive cost of data roaming. The cost for mobile data roaming is considerably higher than that of local charges. Roaming may cost about 15 to 50 times the price of local data usage Poor visibility over data roaming usage and expenditure. Limited measures for the real-time tracking / capping of roaming data usage and expenditure, which increases the risks of bill shock
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Retail price trends for data roaming

Retail charging models and pricing tend to vary significantly between domestic and roaming usage - mobile users tend to have less flexibility and control over data roaming usage and expenditures
Comparison of domestic and roaming retail models
Domestic offerings SMS and mobile data services are usually bundled with other services and charged at a monthly fee Most operators offer plan-based pricing, which charges a fixed fee for a capped or unlimited usage volume (cap may be measured in MB or GB). Excess usage beyond the cap is usually charged by per instance of usage (e.g. per SMS and per KB) Specific fees are available for services such as MMS
Roaming offerings SMS and mobile data services are often charged by per instance of usage. Unlike most domestic plans, users do not have the flexibility to vary their roaming spent according to different usage volumes In recent years, mobile alliances have started to offer flat rate mobile data pricing plans, where usage is capped at a fixed fee While such flat rate packages provide some degree of cost savings and pricing transparency, they are limited to selected countries / networks. Furthermore, any excess usage beyond the cap is usually charged by per instance of usage There are no specific fees are catered for services such as MMS (e.g. MMS is usually converted to charges at per KB / MB, depending on size of MMS) Users who are familiar with bundled domestic plans may find it difficult to estimate their data expenditures by per instance usage While SMS roaming expenditures may be more easily tracked on a per usage basis, most users may not be aware of their data consumption for various mobile data services. This, coupled with the lack of roaming price caps, can easily result in bill shocks
Implications
Source: Press articles; Synovate interviews and analysis Synovate 2010
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Retail offerings for data roaming

Roaming retail charges have become more affordable and predictable with the launch of flat rate data plans from alliances such as Bridge Alliance and Conexus. However, the issue of pricing transparency is still not completely addressed as excess usage above the cap may still be charged at the prevailing operator rates Examples of mobile alliances in Asia
Overview of alliance members 1. Advanced Info Service (Thailand) 2. Bharti Airtel (India) 3. Hong Kong CSL (Hong Kong) 4. CTM (Macau) 5. Globe Telecom (Philippines)
Bridge DataRoam Bridge Alliance launched its flat rate data roaming plans in November 2007, with options for daily, weekly or monthly usage. The plan is an add-on subscription to the subscribers local mobile data plan
Plans Up to 5 MB Up to 15 MB Up to 40 MB Daily USD 10.0 Weekly USD 12.5 Monthly USD 15.0 USD 30.0 USD 60.0
6. Maxis Communications (Malaysia)

7. Optus (Australia) 8. Singapore Telecommunications (Singapore) 9. SK Telecom (South Korea)
Flat rate pricing is only applicable to roaming within members networks. Mobile users of alliance members are able to enjoy a single roaming rate to other member networks (as specified by each plan / usage option)
10. Taiwan Mobile (Taiwan)

11. Telkomsel (Indonesia)
Usage limit is on an accumulative basis within the time frame of each plan. Any usage above the cap is charged on the prevailing rates of the respective member operators
Comparison of alliance pricing with member operators pricing Prices offered by the alliance are cheaper than that of members individual offering. For example:
SingTel Bridge DataRoam charges USD 1.5-2 per MB ( ~SGD 2.1-2.8) SingTel retail roaming prices SGD 10-30 per MB Benefits of alliance ~ 80% potential savings
Source: Bridge Alliance website, SingTel web site

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Retail offerings for data roaming (contd)

Roaming retail charges have become more affordable and predictable with the launch of flat rate data plans from alliances such as Bridge Alliance and Conexus. However, the issue of pricing transparency is still not completely addressed as excess usage above the cap may still be charged at the prevailing operator rates Examples of mobile alliances in Asia Barriers to roaming SMS and mobile data usage
Overview of alliance members 1. Bharat Sanchar Nigam Limited (India) 2. FarEasTone (Taiwan) 3. Hutchison Telecommunications International Limited (Hong Kong) 4. Indosat (Indonesia) 5. KT (South Korea) 6. Mahanagar Telephone Nigam Limited (India) 7. NTT Docomo (Japan) 8. Smart Communications (Philippines) 9. StarHub (Singapore) 10.True Move (Thailand) 11.Vinaphone (Vietnam) Comparison with individual providers pricing Prices offered by the alliance are cheaper than that of members individual offering. For example:
Starhub Conexus charges SGD 15 per day (unlimited) Starhub retail roaming prices SGD 10-30 per MB Benefits of alliance Cost savings with capped usage
Mobile data roaming offerings Conexus introduced its data roaming plan in April 2008. Charges were based on a pay-per-day flat rate plan. A specific plan for Blackberry users was later rolled out in 2009 Unlike Bridge DataRoam, the flat rate charges under the Conexus plan are specific to each member operator. As such, there is no true unified rate that is applied across the alliance For example, Hutchinson (Hong Kong) offers a flat rate of HK 138 (~USD 18) to its mobile users, whereas Starhub (Singapore) offers SGD 15 (~USD 11) per day
Source: Conexus Mobile Alliance website, Starhub web site, Hutchinson web site
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Transparency on data roaming prices

Extent of pricing transparency for mobile data roaming is still at the baseline level across ASEAN information provision is often passive and the onus is usually on the end user to find out the applicable roaming usage charges and cost drivers Metrics for evaluating pricing transparency
Availability of roaming data charges (price per MB / KB) for various visited countries on home operators website Availability of roaming SMS charges (price per SMS) for various visited countries on home operators website Roaming charges were available through customer service Users are informed of the risk of automatic and uncontrolled data roaming connection and download, as well as how to switch off such connections while roaming Users are notified (e.g. via SMS or email) when mobile data volume has reached a certain volume / financial limit Roamers are able to track usage and cost incurred Availability of information highlighting drivers of roaming data charges (e.g. how much data may be transmitted for certain services such as MMS) Users are informed of data roaming charges in visited country via SMS free of charge Users are able to receive additional tariff information via SMS free of charge
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Increasing access to information on roaming usage charges
Available in ASEAN?
Analysis of pricing transparency metrics

Generally, roaming charges are published on the operators websites and are available through the operators customer service hotlines. However, it was observed that some operators do not have information on data roaming charges on their web sites When queried, the customer service person will usually explain how mobile data roaming charges are incurred, as well as highlight basic risks to note (e.g. how to switch off automatic downloads when accessing emails) For most operators, users are notified via email when they exceed a certain financial / volume of roaming limit. Users are also able to track their personal usage and expenditure through the providers websites or customer service hotlines However, information on roaming charges tend to be passively provided, and the level of comprehensiveness is usually dependent on the initiative and knowledge of the end user: - Alerts on usage are often only available through indirect channels (e.g. email), rather than direct channels (e.g. SMS) - SMS alerts on roaming charges of visiting country are not often provided
?
Varies across countries
X
X X
Information explaining potential drivers of roaming charges for different services (e.g. MMS), or on additional tariffs, is typically not provided
Source: Web sites and service hotlines of selected operators across ASEAN
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Inter-operator relations on roaming arrangements

Inter-operator cost components form a significant portion of wholesale roaming cost. IOT accounts for the largest source of wholesale cost disparities, of which variances may stem from the balance of roaming traffic between networks, quality of network infrastructure, and the strategic importance of roaming to the operators mobile business Cost components for SMS and mobile data roaming
A significant portion of wholesale cost for SMS and data roaming is attributed to inter-operator charges 1 Inter-operator tariffs: Wholesale fee charged by the visited network operator to the home network operators for allowing the roaming customer to send SMS or use data services Inter-operator cost components: Interconnect costs Connectivity charges paid by home network operator to visited network operator. Components for data and SMS roaming are GPRS Roaming Exchange (GRX) and Short Message Service Centre (SMCS) respectively TAP (Transferred Account Procedure) Mechanism enabling operators to exchange roaming billing data Data clearing Wholesale billing 3 Other cost components (home operator): Network equipment Software update and configuration
Key determinants on inter-operator tariffs (IOT)

Drivers of IOT Volume of outbound roaming traffic. Typically, wholesale pricing discounts are bilaterally determined by the balance of roaming volumes between two countries. The operator with larger roaming volumes would often be able to negotiate for lower IOT rates. Volume commitments through alliance memberships or preferred partnerships may also translate to more favorable IOT rates Quality of local network infrastructure. Operators with inferior network coverage, speed or capacity, tend to attract lower volumes of inbound roamers as a result of poorer user experience. Such players may make use of lower IOTs to improve on their competitive offering to visiting operators Strategic importance of roaming. Although roaming volume is usually the key driver for IOT variances, operators with a large domestic market or are more dependent on voice revenues, may choose to set high IOTs (regardless of their relative roaming traffic). In such cases, operators may not see the need to offer competitive IOT charges as roaming is not perceived to be an important market for them
Retail billing and invoicing

Marketing
Source: Synovate interviews and analysis Synovate 2010
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Brunei
Overview of mobile data and SMS traffic and trends
Pricing benchmarking and analysis

SMS has been the main driver of mobile usage however, mobile data service has been fast gaining popularity due to the high cost of fixed-line broadband services, as well as increasing availability of 3G-enabled phones
Revenue contribution of mobile data & SMS services USD (2009)* USD (2009)

SMS dominates data usage. SMS has been the main driver of mobile usage (currently, mobile data and SMS services jointly contribute to over 80% of total mobile revenues) Mobile data service is fast gaining popularity. Although the mobile data market is still relatively nascent, usage has been increasing in recent years. One key driver is the high monthly cost of fixed-line broadband services (up to $300 per month) in Brunei, which has led to users switching to mobile data^ as a cheaper alternative for internet access, especially with the increasing availability of 3G-enabled phones
Notes: * Bruneis mobile revenues appear to be low, compared to other ASEAN countries, due to its relatively small base of mobile subscribers (Brunei has a total of approximately 0.4 million mobile users as of 2009, of which prepaid and postpaid subscribers account for approximately 85% and 15% of the total base respectively ^ According to an article by Brunei Times and MIS Asia, Brunei currently ranks first amongst Southeast Asian countries in terms of having one of the highest number of web page views per user on the mobile phone . A mobile user in Brunei may browse as many as 957 web pages on average each month
Mobile data & SMS 86.0% Outbound roaming mobile data 1.0% (of 86.0%) Outbound roaming SMS 7.5% (of 86.0%)
Mobile voice 14.0%

Total mobile revenues Outbound roaming revenues (within ASEAN)
Note on above diagram: The mobile revenue figures have been excluded due to data sensitivity Source: Synovate surveys with ASEAN mobile network operators
Source: Brunei Times, MIS Asia, Synovate surveys with ASEAN mobile network operators
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Pricing models for SMS and mobile data roaming are mainly on a per-instance usage basis. Pricing intervals for mobile data seem to vary significantly with different network operators within the same roaming destination
Mobile operators B-Mobile
Charging models for roaming SMS Charges per SMS
Charging models for roaming mobile data Charges per instance of usage, which may vary by intervals ranging from 1 kilobyte to 1 megabyte (for different roaming destinations
Key observations on pricing trends

