Mobile money business development at Vietnam mobile service Trần Thị Thanh Nga Khoa Quản trị Kinh doanh Luận văn Thạc sĩ ngành: Kinh doanh quản lý; Mã số: 60 34 05 Người hướng dẫn: TS Trần Đoàn Kim, ThS Hà Nguyên Năm bảo vệ: 2010 Keywords: Quản trị kinh doanh; Thông tin di động; Dịch vụ thông tin; Tiền tệ Content TABLE OF CONTENTS ACKNOWLEDGEMENTS i List of Figures ix List of Tables xi List of Abbreviations xii Introduction 1 Research Problems Objective and aim of thesis Research questions Scope of work Data resource Methods Significance of thesis Thesis limitation Expected results 10 Structure of thesis Chapter 1: Mobile money theoreticaloverview 1.1 Mobile Money (MM) 1.1.1 The convergence of Mobile service andfinancial service 1.1.2 What is Mobile money service ? 1.1.3 Opportunities for Mobile money services 1.2 Benefit of Mobile moneyservices 13 1.2.1 To Mobile operators 13 1.2.1.1 Direct benefits 13 1.2.1.2 Indirect benefits 13 1.2.2 To Customers 15 1.2.3 To Banks 17 1.2.4 To Others 18 1.3 Models for Mobile money business 19 1.3.1 Operator - Centric 19 1.3.2 Bank - Centric 21 1.3.3 Payment Company centric 23 1.4.1 Key success factors for mobile money business 24 1.4.2 Regulation 24 1.4.3 Product 25 1.4.4 Promotion 27 1.4.5 Distribution channel management 28 Chapter 2: International MNOs 30 mobile money business deployment 30 2.1 Entry mobile money strategy for MNOs 30 2.1.1 Market strategy 30 2.1.1.1 Market analysis (preliminary assessment) 30 2.1.1.2 Marketing strategy 31 2.1.2 Partnership model 43 2.1.3 Technical and IS analysis 46 2.1.4 Distribution agents 49 2.1.4.1 The important of agent networks 50 2.1.4.2 How big should an agent network be? 50 2.1.4.3 Characteristics of a good agent network 53 2.1.4.4 Mobile money agent network model 56 2.1.4.5 Main obligations are contractually imposed on agents 58 2.1.4.6 Incentivizing mobile money agents 58 2.2 Mobile money case study - M PESA (Kenya) 61 2.2.1 Market situation 61 2.2.2 M-PESA Mobile money business 63 2.2.3 M-PESA key successful factors 68 Chapter 3: The case of Vietnam mobile service company 70 3.1 Introduction of Vietnam Mobile Service Company 70 3.1.1 Overview about Mobile Market 2010 70 3.1.2 About Vietnam Mobile Service Company (VMS) 72 3.1.2.1 Foundation and Development of VMS 72 3.1.2.2 Company Structure 73 3.1.2.3 Business Activities 74 3.2 Mobile money - Opportunities for VMS? 75 3.2.1 Market analysis 75 3.2.1.1 Opportunities of mobile money services to bank the unbanked 75 3.2.1.2 How should Mobile money in Vietnam be? 77 3.2.1.3 How to pricing the unbanked? 78 3.2.2 Regulation condition 82 3.2.3 Technical and IS 84 3.2.3.1 VMS current technical and Information system 84 3.2.3.2 Technical applied for mobile money 85 3.2.4 Distribution channel 86 3.2.4.1 VMS Distribution channel 86 3.2.4.2 Develop mobile money distribution channel 89 3.2.4.3 Incentive policies 92 3.3 Research Findings 94 3.3.1.1 Customer‟s need 95 3.3.1.2 Products‟ specifications 98 3.3.1.3 Pricing 100 3.3.1.4 Distribution channel interest and commission 101 3.4 Discussion 103 3.4.1.1 Customer‟s demand 103 3.4.1.2 Products offering and pricing 104 3.4.1.3 Retailers‟ interest 105 3.4.1.4 Conclusion 105 Chapter 4: Mobile money services business development proposal for VMS107 4.1 Mobile money business development proposal for VMS 107 4.1.1 Partnership model 107 4.1.2 Market strategy 108 4.1.2.1 Products 109 4.1.2.2 Marketing 111 4.1.2.3 Service pricing and agent commission 112 4.1.3 Distribution 117 4.1.4 Business organizational structure 121 4.2 Risks & challenges for VMS when deploy mobile money services 123 4.3 Recommendations for Theory 126 4.4 Recommendations for Further Research 126 REFERENCE 127 APPENDIX 127 APPENDIX 135 References: REFERENCE Vietnamese Nghi dinh so 64/2001/ND-CP ve hoat dong toan qua cac to chuc cung ung dich vu toan, Chinh phu ban hanh 20/9/2001 English Alex Comninos, Steve Esselaar, Ali Ndiwalana & Christoph Stork (2008), „M- banking the Unbanked‟, vol 2008 Policy Paper 4, Research ICT Africa The Alliance for Financial Inclusion (AFI) (2010), Case study „Enabling mobile money transferThe Central Bank of Kenya‟s treatment of M-Pesa‟ Amdocs and Frost & Sullivan (2010), „The Connected World Survey The Emerging Markets Perspective‟, Key Insights Beth Jenkins (2008), „Developing mobile money ecosystems‟, Policy studies, CSR Initiative, Harvard Kennedy University Britni must and Kathleen ludewig (2010), „Mobile money: cell phone banking in developing countries‟, Policymatters Journal Business Monitor International (2010, Q3), „Vietnam Telecommunications Report Q3 2010‟ BuzzCity (2010), „Global survey investigating consumer mobile behavior‟, the 5th research Claudia McKay, Mark Pickens (2010), „Branchless banking pricing analysis‟, CGAP report 9 Consultative Group to Assist the Poor (CGAP) (2009), report on Measuring Access to Financial Services around the World 10 Consultative Group to Assist the Poor (CGAP) (2009), report on „Window on the Unbanked: Mobile Money in the Philippines‟ 11 Consultative Group to Assist the Poor (CGAP) (2010), report on „Branchless Banking 2010: Who‟s Served? 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Chapter 4: Mobile money services business development proposal for VMS107 4.1 Mobile money business development proposal for VMS 107 4.1.1 Partnership model 107 4.1.2 Market strategy... Introduction of Vietnam Mobile Service Company 70 3.1.1 Overview about Mobile Market 2010 70 3.1.2 About Vietnam Mobile Service Company (VMS) 72 3.1.2.1 Foundation and Development of