Pricing models for SMS and mobile data roaming are mainly on a per-instance usage basis While a growing number of network operators across ASEAN has started to provide flat rate or unlimited regional mobile data offerings via mobile alliances or roaming partnerships, Brunei has yet to participate in such roaming arrangements In addition, Bruneis mobile data roaming rates seem to vary significantly with various network operators within the same destination .
Charging intervals also vary within the same roaming destination, depending on the network operator which the roamer logs on to
DSTCom Charges per SMS Charges per instance of usage, which may vary by intervals ranging from 1 kilobyte to 1 megabyte (for different roaming destinations Charging intervals also vary within the same roaming destination, depending on the network operator which the roamer logs on to
Source: Synovate surveys with ASEAN mobile network operators, Operator websites Synovate 2010
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Brunei
Analysis of SMS roaming charges

Pricing disparity between local and roaming SMS charges is especially significant in destinations such as Indonesia, Laos and Malaysia. For Indonesia, the high price disparity may be partially attributed to its relatively low local SMS retail rates Pricing comparisons between roaming SMS retail charges & domestic SMS retail charges (Brunei roamer travelling to ASEAN destinations)
USD per SMS $0.80
Outbound Roaming Destinations
Difference between roaming & local charges 800% 700%
$0.70
0.78
$0.60
$0.50 0.59 $0.40 $0.30 $0.20 $0.10 $0.00 Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam 0.09 0.05 0.36 0.22 0.34 0.10 0.10 0.11 0.45 0.47 0.22 0.15 0.39 0.62
600% 500% 400% 300% 200% 100%
0%
Average retail charge of local SMS
Average retail charge of roaming SMS
Pricing disparity between roaming and local SMS charges
Notes: 1. Average retail charge of roaming SMS: Prices are derived by averaging the minimum and maximum roaming rates charged to the roaming subscribers of selected mobile network operators 2. Average retail charge of local SMS: Prices are derived by averaging the minimum and maximum local rates charged to subscribers when sending SMS to overseas locations 3. Pricing disparity: Estimated by taking the difference between the average retail charge of roaming SMS and the average retail charge of local SMS Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Wholesale tariffs appear to be rather varied across roaming destinations. In particular, Laos pricing disparity seems to be mainly attributed to its wholesale tariff, which is the highest amongst ASEAN countries
Pricing comparisons between roaming SMS retail charges & wholesale charges (Brunei roamer travelling to ASEAN destinations)
USD per SMS $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam 0.25 0.1 0.11 0.23 0.45 0.35 0.23 0.22 0.24 0.19 0.25 0.37 0.25 0.33 Outbound roaming destinations
0.28 0.15
Average wholesale tariff of local SMS
Average retail margin of roaming SMS
Average wholesale tariff of roaming SMS across ASEAN
Notes: 1. Wholesale tariff: Refers to the inter-operator tariff (IOTs) charged by the visiting operator to the home operator 2. Average wholesale tariff: Prices are derived by averaging the minimum and maximum roaming IOTs (SMS) charged by selected visiting operators to the countrys home operators 3. Retail margin: Refers to the difference between the retail charge and wholesale charge of the roaming SMS 4. Average retail margin: Based on the difference between the average retail charge of roaming SMS and the average wholesale tariff 5. Average wholesale tariff of roaming SMS across ASEAN: Based on the average of wholesale tariffs charged across all ASEAN roaming destinations Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Retail margins seem to be fairly consistent across most destinations with the exception of Laos, which seems to have especially high retail mark-up
Pricing analysis of roaming SMS retail margins (Brunei roamer travelling to ASEAN destinations)
USD per SMS $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 0.11 $0.00 Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam 0.23 0.33 0.24 0.22 0.19 0.25 0.25 0.25 0.10 0.35 0.23 0.28 0.45 Outbound roaming destinations
0.37
0.15
Average retail margin across ASEAN
Notes: 1. Wholesale tariff: Refers to the inter-operator tariff (IOTs) charged by the visiting operator to the home operator 2. Average wholesale tariff: Prices are derived by averaging the minimum and maximum roaming IOTs (SMS) charged by selected visiting operators to the countrys home operators 3. Retail margin: Refers to the difference between the retail charge and wholesale charge of the roaming SMS 4. Average retail margin: Based on the difference between the average retail charge of roaming SMS and the average wholesale tariff 5. Average retail margin of roaming SMS across ASEAN: Based on the average of retail margins charged across all ASEAN roaming destinations Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Summary of findings - SMS roaming charges

High wholesale tariffs seem to be the main driver of price disparities between roaming and local SMS charges for most destinations
Analysis of pricing disparities for roaming SMS (Brunei roamer travelling to ASEAN destinations)
Percentage 700% 600%
532% 521%
Outbound roaming destinations

697%
High pricing disparities
500% 400%
300%
327%
300% 200%
100% 180% 161% 60% 63%
100%
31%
69%
70% 30%
42%
58%
41%
59%
49% 51%
40%
60%
40%
38%
0% Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam
Disparity between local and roaming retail charges (%)
Contribution of retail margin over roaming retail price
Contribution of wholesale tariff over roaming retail price
Destinations Margin >50% IOT >50%
Cambodia
Indonesia
Lao PDR
Malaysia
Philippines
Singapore
Thailand
Vietnam
Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Roaming volume versus pricing analysis - SMS

Comparison of roaming volumes versus roaming retail charges (Brunei roamer travelling to ASEAN destinations)
Number of messages 6,000,000 5,000,000 4,000,000
USD per SMS
5,894,553
$0.90
$0.80
$0.78 $0.62 $0.50 $0.45 2,000,000 1,000,000 1,741 0 Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam 558,514 198 $0.36 $0.34 $0.70 $0.60 $0.59 3,000,000
$0.47
$0.39
$0.40 $0.30 $0.20
391,480
417,086
125,928
$0.10 58,809 $0.00
SMS roaming volumes
Notes: 1. Average retail charge of roaming SMS: Prices are derived by averaging the minimum and maximum roaming rates charged to the subscribers of selected mobile network operators
Synovate 2010
28
Analysis of mobile data roaming charges

Pricing disparities for mobile data roaming charges appear to be especially significant in Brunei, partly due to the very low local data charges. While the pricing disparities across most destinations tend to fall around the range of 8,000 per cent, Thailands disparity was exceptionally high, averaging at about 14,000 per cent Pricing comparisons between roaming mobile data retail charges & domestic mobile data retail charges (Brunei roamer travelling to ASEAN destinations)
USD per megabyte $25

Note: Data on Laos was not provided
$20 12000% 22.5 $15 13.4 $10 12.6 6000% 4000% $5 10000%
15.8
15.2
14.2
8000%
11.0
0.2 $0 Cambodia Indonesia Malaysia Philippines Singapore Thailand Vietnam 0.2 0.2 0.2 0.2 0.2 0.2
2000%
0%
Average retail charge of local mobile data in Brunei Pricing disparity between roaming and local mobile data changes
Retail charge of roaming mobile data
Notes: 1. Average retail charge of roaming mobile data: Prices are derived from the prevailing roaming rates charged to the roaming subscribers of selected mobile network operators 2. Average retail charge of local mobile data: Prices are derived by averaging the minimum and maximum local rates charged to the subscribers of selected mobile network operators 3. Pricing disparity: Estimated by taking the difference between the maximum retail charge of roaming data and the average retail charge of local data Source: Synovate surveys with ASEAN mobile network operators (data on Laos was not provided in the questionnaire submitted by Brunei); Synovate analysis Synovate 2010
29

Wholesale tariffs appear to be widely varied across destinations with countries such as Indonesia and Philippines displaying especially high rates
Pricing comparisons between roaming mobile data retail charges & wholesale charges (Brunei roamer travelling to ASEAN destinations)
USD per megabyte $25 Outbound roaming destinations Average retail rate of local data in Brunei = $0.20 per megabyte
$20 0.2 $15 15.3 2.9
0.3
5.2 $10 15.0 $5 12.3 8.2 5.5 $0 Cambodia Indonesia Malaysia Philippines Singapore Thailand 8.9 7.2 10.3 2.2
11.3
Vietnam
Average wholesale tariff of mobile data
Average retail margin of roaming mobile data
Average wholesale tariff of roaming mobile data across ASEAN

Notes: 1. Wholesale tariff: Refers to the inter-operator tariff (IOTs) charged by the visiting operator to the home operator 2. Average wholesale tariff: Prices are derived by averaging the minimum and maximum roaming IOTs (data) charged by selected visiting operators to the countrys home operators 3. Retail margin: Refers to the difference between the retail charge and wholesale charge of the roaming data 4. Average retail margin: Based on the difference between the retail charge of roaming data and the average wholesale tariff 5. Average wholesale tariff of roaming data across ASEAN: Based on the average of wholesale tariffs charged across all ASEAN roaming destinations Source: Synovate surveys with ASEAN mobile network operators (data on Laos was not provided in the questionnaire submitted by Brunei); Synovate analysis Synovate 2010
30

Similarly, retail margins also reflect a diverse range, with the mark-up for Thailand being exceptionally high
Pricing analysis of roaming mobile data retail margins (Brunei roamer travelling to ASEAN destinations)
USD per megabyte $25 Outbound roaming destinations Average retail rate of local data in Brunei = $0.20 per megabyte
$20 7.2 $15 5.5 $10
8.2 15.0 12.3
8.9
15.3
11.3
$5
5.2
$0 Cambodia Indonesia
10.3 0.3 Malaysia Philippines 0.2 2.2 Singapore Thailand 2.9 Vietnam
Average retail margin of roaming mobile data across ASEAN
Notes: 1. Wholesale tariff: Refers to the inter-operator tariff (IOTs) charged by the visiting operator to the home operator 2. Average wholesale tariff: Prices are derived by averaging the minimum and maximum roaming IOTs (data) charged by selected visiting operators to the countrys home operators 3. Retail margin: Refers to the difference between the retail charge and wholesale charge of the roaming data 4. Average retail margin: Based on the difference between the retail charge of roaming data and the average wholesale tariff 5. Average wholesale tariff of roaming data across ASEAN: Based on the average of wholesale tariffs charged across all ASEAN roaming destinations Source: Synovate surveys with ASEAN mobile network operators (data on Laos was not provided in the questionnaire submitted by Brunei); Synovate analysis Synovate 2010
31
Summary of findings - data roaming charges

Pricing disparities between roaming and local mobile data charges are mainly caused by relatively high wholesale tariffs occurred across most destinations. The exception is Thailand, where the retail margin was observed to be unusually high, resulting in its especially significant pricing disparity Analysis of pricing disparities for roaming data (Brunei roamer travelling to ASEAN destinations)
Percentage Outbound roaming destinations
Note: Graph is not drawn to scale due to the wide range of percentages
16000% 14000% 12000%

10413% 10045%
14881%
10000% 8000% 6000% 4000% 2000%
8836%
9362% 8311% 7259%
39%
61%
3%
97%
65%
35%
1%
99%
20%
80%
68%
32%
21%
79%
0% Cambodia Indonesia Malaysia Philippines Singapore Thailand Vietnam

Disparity between local and roaming retail charges (%) Contribution of retail margin over roaming retail price Contribution of wholesale tariff over roaming retail price
Cambodia
Indonesia
Malaysia
Philippines
Singapore
Thailand
Vietnam
Source: Synovate surveys with ASEAN mobile network operators (data on Laos was not provided in the questionnaire submitted by Brunei); Synovate analysis Synovate 2010
32
Roaming volume versus pricing analysis - data

Comparison of roaming volumes versus roaming retail charges (Brunei roamer travelling to ASEAN destinations)
Megabytes
USD per Mb
6,000 5,327 5,000 $22.5 4,000
$25.00
$20.00
$15.00 $15.8 3,000 2,000 1,000 0

No data 0 provided
$15.2
$13.4
2,703 $11.0
$14.2 $10.00
$12.6
626 0 No data provided Indonesia Lao PDR Malaysia 191 Philippines Singapore
$5.00
441
0 No data provided Thailand Vietnam $0.00
Cambodia
Roaming data volumes
Notes: 1. Average retail charge of roaming mobile data: Prices are derived from the prevailing roaming rates charged to the subscribers of selected mobile network operators Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
33
Cambodia

Mobile revenues in Cambodia are dominated by voice services as most phones do not support texting in the local Khmer language. However, local mobile data usage is expected to increase with the emergence of aggressive pricing plans Revenue contribution of mobile data & SMS services Key observations on mobile data & SMS developments
Voice services still account for the bulk of mobile revenues. Data services currently account for a marginal portion of mobile revenues: SMS usage is still relatively low as one of the key barriers has been the inability to text in the local Khmer language, as most mobile phones do not support this feature Mobile data consumption has also been relatively limited due to the low take-up of 3G subscriptions, even though network operators have started to implement HSDPA networks Local mobile data usage is expected to increase with the emergence of aggressive pricing plans. Operators have started to offer more cost-effective bundled price plans to boost local mobile data usage. These plans may be tiered by various usage volumes (i.e. daily, weekly, monthly, or unlimited) and may be priced as low as USD 1 per day
USD (2009)
USD (2009)
Outbound roaming mobile data 0.2% (of 4.0%) Outbound roaming SMS 0.8% (of 4.0%)
4.0%
Mobile data & SMS
Mobile voice
96.0%
Total mobile revenues
Outbound roaming revenues (within ASEAN)
Note on above diagram: The mobile revenue figures have been excluded due to data sensitivity Source: Synovate surveys with ASEAN mobile network operators Source: Business Monitor International, Paul Budde Communications, Ministry of Post and Telecommunications, Synovate interviews with operators
Synovate 2010
35

Mobile data roaming services are mostly charged by per instance of usage however, pricing models are highly disparate across network operators, with significant variances in terms of charging intervals
Mobile operators Mobitel (CamGSM)
Charging models for roaming mobile data Charges per 1 kilobyte

Pricing models for roaming SMS have remained relatively unchanged over the past few years Pricing models for mobile data roaming seem to be disparate across Cambodian operators. For example, charging intervals may vary by as much as 1 kilobyte to 1 megabyte (for the same roaming destination) The concept of flat rate or unlimited data roaming is still relatively nascent in the market. For example, while Hello Axiata has been one of the few players to offer an unlimited data roaming plan to its subscribers, this offering is confined to its affiliated operator networks under the Axiata Group
Notes: *Unlimited data roaming at a daily fixed fee is available for subscribers who roam on affiliated operator networks under the Axiata Group, such as Celcom (Malaysia), M1 (Singapore), Indonesia XL Axiata (Indonesia), Dialog Axiata (Sri Lanka), Robi Axiata (Bangladesh)
M Fone (CamShin)
Charges per SMS
Charges per instance of usage, which may vary by intervals ranging from 1 kilobyte to 1 megabyte (for different roaming destinations)
Charges per 1 megabyte Discounted rates for subscribers who roam with either Viettel Vietnam or Viettel Laos within Indo-China
MetFone (Viettel)
Charges per SMS
Hello Axiata
Charges per SMS
Charges per 1 kilobyte Unlimited data roaming at a daily fixed fee with selected network operators under the Axiata group*
Smart Moblie (Latelz)
Charges per SMS
Charges per 25 kilobytes
Source: Synovate surveys with ASEAN mobile network operators, Operator websites Synovate 2010
36
Cambodia

Pricing disparity between local and roaming SMS rates generally ranges between 100 to 200 per cent, with the exception of Laos and Malaysia, where the price differential may be as high as 500 to over 600 per cent
Pricing comparisons between roaming SMS retail charges & domestic SMS retail charges (Cambodian roamer travelling to ASEAN destinations)
USD per SMS $0.80
Difference between roaming & local charges 800%
$0.70 $0.60
0.76 0.65
700% 600% 0.57 500% 400%
$0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Brunei Indonesia Lao PDR 0.15 0.20 0.05 0.10 0.10
0.41
0.39 0.22 0.11
0.40
0.22 0.15
300% 0.32 200% 100%
0%
Malaysia Philippines Singapore Thailand Vietnam
38

In addition to having the most significant pricing disparities, Laos was also observed to have the highest wholesale tariffs for roaming SMS amongst ASEAN countries.
Pricing comparisons between roaming SMS retail charges & wholesale charges (Cambodian roamer travelling to ASEAN destinations)
USD per SMS $0.80 $0.70 $0.60 $0.50 0.22 $0.40 0.13 $0.30 $0.20 0.28 $0.10 0.11 $0.00 Brunei Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam 0.09 0.45 0.35 0.24 0.25 0.15 0.15 0.15 0.17 0.37 0.28 0.31 Outbound roaming destinations
39

.interestingly, retail margins charged to subscribers who roam in Laos are also amongst the highest, compared to other destinations
Pricing analysis of roaming SMS retail margins (Cambodian roamer travelling to ASEAN destinations)
USD per SMS $0.80 $0.70 $0.60 0.45 $0.50 $0.40 $0.30 $0.20 0.11 $0.10 $0.00 Brunei Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam 0.31 0.22 0.28 0.15 0.15 0.17 0.28 0.35 0.24 0.25 0.37 Outbound roaming destinations
0.15
0.13
0.09
40

Generally, wholesale tariffs account for the bulk of roaming retail charges and may be attributed as one of the key drivers for Cambodias significant pricing disparities
Analysis of pricing disparities for roaming SMS (Cambodian roamer travelling to ASEAN destinations)
500% 676%

High pricing disparities
500% 400% 300% 200% 100%

31% 173% 75% 25% 73% 272% 264%
193% 114%
69% 44% 56% 57% 43%
38%
63% 33%
68% 24%
76%
51% 49%
0% Brunei Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam
Brunei
Indonesia
Lao PDR
Malaysia
Philippines
Singapore
Thailand
Vietnam
41

Comparison of roaming volumes versus roaming retail charges (Cambodian roamer travelling to ASEAN destinations)
Number of messages 150,000 125,000 100,000 75,000 $0.41 50,000 25,000 626 0 Brunei Indonesia Lao PDR $0.20 30,303 15,152 $0.76
USD per SMS
140,693
$0.80 $0.70
$0.65 $0.57 $0.40 54,113 $0.39 58,442 $0.32 56,277 10,823
$0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00
Malaysia
Philippines
Singapore
Thailand
Vietnam
SMS roaming volumes
Notes: 1. Average retail charge of roaming SMS: Prices are derived by averaging the minimum and maximum roaming rates charged to the subscribers of selected mobile network operators Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
42

Pricing disparities for mobile data roaming charges are especially pronounced in Cambodia, partly due to the very low local data charges. Roaming retail charges are also highly varied across destinations, resulting in a wide spread of pricing disparities, ranging from 2,000 per cent to over 20,000 per cent Pricing comparisons between roaming mobile data retail charges & domestic mobile data retail charges (Cambodian roamer travelling to ASEAN destinations)
Outbound Roaming Destinations Highest roaming volumes but retail charge is relatively high
Difference between roaming & local charges 30000% 25000% 24.1 20000% 16.4 15000% 10000% 9.7 5000%
$25
$20 $15 $10 10.2 $5 0.1 $0 3.1 0.1 Indonesia 0.1 Lao PDR 0.1 Malaysia 0.1 Philippines 0.1 Singapore 0.1 Thailand 0.1
22.0 17.9 14.1
0%
Vietnam
Brunei
Average retail charge of local mobile data in Cambodia Pricing disparity between roaming and local mobile data changes
Notes: 1. Average retail charge of roaming mobile data: Prices are derived from the prevailing roaming rates charged to the roaming subscribers of selected mobile network operators 2. Average retail charge of local mobile data: Prices are derived by averaging the minimum and maximum local rates charged to the subscribers of selected mobile network operators 3. Pricing disparity: Estimated by taking the difference between the maximum retail charge of roaming data and the average retail charge of local data Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
43

Wholesale tariffs are highly varied across roaming destinations, with the highest and lowest average tariff rates differing by over 600 per cent
Pricing comparisons between roaming mobile data retail charges & wholesale charges (Cambodian roamer travelling to ASEAN destinations)
USD per megabyte $25 Outbound roaming destinations Average retail rate of local data in Cambodia = $0.10 per megabyte
$20
9.4
7.7
$15 7.0 2.8 $10 3.1 $5 1.0 2.0 Brunei 7.2 14.3 10.9 11.3 7.2 2.6 14.7 9.6 6.8
$0
Indonesia
Lao PDR
Malaysia
Philippines
Singapore
Thailand
Vietnam

Notes: 1. Wholesale tariff: Refers to the inter-operator tariff (IOTs) charged by the visiting operator to the home operator 2. Average wholesale tariff: Prices are derived by averaging the minimum and maximum roaming IOTs (data) charged by selected visiting operators to the countrys home operators 3. Retail margin: Refers to the difference between the retail charge and wholesale charge of the roaming data 4. Average retail margin: Based on the difference between the retail charge of roaming data and the average wholesale tariff 5. Average wholesale tariff of roaming data across ASEAN: Based on the average of wholesale tariffs charged across all ASEAN roaming destinations Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
44

Destinations with high wholesale tariffs also appear to have significant retail margins especially for Thailand, which seems to be the most expensive in terms of both wholesale and retail margin charges
Pricing analysis of roaming mobile data retail margins (Cambodian roamer travelling to ASEAN destinations)
USD per megabyte $25 Outbound roaming destinations
High IOT high retail mark-up
Average retail rate of local data in Cambodia = $0.10 per megabyte
$20 14.7 $15 14.3 10.9 $10 7.2 $5
11.3
9.6
7.2
9.4
7.7
$0 2.1 1.0 Brunei 3.1 Indonesia Lao PDR
7.0 2.8 Malaysia Philippines 2.6 Singapore Thailand
6.8
Vietnam
Average retail margin of roaming mobile data across ASEAN
45

Low local mobile data rates, coupled with high wholesale tariffs, have attributed to the significant price differences between local and roaming charges
Analysis of pricing disparities for roaming data (Cambodian roamer travelling to ASEAN destinations
Percentage 25000%
21916%

Note: Graph is not drawn to scale due to the wide range of percentages 23964%
20000%
17820% 16284%
15000%
10140%
13980%
10000%
9628%
5000%
2972% 33% 67% 30% 70% 35% 65% 39% 61% 20% 80% 26% 74% 39% 61% 42% 58%
0%
Brunei Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam
Brunei
Indonesia
Lao PDR
Malaysia
Philippines
Singapore
Thailand
Vietnam
46

Comparison of roaming volumes versus roaming retail charges (Cambodian roamer travelling to ASEAN destinations)
Megabytes
USD per Mb
1,200 1,033 1,000 24.06 800 600 400 10.24 200 0 3.07
No data0 provided
$30.00 $25.00 22.02 17.92 14.08 200 98 26 Indonesia Lao PDR Malaysia 7 $0.00 Philippines Singapore Thailand Vietnam $5.00 565 16.38 9.73 $10.00 261 $20.00 $15.00
Brunei
47
Malaysia

Malaysia ranks as one of the top users of mobile services in Asia, largely due to the countrys high service adoption and network operators increasing technological advancements. While SMS remains as one of the key driver of data revenues, network operators are looking to boost data consumption with numerous attractive promotions
Revenue contribution of mobile data & SMS services

SMS dominates data usage. Malaysia has one of the highest usage of SMS within Asia Pacific. For example, based on the SMS traffic sent during the Christmas and New Year period in 2008, the country ranks third in the Asia with over 1bn messages sent. In 2009, SMS comprised about 78% of data revenues, while 22% was accounted by mobile internet services Mobile data services are fast gaining traction. The contribution of mobile data to total mobile revenues has been rising vis--vis that of SMS*. Demand for mobile data is expected to grow over the next five years^ - especially with the increasing take-up of mobile broadband services as network operators upgrade and expand their 3G networks Competition heats up in data roaming segment. Network operators (i.e. Maxis, Celcom, and Digi) have started offering flat rate data roaming to selected countries. However, most data roaming offerings are still based on a per instance usage, with flat rate pricing being provided on a promotional basis
Notes: * According to Maxis, as of end September 2009, mobile data revenue contributed 31.7% of total mobile revenue, up from 28.5% in the corresponding period last year. Similarly, DiGi said it had seen a 19% y-o-y growth in revenue from advanced data services (non-SMS) as of 3Q2009, almost triple the 7% growth seen for overall data revenue over the same period ^ According to Pyramid Research, mobile data is estimated to account for 45% of total mobile revenues by 2014
Mobile data & SMS 20.2%
Mobile voice 79.8%
Note on above diagram: The mobile revenue figures have been excluded due to data sensitivity Source: Synovate surveys with ASEAN mobile network operators Synovate 2010
Source: Business Monitor International, Malaysian Communications & Multimedia Commission
49

Malaysian operators have become increasingly aggressive in marketing their mobile data roaming services, as evidenced by the recent roll-out of flat rate and unlimited price promotions
Mobile operators Charging models for roaming SMS Charging models for roaming mobile data

Pricing models for roaming SMS (mainly on a per instance usage basis) have remained relatively unchanged over the past few years For mobile data roaming, prices have become increasingly competitive as operators start to shift from per instance of usage pricing (charges per MB), to capped or unlimited roaming plans. However, capped or unlimited data roaming price plans are still fairly new in the market, and are mostly offered on a promotional basis (with selected countries / roaming partners)
Maxis
Charges per SMS

Capped roaming plan available under Bridge Alliance network and selected network operators Differentiated data roaming pricing for Blackberry users (who enjoy discounted GPRS rates)
Celcom
Charges per SMS
Charges per 20 kilobytes Unlimited data roaming at a daily fixed fee with selected ASEAN network operators (promotional basis only#)
DiGi
Charges per SMS Flat rate charges (per SMS) across several locations^
Charges per 10 kilobytes Capped daily data roaming rate across several countries (selected locations within Asia and Australia enjoy cheaper rates*)
Notes:
# Celcom
subscribers are able to enjoy unlimited data roaming at a daily fee of RM 38 (per day) with selected network operators within Asia Pacific. Pricing is only available on a promotional basis (till the end of 2010) *DiGi subscribers are able to enjoy unlimited data roaming at a daily fee of RM 36 (per day) with selected network operators within six countries in Asia and Australia. Pricing is only available on a promotional basis ^ Digi subscribers are able to enjoy two tiers of flat rates for roaming SMS - RM0.20 per SMS (Indonesia, China, Bangladesh, Singapore, Philippines, Nepal, India & Thailand) and RM0.50 per SMS (other countries) Source: Synovate surveys with ASEAN mobile network operators Synovate 2010
50
Malaysia

Pricing disparity between local and roaming SMS rates averages at around 250 per cent, with Indonesia and Laos showing the highest price differential
Pricing comparisons between roaming SMS retail charges & domestic SMS retail charges (Malaysian roamer travelling to ASEAN destinations)
USD per SMS $0.80
Difference between roaming & local charges 800% 700% 600% 500%
$0.70 $0.60
$0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam 0.15 0.09 0.10 0.05 0.11 0.52
400% 0.40 0.22 0.40 0.22 0.34 0.15 0.37 300% 200% 100%
0.41
0.39
0.36
0%
52

Retail pricing seems to be mainly driven by wholesale tariffs which account for more than 50 per cent of average retail rates for most roaming destinations
Pricing comparisons between roaming SMS retail charges & wholesale charges (Malaysian roamer travelling to ASEAN destinations)
USD per SMS $0.60 $0.50 0.13 $0.40 0.13 $0.30 $0.20 0.29 $0.10 $0.00 Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam 0.22 0.15 0.17 0.20 0.15 0.13 0.08 0.19 0.39 0.25 0.27 0.26 0.18 Outbound roaming destinations
53

On average, roaming retail mark-ups account for about 40 per cent of retail charges. Destinations with relatively low wholesale tariffs seem to have especially high retail mark-ups
Pricing analysis of roaming SMS retail margins (Malaysian roamer travelling to ASEAN destinations)
USD per SMS $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 0.13 $0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Thailand Vietnam 0.2 0.13
Low IOT high retail mark-up Low IOT high retail mark-up
0.39 0.29 0.22 0.15 0.25 0.27 0.26 0.18
0.17
0.15
0.19 0.13 0.08
54

Roaming charges are significantly higher than that of local SMS retail charges pricing disparities are mainly driven by relatively high wholesale tariffs for most roaming destinations . For Indonesia, the disparity may be partially attributed to the relative low retail rates of local SMS Analysis of pricing disparities for roaming SMS (Malaysian roamer travelling to ASEAN destinations)
431%

569%
Highest pricing disparity
400%
333%
300% 200% 100%

31% 173%
264%
148%
69% 75% 43% 25% 78% 38% 63% 33% 68% 76% 51% 49% 24%
44% 56%
57%
53%
0% Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam
Brunei
Cambodia
Indonesia
Lao PDR
Philippines
Singapore
Thailand
Vietnam
55

Comparison of roaming volumes versus roaming retail charges (Malaysian roamer travelling to ASEAN destinations)
Number of messages 30,000,000 25,000,000 21,089,400 20,000,000 $0.41 15,000,000 10,000,000 $0.39 $0.36
USD per SMS
$0.60 $0.50 $0.40 $0.40 $0.40 15,915,700 $0.34 $0.37 $0.30 $0.20 5,741,000 $0.10 1,727,600 $0.00 Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam
$0.52
5,000,000 0
1,956,500
715,500
1,938,400 160,600
SMS roaming volumes
56

Pricing disparity between local and roaming mobile data charges is considerably high, with differences averaging at over 800 per cent
Pricing comparisons between roaming mobile data retail charges & home country mobile data retail charges (Malaysian roamer travelling to ASEAN destinations)
$20 20.5 18.4 $15 12.3 18.4 1000% 800% 13.3 12.3
$10
12.3
12.3
600% 400%
$5
1.5
$0 Brunei
1.5
1.5
1.5
1.5
1.5
1.5
1.5
200%
0%
Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam
Average retail charge of local mobile data in Malaysia Pricing disparity between roaming and local mobile data changes
57

With the exception of Thailand, most retail charges seem to be driven by wholesale tariffs, which contribute to almost 70 per cent of retail prices. Generally, wholesale tariffs are significantly higher than Malaysias retail rate for local data
Pricing comparisons between roaming mobile data retail charges & wholesale charges (Malaysian roamer travelling to ASEAN destinations)
USD per megabyte $25 High roaming volumes but retail charge is relatively high, due to significant retail mark-up 7.2 2.4 4.4 8.2 3.1 3.2 11.6 1.7 Outbound roaming destinations Average retail rate of local data in Malaysia = $1.50 per megabyte
$20
$15
$10
$5
11.3
9.8
10.2 7.9
10.2
9.1
8.9
10.5
$0 Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam

58

Roaming retail mark-ups also seem to be especially high for destinations such as Laos and Thailand, whereby margins may be 400 to 600 per cent higher than the retail rates of local mobile data
Pricing analysis of roaming mobile data retail margins (Malaysian roamer travelling to ASEAN destinations)
USD per megabyte $25 Outbound roaming destinations Average retail rate of local data in Malaysia = $1.50 per megabyte
$20 8.9 11.3 $10 9.8 $5 7.2 2.4 $0 Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand 8.2 4.4 3.1 3.2 1.7 Vietnam 7.9 9.1 10.2 10.2 11.6 10.6
$15
Average retail margin of roaming mobile data Average retail margin of roaming mobile data across ASEAN
59

With the exception of Thailand, high wholesale tariffs seem to be the main driver of significant pricing disparities between roaming and local mobile data charges for most destinations
Analysis of pricing disparities for roaming data (Malaysian roamer travelling to ASEAN destinations)
Percentage Outbound roaming destinations
1230%
1200% 1000% 800% 600% 400% 200%
1097%
1097%
764% 698% 698% 698% 698%
39% 61%
80% 20%
36%
64%
44% 56%
77% 23%
26%
74%
56% 44%
86% 14%
0% Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam
Brunei
Cambodia
Indonesia
Lao PDR
Philippines
Singapore
Thailand
Vietnam
60

Comparison of roaming volumes versus roaming retail charges (Malaysian roamer travelling to ASEAN destinations)
Megabytes
USD per Mb
800,000 700,000
$25.00
$20.00 600,000 500,000 400,000 300,000 200,000 100,000 $12.29 $12.29 173,085 89,811 $5.00 16,921 $0.00 Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam $18.43 $18.43 $12.29 $13.31 258,529 $12.29 $15.00
$20.48
$10.00
16,782
0
5,190
570
18,373
61
Singapore

Singapores mobile data and SMS market is relatively mature compared to that of other ASEAN countries, in terms of advancement of network infrastructure and level of service adoption. However, current usage is still mainly focused on domestic consumption, with roaming services contributing to a marginal portion of total mobile revenues
Revenue contribution of mobile data & SMS services

Prevalent SMS usage: SMS has been one of the key drivers for non-voice mobile revenues. The total volume of SMS sent in 2009 was 2,025 mn messages, which represented an over 140% increase from 840 mn messages in 2005. The segment is highly competitive, with network operators offering bundled services at highly discounted prices. Widespread 3G usage: 3G currently account for over 50% of total mobile subscriptions. Investments in next generation technologies, such as 3GPP Long Term Evolution (LTE) and Evolved High-Speed Packet Access (HSPA+), is expected to fuel further 3G take-up, thereby boosting mobile data usage Growing importance of non-voice revenue: Mobile data usage is expected to increase significantly, up to 25% or more of Average Revenue Per User (ARPU). Competition in this segment has been heating up amongst network operators, who have already started offering bundled mobile data plans (mainly local usage) Shift towards high-speed mobile broadband: Network operators are currently offering mobile broadband services, with download speeds as high as up to 21Mbps
Mobile data & SMS 34.0%
Mobile voice 66.0%
Note on above diagram: The mobile revenue figures have been excluded due to data sensitivity Source: Synovate surveys with ASEAN mobile network operators Synovate 2010
Largely domestically-oriented: Although mobile data & SMS services account for a fairly significant portion of the total mobile revenues, the usage is mainly driven by domestic consumption (roaming revenues contribute to only about 5% of the total mobile SMS and data market)
Source: Business Monitor International, Infocomm Development Authority of Singapore
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While pricing models for roaming SMS have remained relatively unchanged over the past few years operators are becoming increasingly competitive in the area of mobile data roaming with the emergence of flat rate data plans
Mobile operators SingTel
Charging models for roaming mobile data Charges per 10 kilobytes Flat rate data roaming for capped usage (applicable when subscribers roam to members of the Bridge Alliance network)

Pricing models for roaming SMS have remained relatively unchanged over the past few years In contrast, prices for mobile data roaming have become increasingly competitive as operators start to shift from per instance of usage pricing (charges per MB), to flat rate data roaming pricing However, flat rate data roaming plans are currently limited to selected countries / roaming partners within the respective operators alliance networks Savings can reach up to 90% when using allianceaffiliated flat rate charges (compared to the operators standard roaming rates)*
Starhub
Charges per SMS
Charges per kilobyte Flat rate data roaming for capped usage (applicable when subscribers roam to members of the Conexus Alliance network)
M1
Charges per SMS
Flat rate data roaming for capped usage (applicable to selected mobile networks and destinations, as well as to members within the Vodafone alliance network)
Differentiated flat rate data roaming is also available for Blackberry (BlackBerry Unlimited Data Roaming)
Source: Synovate surveys with ASEAN mobile network operators; operator websites Synovate 2010
Notes: * For example, SingTel subscribers roaming in Malaysia will be charged SGD 22 per MB under standard rates. However, if they were to subscribe to the Bridge Alliance Data Roaming plan, the charges rate for a 40MB cap plan is SGD 96 (or SGD 2.40 per MB)
64
Singapore

Pricing disparity between local and roaming SMS charges is especially significant in destinations such as Cambodia, Indonesia and Laos. For Indonesia, the high price disparity may be partially attributed to its relatively low local SMS retail rates Pricing comparisons between roaming SMS retail charges & domestic SMS retail charges (Singapore roamer travelling to ASEAN destinations)
USD per SMS $0.80
$0.70 $0.60
$0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Brunei Cambodia Indonesia 0.15 0.09 0.10 0.05 0.48 0.56
0.64 0.52 0.48
700% 600% 500% 400% 0.22 0.10 0.22 0.15 300% 200% 100%
0.44
0.44
0.44
0%
Lao PDR Malaysia Philippines Thailand Vietnam
66

Generally, the average wholesale tariff across roaming destinations is almost double the retail rate of local SMS. In addition, wholesale tariffs are also highly varied across destinations, with the highest and lowest rates differing by as much as over 300 per cent Pricing comparisons between roaming SMS retail charges & wholesale charges (Singapore roamer travelling to ASEAN destinations)
USD per SMS $0.70 $0.60 0.18 $0.50 $0.40 $0.30 $0.20 0.29 $0.10 $0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Thailand Vietnam 0.23 0.11 0.46 0.36 0.24 0.16 0.36 0.19 0.33 0.12 0.08 0.20 0.36 Outbound roaming destinations
0.33
67

Similarly, retail margins also reflect a relatively wide spread across roaming destinations, with the highest and lowest markups varying by over 300 per cent. In particular, destinations with relatively low wholesale tariffs also seem to have especially high retail mark-ups Pricing analysis of roaming SMS retail margins (Singapore roamer travelling to ASEAN destinations)
USD per SMS $0.70 $0.60 $0.50 0.23 $0.40 0.29 $0.30 $0.20 0.33 $0.10 $0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Thailand Vietnam 0.19 0.33 0.18 0.2 0.12 0.08 0.11 0.46 0.36 0.24 0.36
Low IOT high retail mark-up Low IOT high retail mark-up
0.16
0.36
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Roaming charges are significantly higher than that of local SMS retail charges pricing disparities are mainly driven by a combination of high wholesale tariffs and retail mark-ups. For Indonesia, the disparity may be partially attributed to the relative low retail rates of local SMS Analysis of pricing disparities for roaming SMS (Singapore roamer travelling to ASEAN destinations)
Percentage 800%
718%

Highest pricing disparities
700% 600%
522% 554%
500%
405%
400%
300%
220%
248%
200% 100% 0% Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Thailand Vietnam
40% 60% 59% 75% 41% 25% 28% 72% 25% 75% 96% 45% 55% 98% 18% 82% 69% 31%
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Philippines
Thailand
Vietnam
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Comparison of roaming volumes versus roaming retail charges (Singapore roamer travelling to ASEAN destinations)
Number of messages 30,000,000 25,000,000 $0.56 20,000,000 $0.48 15,000,000 10,000,000 $0.44 9,939,000
USD per SMS
27,240,000 $0.64 $0.52 $0.48 $0.44 $0.44
$0.70 $0.60 $0.50 $0.40 $0.30 6,651,000 $0.20 1,644,000 $0.10 $0.00
5,000,000 426,000 0 Brunei Cambodia Indonesia Lao PDR Malaysia 453,000 69,000
2,970,000
Philippines
Thailand
Vietnam
SMS roaming volumes
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Roaming charges for mobile data are significantly more expensive than that of the home country charges in general, the average pricing disparity across roaming destinations is about 250 per cent
Pricing comparisons between roaming mobile data retail charges & home country mobile data retail charges (Singapore roamer travelling to ASEAN destinations)
USD per megabyte $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Brunei Cambodia Indonesia 6.1 6.1 6.1 18.2 15.7 16.2

Highest volume for Singapore data roaming
200% 15.7 16.2 13.6 13.6 15.7 150%
6.1
6.1
6.1
6.1
6.1
100%
50%
0%
Lao PDR Malaysia Philippines Thailand Vietnam
Average retail charge of local mobile data in Singapore Pricing disparity between roaming and local mobile data changes
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Generally, the wholesale tariffs across roaming destinations are either equivalent or more expensive than the retail rate of local mobile data. For some destinations, wholesale tariffs may be twice as costly as local data rates
Pricing comparisons between roaming mobile data retail charges & wholesale charges (Singapore roamer travelling to ASEAN destinations)
USD per megabyte $20 $18 $16 $14 $12 $10 $8 $6 $4 13.3 10.2 10.9 10.2 6.4 14.7 8.5 12.1 2.4 9.8 5.4 1.1 Outbound roaming destinations Average retail rate of local data in Singapore = $6.10 per megabyte
5.3
3.3 7.1
6.1
$2 $0 Brunei Cambodia
Indonesia
Lao PDR
Malaysia
Philippines
Thailand
Vietnam

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For some roaming destinations, the retail mark-ups are more than double of wholesale tariffs. In addition, countries with relatively low wholesale tariffs tend to have the highest retail mark-ups
Pricing analysis of roaming mobile data retail margins (Singapore roamer travelling to ASEAN destinations)
USD per megabyte $20 $18 $16 $14 $12 $10 13.3 $8 $6 $4 $2 $0 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines 12.1 9.8 5.4 2.4 5.3 3.3 1.1 Thailand Vietnam 7.1 10.2 10.2
Low IOT high retail mark-up
Average retail rate of local data in Singapore = $6.10 per megabyte
6.1
6.4 10.9 8.5
14.7
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Roaming charges are significantly higher than that of local data retail charges pricing disparities are mainly driven by high wholesale tariffs
Analysis of pricing disparities for roaming data (Singapore roamer travelling to ASEAN destinations)
155% 197% 164% 155% 164% 155%
150% 125% 100%

85% 76% 66% 60% 34% 15% 40% 35% 65% 67% 54% 46% 33% 24% 121% 121% 93%
75%
50% 25% 0%
7%
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Philippines
Thailand
Vietnam
Brunei
Cambodia
Indonesia
Lao PDR
Malaysia
Philippines
Thailand
Vietnam
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Comparison of roaming volumes versus roaming retail charges (Singapore roamer travelling to ASEAN destinations)
Megabytes
USD per Mb
800,000 700,000 600,000 500,000 400,000 313,770 300,000 200,000 100,000 9,180 0 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Thailand Vietnam 9,930 1,530 82,620 252,870 $18.24 $16.90 $16.19 $15.68 629,850 $16.19 $13.56 $13.56 $15.68
$20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 70,680 $2.00 $0.00
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Pricing analysis across ASEAN
Benchmarking of roaming retail prices SMS

Retail charges for SMS roaming are generally varied across ASEAN, with Laos being the most expensive destination for most roamers
Comparison of average retail price per roaming SMS across ASEAN countries
USD per SMS $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam Outbound Roaming Destinations
Highest average retail prices
Inbound Roaming Subscribers: Average Retail Price (USD):
Brunei $0.50
Cambodia $0.46
Singapore $0.50
Malaysia $0.40
Average retail charge of roaming SMS: Prices are derived by averaging the minimum and maximum roaming rates charged to the subscribers of selected mobile network operators Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Benchmarking of roaming wholesale rates SMS

Wholesale charges for roaming SMS appear to be fairly homogenous across most destinations. Generally, wholesale charges imposed by Laos seem to be significantly higher than that of other countries Comparison of average wholesale price per roaming SMS across ASEAN countries
USD per SMS $0.50 $0.45 $0.40
Highest average wholesale prices
$0.35
$0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam Outbound Roaming Destinations
Lowest average wholesale prices
Inbound Roaming Subscribers: Average Wholesale Price (USD):
Brunei $0.27
Cambodia $0.27
Singapore $0.27
Malaysia $0.25
Average wholesale tariff: Prices are derived by averaging the minimum and maximum roaming IOTs (SMS) charged by selected visiting operators to the countrys home operators Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Benchmarking of roaming retail margins SMS

Retail margins seem to be highly varied within each roaming destination. There appears to be no clear correlation between wholesale charges and retail margins Comparison of average retail margin per roaming SMS across ASEAN countries
USD per SMS $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam Outbound Roaming Destinations
Destinations with low wholesale charges appear to have relatively high retail margins
Inbound Roaming Subscribers: Average retail margin (USD):
Brunei $0.23
Cambodia $0.19
Singapore $0.22
Malaysia $0.15
Retail margin: Refers to the difference between the retail charge and wholesale charge of the roaming data Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
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Pricing disparities and possible drivers SMS

Pricing disparities average between 100 percent to 600 percent, with the highest pricing disparity occurring in Laos and Indonesia. For Indonesia, the high disparity may be partially attributed to its relatively low local SMS retail rates
Comparison of pricing disparity between roaming SMS retail charges & domestic SMS retail charges
Percentage 800% 700% 600% 500% 400% 300% 200% 100% 0% Brunei Cambodia Indonesia Lao PDR Brunei
Indonesia Margin IOT Margin Margin
Disparities more pronounced in these locations
Disparities are rather low, due to the relative high cost of local SMS
Malaysia Cambodia
Philippines
Singapore
Thailand Malaysia
Vietnam
Inbound Roaming Subscribers:

Outbound Inbound Brunei Cambodia Malaysia Singapore LEGEND: NA IOT IOT IOT IOT NA IOT Margin Brunei Cambodia
Singapore
Philippines IOT IOT IOT IOT Singapore IOT IOT IOT NA
Lao PDR IOT Margin IOT IOT
Malaysia IOT IOT NA IOT
Thailand IOT IOT IOT IOT
Vietnam Margin Margin Margin Margin
IOT accounts for more than 50% of roaming retail price
Retail margin accounts for more than 50% of roaming retail price
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Benchmarking of roaming retail prices Data

Retail charges for mobile data roaming appear to be highly disparate across ASEAN with retail rates for Brunei (as a roaming destination) reflecting the widest spread
Comparison of average retail price per megabyte of roaming mobile data across ASEAN countries
USD per megabyte $25.00

Most varied price range
$20.00
$15.00
$10.00
$5.00
$0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam
Inbound Roaming Subscribers: Average Retail Price (USD):
Brunei $14.27
Cambodia $14.01
Singapore $20.39
Malaysia $14.29
Average retail charge of roaming mobile data: Prices are derived by averaging the minimum and maximum roaming rates charged to the subscribers of selected mobile network operators Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
81
Benchmarking of roaming wholesale rates Data

Wholesale rates of mobile data roaming are widely varied across and within destinations. Generally, Laos and Philippines seem to be charging the highest wholesale rates
Comparison of average wholesale price per megabyte of roaming mobile data across ASEAN countries
USD per megabyte $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Brunei Cambodia Indonesia Lao PDR
Most varied price range
Highest average wholesale prices
Malaysia
Philippines
Singapore
Thailand
Vietnam
Inbound Roaming Subscribers: Average Wholesale Price (USD):
Brunei $9.76
Cambodia $9.64
Singapore $10.06
Malaysia $9.76
Average wholesale tariff: Prices are derived by averaging the minimum and maximum roaming IOTs (data) charged by selected visiting operators to the countrys home operators Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
82
Benchmarking of roaming retail margins Data

Retail margins appear to be highly disparate both within and across roaming destinations
Comparison of average retail margin per megabyte of roaming mobile data across ASEAN countries
USD per megabyte $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Brunei Cambodia Indonesia Lao PDR Malaysia Philippines Singapore Thailand Vietnam Outbound Roaming Destinations
Most varied margin range
Inbound Roaming Subscribers: Average retail margin (USD):
Brunei $5.20
Cambodia $5.05
Singapore $5.97
Malaysia $5.21
Retail margin: Refers to the difference between the retail charge and wholesale charge of the roaming data Source: Synovate surveys with ASEAN mobile network operators; Synovate analysis Synovate 2010
83
Pricing disparities and possible drivers Data

Pricing disparity is seen to be the highest amongst outbound subscribers of Brunei and Cambodia
Comparison of pricing disparity between roaming mobile data retail charges & domestic mobile data retail charges
Percentage 25000% 17500% 10000% 2500% 1500% 1000% 500% 0% Outbound Roaming Destinations
Wide range of disparities
Note: Graph is not drawn to scale due to the wide range of percentages
Brunei
Cambodia
Indonesia
Lao PDR
Brunei
Malaysia
Cambodia
Philippines
Singapore
Thailand
Malaysia
Vietnam
Inbound Roaming Subscribers:

Outbound Inbound Brunei Cambodia Malaysia Singapore LEGEND: IOT IOT Margin IOT NA IOT IOT Brunei Cambodia
Singapore
Philippines IOT IOT IOT IOT Singapore IOT IOT IOT NA
Indonesia IOT IOT IOT Margin
Lao PDR Margin IOT IOT IOT
Malaysia IOT IOT NA IOT
Thailand Margin IOT Margin IOT
Vietnam IOT IOT IOT IOT
IOT accounts for more than 50% of roaming retail price
Retail margin accounts for more than 50% of roaming retail price
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Summary of pricing analysis

Pricing disparities are deemed to be significant for both SMS and mobile data roaming services. These disparities may be largely attributed to relatively high wholesale tariffs charged across ASEAN countries
The pricing disparity between roaming and local charges appears to be significant for both SMS and mobile data services However, the price differential seems to be especially evident for mobile data. For example, a Malaysian subscriber may pay $1.50 per megabyte for local data usage, compared to $12-$20 per megabyte for roaming. For countries where local mobile data charges are significantly low (such as Cambodia and Brunei), the disparities may be as high as over 20,000% Mobile data is typically offered as a bundled package for local mobile plans as such, the cost per megabyte for local usage is often much lower than that of roaming (which is often charged at a per instance usage). This also applies to SMS, which is often offered as part of a bundled plan for local usage, but charged at per text message for roaming Pricing disparities seem to be especially high for Indonesia and Laos (as roaming destinations). For Indonesia, the disparities were especially pronounced in view of its relatively low local SMS retail rates (compared to other ASEAN countries). Whereas for Laos, the disparities may be attributed to Laos charging one of the highest wholesale tariffs within ASEAN While pricing disparities may be largely attributed to wholesale tariffs (i.e. wholesale tariffs comprise more than 50% of roaming retail rates for most countries), it was observed that countries sometimes charge relatively high retail margins even for destinations where wholesale tariffs were supposedly low Within each roaming destination, wholesale tariffs appear to be relatively homogenous across visiting countries. However, the range of wholesale tariffs seem to be more varied across roaming destinations. For example, the highest tariff is about $0.46, whereas the lowest rate is about $0.11 Furthermore, there seems to be little correlation between roaming volumes and wholesale tariffs - for example, countries with relatively low outbound SMS volumes such as Cambodia and Laos, tend to have similar or even higher rates than countries such as Singapore and Malaysia, which have much higher outbound volumes
Source: Synovate analysis
Synovate 2010
Implications Imperative to address the current prices of SMS and mobile data roaming services across ASEAN, particularly for mobile data
Overview of pricing disparities
Implications Opportunity for SMS wholesale tariffs to be further regulated across ASEAN Opportunity to introduce some form of retail price caps, so to as prevent operators from imposing unusually high retail margins (especially when wholesale charges are low)
Assessment of SMS pricing disparities
85
Summary of pricing analysis (contd)

Roaming retail margins also play a key contributing factor, particularly for mobile data where most mark-ups were observed to be substantially higher than local data rates
There are two distinctive groups of pricing disparities for mobile data:
Implications Opportunity for mobile data wholesale tariffs to be further regulated across ASEAN Potential for some extent of standardization of wholesale tariffs, so as to ensure rates are more equitable across ASEAN countries Opportunity to introduce some form of retail price caps, so to as prevent operators from imposing unusually high retail margins
Assessment of mobile data pricing disparities
Brunei and Cambodia: Disparities range from over 2,000% to over 20,000% (this extreme range is largely due to the countries very low local data rates, where one megabyte may be priced for as low as $0.10) Malaysia and Singapore: Disparities range from over 100% to over 1,200% Pricing disparities seem to be largely driven by wholesale tariffs, which are often higher than the countries local mobile data rates. For example, a Singapore network operator may pay $6-$14 per megabyte for wholesale tariff (while the average retail rate of local mobile data is $6.10) Wholesale tariffs appear to be highly disparate across roaming destinations. The lowest and highest tariffs may vary as much as $2 (lowest) to $14 (highest). Similar to the observation for SMS, wholesale prices do not seem to be directly affected by roaming volumes. For example, although the net roaming volumes between Malaysia and Brunei is significantly skewed towards Malaysia Bruneis average tariff to Malaysia ($10.75) is higher than Malaysias tariff to Brunei ($.21) Although pricing disparities are mostly attributed to wholesale tariffs, most countries tend to impose relatively high retail margins, which may be equivalent or even more substantial than their respective local retail rates

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86
Recommendations
Recommendations
Regulatory intervention may be required at the ASEAN level to facilitate the necessary cross-border coordination for addressing roaming pricing disparities CONSIDERATIONS
Roaming rates are significantly high compared to local charges, especially for mobile data services While roaming charges have become more affordable and predictable with the launch of flat rate data plans from mobile alliances, this development is mostly limited to selected ASEAN countries and leading network operators
RECOMMENDED ACTION
As the cause of most pricing disparities seems to be attributed to high wholesale tariffs, some regulatory intervention may be required at the ASEAN level to facilitate cross-border pricing coordination. Action should be focused on the possible reduction of wholesale tariffs, as well as to ensure more harmonized wholesale rates across countries At the country level, local regulation may be needed to monitor retail margins imposed by network operators, so as to ensure that roaming retail rates are more equitable, compared to local retail prices While some degree of price reduction and harmonization is required across ASEAN, complete price standardization is not advised (for both wholesale and retail charges). The approach for intervention needs to take into consideration each countrys SMS and mobile data market maturity, as well as roaming traffic across ASEAN Furthermore, unlike the EU, ASEAN does not have a common currency. As such, the operators exposure to any fluctuations in exchange rates will be increased if tariffs were to be tagged to a single rate
Regulation of SMS and mobile data roaming rates
Regulatory action should be tailored to the countrys mobile industry development
Wide disparities in the mobile data roaming markets across ASEAN are likely to result in winners and losers in the event of any standardization of roaming retail tariffs: Countries with nascent data roaming markets may find it difficult to cover the cost of network infrastructure and service investments, especially if roaming volumes are low Lower prices may not also necessarily translate to a substantial increase in roaming volumes, depending on the profile of operators customer base (i.e. percentage of corporate users versus leisure users)

Synovate 2010
88
Recommendations
Additional measures need to be taken to improve on pricing transparency, so as to minimize risks of consumer bill shock CONSIDERATIONS
Pricing transparency remains an issue as mobile users are often not aware of their data consumption and are therefore unable to effectively track their roaming expenditures Most roaming pricing models still operate on the basis of per instance usage. As such, mobile users may find it difficult to estimate data consumption when roaming, which may result in instances of bill shock Most network operators only indicate basic pricing information, but do not otherwise provide any further explanation as to how charges are being computed Roamers often do not have the means of tracking their data consumption. For example, most network operators do not have capped usage plans or bill caps. Also, users are not typically notified on their mobile data usages
RECOMMENDED ACTION
Potential areas for improving pricing transparency: Introduce bill caps (roamers to be alerted by their home network operator once their usage reaches a certain limit) Provide roamers free access (via SMS or customer hotline) to information such as service charges or on personalized data usage / expenditures Information on roaming charges are to be published on the network operators web sites, along with sufficient details to explain how charges are being computed Potential upgrade of billing systems to ensure network operators are able to track and send updates to their customers on realtime expenditures
Need to improve pricing transparencies
Synovate 2010
89
Learning from the EU Roaming Initiative
Overview of EU roaming legislation

The EU roaming regulation was extended in 2009 to address the excessive charges of SMS and mobile data roaming, as well as the lack of pricing transparency on tariff charges
Background of EU roaming initiative In 2008, the European Commission proposed to extend the 2007 regulation of international roaming services to cover both SMS and data roaming. The legislation was adopted on April 2009 The amendments extended the scope of the regulation to cover wholesale and retail pricing of SMS roaming services, as well as the wholesale pricing of mobile data roaming services. In addition, measures were also introduced to improve the transparency of retail roaming prices to prevent bill shock Before the legislation, the cost structure for providing roaming services did not justify the high retail prices charged in the market. Wholesale and retail price margins both constantly exceeded around the range of 800% Moreover, market forces and regulatory efforts at the national level have failed to achieve significant reductions in roaming prices. Limited competition between operators in the region and the lack of coordination at the national level has inhibited efforts to reduce prices of SMS and data roaming services The lack of pricing transparency, specifically for mobile data roaming, was identified as a key issue as customers are not often aware of the tariffs charged to them when roaming abroad. As such, there is a tendency for users to curtail their data roaming usage to prevent incidents of bill shock
Source: European Commission Synovate 2010
91
EU roaming legislation SMS roaming

Legislation aims to improve the affordability of SMS roaming by setting maximal price limits for both wholesale and retail charges
EUs approach to dispelling excessive roaming charges 1 Capping roaming tariffs (Eurotariff) for data
Terms of EU roaming legislation for SMS Visited network operators are required to charge a fixed wholesale rate as stipulated by the regulation At the retail level, home networks operators were required to inform its customers about the EuroSMS-tariff individually by 30 June, 2009. The EuroSMS tariff would be applicable to all new and existing roaming customers who have not opted for an alternative roaming tariff from 1 July 2009 Furthermore, incoming SMS messages will not be chargeable to the roaming customer For customers who purchase packages that comprise voice and non-voice roaming services, the regulation does not restrict the combination of a Euro-SMS-tariff with any other retail tariff Operators may also offer price bundles that typically involve attractive roaming rates for countries outside of the EU, but entail higher rates than that of the Euro-SMS-tariff for roaming within the EU. However, customers should be able to switch to the EuroSMS-tariff with minimum notice and without any additional charges
Wholesale charges
Setting a maximum average wholesale charge per SMS sent from a visited network. The price cap will include all inter-operator costs incurred by the visited network operator to provide the service, such as data clearing and interconnect costs Requiring mobile operators to offer roaming SMS services at a specified price known as the Euro-SMS tariff. The tariff will consider the costs incurred by operators to retail their services, so that prices can be set to provide sufficient margins for the operators
Retail charges
Source: European Commission

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EU roaming legislation Data roaming

Legislation aims to improve the affordability of data roaming by setting maximal price limits for wholesale charges, as well as to minimize the risks of bill shock by creating limits for billing amounts EUs approach to dispelling excessive roaming charges 1 Capping roaming tariffs (Eurotariff) for data Setting a maximum limit on the wholesale price charged per MB of data transmitted. The wholesale charge cap will be further reduced on a yearly basis till 2011 Terms of EU roaming legislation for data To help customers avoid receiving roaming bills that are higher than expected, they will be allowed to select a personalized limit on the amount they can be billed for data consumption, from 1 March 2010 to 30 June 2010 An automatic limit of 50 per billing period will be applied from 1 July 2010 for customers who have not selected a limit in the time provided Along with notifications at 80% and 100% usage levels, operators will provide customers with information on the following: - Procedures to continue using data services - The cost of additional data consumed - Handling of downloaded data, if the customer does not wish to continue the service after the usage cap has been exceeded When 100% of the limit is reached, the operator will cease to provide and charge for data roaming services, unless a roaming customer requests to continue the use of those services
Wholesale charges
Creating a limit on how much a customer can be billed for data roaming consumption
Wholesale charges
Requiring operators to set a limit on how much a roaming customer can be billed per period for data roaming services. Roaming customers will be notified in advance of the corresponding data volume stipulated by the limit
Limit notification
Providing roamers better control by notifying them when they reach 80% and 100% of their limit. Roamers will then be instructed on how to continue using data services while roaming
Separate price caps are not required for customers who subscribe to time-based pricing arrangements (e.g. flat-rate-pricing offers of X/month), which effectively cap their charges
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Synovate 2010
EU roaming legislation pricing transparency

Measures for data roaming were also put in place to address the issue where the lack of customer knowledge and difficulties in usage tracking may contribute to bill shock Measures to regulate pricing transparency 1 Creating a limit on how much a customer can be billed for data roaming consumption Access to information such as: - Service-specific maximum charges - A free hotline from which a customer can obtain personalized information on SMS and data roaming usage Terms of EU roaming legislation for data Measuring volume of data usage Customers may not understand how much data is transmitted for certain services, and may therefore find it difficult to assess the cost of usage. For example, for streaming services, customers may not be aware of the number of data sessions incurred Data usage may be rounded up in blocks (e.g. per 10 KB), which means shorter sessions may be charged higher than expected Disparity between expected and actual usage due to unintended data consumption (e.g. data retransmission, software applications, maintenance downloads) Predictability of usage cost Customers may have difficulties tracking their data usage when abroad. Domestic data services are often charged within a bundle at a monthly fee. Hence, customers may not be able to estimate their volume usage or the charges at per KB when roaming
Providing basic Information should be delivered whenever a information roamer connects for the first time to a foreign network through SMS, via email or a pop-up window on the computer Customers can choose to opt-out of receiving such information Access to information such as: - Ways to avoid uncontrolled data usage Providing Limit Additional notification Data transmission should only be allowed Information upon consent from the roamer Information should be delivered whenever a roamer connects for the first time to a foreign network through SMS, via email or a pop-up window on the computer
Synovate 2010
- Size and data usage levels of different roaming services (e.g. MMS, email)
94
Euro-tariff charges
Wholesale charges for data services are subject to further reductions in the subsequent years
Before 1 July, 2009
1 July, 2009
1 July, 2010
1 July, 2011
Wholesale charges SMS ( per SMS) Retail charges SMS ( per SMS)
0.16 (2008Q1)
0.04
0.04
0.04
0.285 (2008Q1)
0.11 (to send) 0 (to receive)
Wholesale charges data ( per MB)
2 (2008Q1)
0.80
0.50

Synovate 2010
95
Appendices
1. Status of 3G network roll-out across ASEAN 2. Retail offerings for data roaming 3. Additional pricing analysis for data roaming
Appendices
Appendix 1. Status of 3G roll-out across ASEAN - as of June 2010

Country Singapore Operator SingTel Starhub M1 Maxis Malaysia Celcom DiGi Smart Philippines Globe Sun Brunei B-Mobile DSTcom AIS Thailand DTAC Truemove Telkomsel Indonesia Indosat Excelcomindo Cambodia Laos MobiTel (Cellcard) TMIC (hello) Lao Telecommunications Tigo Viettel Vietnam Vinaphone Mobifone
Source: GSMA
Synovate 2010
HSDPA Status In Service In Service In Service In Service In Service In Service In Service In Service In Service In Service In Service In Service In Trial In Trial In Service In Service In Service In Service
Launch Date May-07 Aug-07 Dec-06 Sep-06 Jun-06 Mar-09 Jan-07 May-06 May-08 Mar - 08 May-08 Dec-08
Additional information
Apr-07 Dec-06 Nov-06 Mar-08 3G services currently available 3G services currently available
In Deployment In Deployment Planned
Dec-09 Oct-09 Dec-09
3G services currently available 3G services currently available 3G services currently available
98
Appendices
Appendix 2. Retail offerings for data roaming - as of June 2010

Retail charging models
SMS Country Domestic pricing models Brunei Roaming pricing models Domestic pricing models Roaming pricing models Bundled packages: 100 to Price per SMS: ~ BND 0.55 for Service-based pricing: 1.5GB Price per MB: ~ BND10 unlimited SMS are offered with each SMS sent within ASEAN to unlimited data usage at a BND30 services such as MMS, voice monthly fee of BND 30 BND and data, at a fixed monthly fee 60. Excess charges are priced (~ BND 35 BND 165) at ~ BND 0.2 per MB Bundled packages: 1.5GB to unlimited usage of data is offered with monthly bundled packages (~ BND 35 BND165) Cambodia Price per SMS: ~ USD 0.03 Price per SMS: ~ USD 0.60 Service-based pricing: ~USD Price per MB: ~ USD 15 per SMS (sent within operators International roaming: A fully 0.1 per 100 KB USD 20 network) and ~ USD 0.05 per refundable deposit or corporate Bundled packages: Free SMS (sent to different operator guarantee is required to 20MB to unlimited data usage networks) activate the service is offered with monthly bundled packages (~ USD 9 USD 69). Excess charges are charged for every 100 KB Bundled packages: 50 to 200 SMS are offered with services such as voice, at a fixed monthly fee (~ IDR 50,000 to IDR 150,000) Price per SMS: ~ IDR 4,200 International roaming: No activation fees but a deposit is required Service-based pricing: Monthly packages with 1.25 GB to unlimited usage are offered for a fixed fee (~ IDR 200,000 to IDR 1,500,000). Usage of data is charged at IDR 1.00 per KB for excess usage Price per MB: ~IDR 80,000 IDR 160,000 International roaming: No activation fees but a deposit is required Mobile data
Indonesia
Source: Selected operators websites across ASEAN; mystery shopping with operators customer service officers
Synovate 2010
100
Appendix 2. Retail offerings for data roaming - as of June 2010 (contd)

SMS
Country Domestic pricing models Lao PDR Bundled packages: SMS is offered with services such as voice and data, at a fixed monthly fee (~ LAK 250,000 LAK 750,000) Service-based pricing: ~LAK 250 per SMS is charged for SMS sent to other networks Malaysia Roaming pricing models Price per SMS: ~ LAK 3,500 LAK 8,500 International roaming: A deposit of ~LAK3,500,000 is required to activate roaming service Domestic pricing models Bundled packages: 10MB 200MB of data is offered with monthly bundled packages (~ LAK 250,000 LAK 750,000). Excess usage is charged at ~ LAK1 per KB Roaming pricing models Service based pricing: ~LAK 1,700 LAK 5,000 is charged per 15 KB International roaming:, A deposit of ~ LAK3,500,000 is required to activate roaming service Price per MB: ~MYR22 MYR82
Mobile data
Bundled packages: ~ MYR Price per SMS: ~MYR 2 0.05 MYR 0.10 is charged per International Roaming: A SMS. This is offered with refundable deposit of ~ MYR services such as voice and 300 is required to activate MMS, at a fixed monthly fee roaming service (~MYR 20 MYR 500)
Service-based pricing: Volumes between 1 GB to 5GB can be purchased for MYR 5 MYR 22. Unlimited data plans are priced between MYR 58 MYR 149 Bundled packages: 500MB to 5GB of free data is offered with services such as MMS, SMS and voice at a fixed monthly fee (MYR88 MYR375). Excess charges are capped at MYR 250
International Roaming: A refundable deposit of ~MYR 300 is required to activate roaming service
Synovate 2010
101

SMS Mobile data Roaming pricing models Price per SMS: ~PHP 25 International Roaming: No additional fees are required for service activation Domestic pricing models Service-based pricing: Unlimited volume charged at a fixed daily, weekly or monthly fee (~ PHP 50 PHP1,200) Bundled packages: Free 20 hours of data usage are offered with services such as MMS, SMS and voice, at a fixed monthly fee (~PHP 450 PHP 5,499) Price per SMS: ~SGD 0.60 International Roaming: A one- time registration fee (~SGD20) and monthly subscription of ~SGD 5 SGD 10 Roaming pricing models Price per MB: ~PHP 370 PHP 850 International Roaming: No additional fees are required for service activation
Country
Domestic pricing models Philippines Bundled packages: 75 1200 SMS are offered with services such as voice and data at a fixed monthly fee (~ PHP 500 PHP 10,000)
Singapore
Bundled packages: 50 to unlimited SMS are offered with services such as voice and data at a fixed monthly fee (~ SGD 15 SGD 205)
Service-based pricing: SGD 5 Price per MB: ~SGD 10 SGD 118 per month for SGD 30 10MB to unlimited usage International Roaming: A Bundled packages: 1GB to one-time registration fee and unlimited amount of data is monthly subscription of ~SGD offered with services such as 5 SGD 10 SMS and voice at a fixed monthly fee (~ SGD 30 SGD 205). Caps of ~SGD 40 may be levied on excess data usage
Synovate 2010
102

SMS Mobile data Roaming pricing models Domestic pricing models Roaming pricing models
Country
Domestic pricing models Thailand Bundled packages: Unlimited Price per SMS: ~THB 12 SMS are offered with services International roaming: No such as voice. This is charged registration fee at a fixed monthly fee of ~THB 299 Service-based pricing: THB 1 to THB 5 per SMS Service-based pricing: Data Price per MB: ~THB 100 to plans are offered in hourly, THB 590 daily and monthly packages International roaming: No from ~ THB 20 to THB 1,800. registration fee Price per MB varies from THB 0.18 per MB to THB 1.7 per MB Bundled packages: 500MB 1GB is offered with services such as MMS, SMS and voice charged at a fixed monthly fee of ~THB 399 THB 699
Vietnam
Bundled packages: 50 350 Price per SMS: ~VND 7,600 to Service-based pricing: ~ VND Price per MB: ~VND 150,000 SMS are offered with services VND 8,500 0.25 VND 5 is charged per to VND 230,000 such as voice at a fixed KB. In a separate scheme, ~ monthly fee (VND 156,000 VND 450 VND 900 is VND 585,000) charged per minute of connection Service-based pricing: ~ VND 100 350 per SMS Bundled packages: Up to 300MB is bundled with services such as voice at a fixed monthly fee (~ VND 156,000 VND 585,000)
Synovate 2010
103
Appendices
Analysis of pricing disparities for data roaming

How do we determine if roaming retail prices are high or low?
The following diagram provides another perspective for assessing pricing disparity. Here, the reference point for domestic usage is the retail rate of local mobile data in the outbound country. In the earlier pricing analysis (as illustrated in slide 9), the reference point for domestic usage is the retail rate of local mobile data in the home country. The purpose of using the context of the outbound destination is to assess the significance of roaming charges, relative to that of possible domestic substitutes. The next few slides will showcase the respective country-level analysis. Roaming retail price - Cost of domestic usage = Price disparity Roaming mobile data pricing disparity E.g. Subscriber in Country A visits Country B (Outbound Country) Country B
Roaming mobile data usage in Country B
Retail charge of roaming mobile data paid by Country A subscriber (For usage in Country B)
Country B
Local mobile data usage in Country B
Country B subscriber
Retail charge of local mobile data paid by Country B subscriber (For usage in Country B)
=
Synovate 2010
105
Pricing comparisons between roaming mobile data retail charges & domestic mobile data retail charges (Brunei roamer travelling to ASEAN destinations)

Note: Data on Laos was not provided
$20 22.5 $15 13.4 $10 12.6 6.1 $5 0.1 $0 Cambodia Indonesia Malaysia Philippines Singapore Thailand Vietnam 0.4
14000% 12000% 10000% 14.2 8000% 6000% 4000%
15.8
15.2
1.5
11.0
0.4 0.1 0.3
2000%
0%
Average retail charge of local mobile data in the outbound destination Pricing disparity between roaming and local mobile data changes
Retail charge of roaming mobile data in Brunei
Notes: 1. Average retail charge of roaming mobile data: Prices are derived from the prevailing roaming rates charged to the roaming subscribers of selected mobile network operators 2. Average retail charge of local mobile data: Prices are derived by averaging the minimum and maximum local rates charged to the subscribers of selected mobile network operators 3. Pricing disparity: Estimated by taking the difference between the maximum retail charge of roaming data and the average retail charge of local data Source: Synovate surveys with ASEAN mobile network operators (data on Laos was not provided in the questionnaire submitted by Brunei); Synovate analysis Synovate 2010
106
Pricing comparisons between roaming mobile data retail charges & domestic mobile data retail charges (Cambodian roamer travelling to ASEAN destinations)
$25
14000% $20 $15 $10 10.2 $5 0.2 $0 3.1 0.4 Indonesia 0.1 Lao PDR 1.5 0.4 Philippines Singapore 0.1 Thailand 0.3 Vietnam 2000% 22.0 17.9 14.1 6.1 9.7 24.1 12000% 10000% 16.4 8000% 6000% 4000%
0%
Malaysia
Brunei
Retail charge of roaming mobile data in Cambodia
107
Pricing comparisons between roaming mobile data retail charges & domestic mobile data retail charges (Malaysian roamer travelling to ASEAN destinations)
$20 20.5 18.4 $15 12.3 18.4 12000% 10000% 8000% $10 12.3 13.3 6.1 $5 2000% 0.2 $0 Brunei Cambodia Indonesia Lao PDR Philippines Singapore Thailand Vietnam 0.1 0.4 0.1 0.4 0.1 0.3 12.3
12.3
6000% 4000%
0%
Retail charge of roaming mobile data in Malaysia
108
Pricing comparisons between roaming mobile data retail charges & domestic mobile data retail charges (Singapore roamer travelling to ASEAN destinations)
USD per megabyte $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Brunei Cambodia Indonesia 18.2 15.7 16.2
Difference between roaming & local charges 18000% 16000% 14000% 15.7 12000% 13.6 13.6 10000% 8000% 6000% 4000%
15.7
16.2
1.5 0.2 0.1 0.4 0.1 Lao PDR Malaysia 0.4 Philippines 0.1 Thailand
0.3
Vietnam
2000%
0%
Retail charge of roaming mobile data in Singapore
109
Our curiosity is all yours.
Synovate 2010
110

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International Roaming

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Study on the International Roaming (SMS & Data) Market in ASEAN Final report

8th January 2011

Project background and objectives

Indonesia Lao PDR Myanmar

Singapore Thailand Vietnam

Terminology used in this report

Inter-operator tariff (IOT)

Wholesale price charged by visiting operator to home country operator

Retail margins Pricing disparity

Analysis of pricing disparities

Roaming SMS pricing disparity

E.g. Subscriber in Country A visits Country B (Outbound Country)

Analysis of pricing disparities (contd)

Roaming mobile data pricing disparity

E.g. Subscriber in Country A visits Country B (Outbound Country)

Profile of current market landscape across ASEAN

Other North regions America 48 mn 58 mn

Asia Pacific 116 mn

Source: GSM World; * Wireless Intelligence; ^AdMob Synovate 2010

Profile of current market landscape across ASEAN

Data not provided Legend Mobile Revenues (USD mn)

Overview of SMS and mobile data developments

Key observations on mobile data & SMS developments

Mobile voice 14.0%

Drivers and barriers for data roaming

Barriers to roaming SMS and mobile data usage

Retail price trends for data roaming

Comparison of domestic and roaming retail models

Source: Press articles; Synovate interviews and analysis Synovate 2010

Retail offerings for data roaming

6. Maxis Communications (Malaysia)

10. Taiwan Mobile (Taiwan)

Source: Bridge Alliance website, SingTel web site

Retail offerings for data roaming (contd)

Transparency on data roaming prices

Increasing access to information on roaming usage charges

Analysis of pricing transparency metrics

Inter-operator relations on roaming arrangements

Key determinants on inter-operator tariffs (IOT)

Retail billing and invoicing

Overview of SMS and mobile data developments

Key observations on mobile data & SMS developments

Mobile voice 14.0%

Overview of SMS and mobile data developments

Mobile operators B-Mobile

Charging models for roaming SMS Charges per SMS

Key observations on pricing trends

Analysis of SMS roaming charges

USD per SMS $0.80

Outbound Roaming Destinations

Difference between roaming & local charges 800% 700%

600% 500% 400% 300% 200% 100%

Average retail charge of local SMS

Average retail charge of roaming SMS

Pricing disparity between roaming and local SMS charges

Analysis of SMS roaming charges

Average wholesale tariff of local SMS

Average retail margin of roaming SMS

Average wholesale tariff of roaming SMS across ASEAN

Analysis of SMS roaming charges

Average retail margin of roaming SMS

Average wholesale tariff of local SMS

Average retail margin across ASEAN

Summary of findings - SMS roaming charges