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Trang 1SAIGON TELECOMMUNICATION & TECHNOLOGIES
CORPORATION (SAIGONTEL)
INVESTMENT PROJECT OF WIFI MARKETING SERVICE PROVISION
SYSTEM
SAIGONTEL, July 2018
Trang 2SAIGON TELECOMMUNICATION &
SYSTEM
1 INTRODUCTION
In 2018, the Information and Communications technology (ICT) sector continues tomaintain its high economic growth rate, gain many important achievements, becoming a brightspot of the economy in the context when Vietnam economy has been still facing many difficulties
At the same time, IT has created spillover effects, promoted the development of many industries,many economic and social sectors, contributing in creating more jobs and improving the income oflabors
Internet is a development trend of a modern world, a method of rapid information exchange,creating sustainability and improving the quality of life of people and society In particular, in thecontext when Vietnam economy has been still facing many difficulties, the Internet is more andmore clearly demonstrating its role in helping enterprises reduce costs, reach customers quicklyand rise to escape from crisis, continue to exist and grow
The role of the Internet in today's life is a global information network, formed on the basis ofconnecting computers, websites, electronic information sites across the planet, the advent anddevelopment of the internet- information superhighway, global connection is considered the thirdexplosion and promotion, opening a new era for human communication and development, the birth
of the internet is a great advance of technical science, it links all the world through the computer,one of the greatest achievements of the internet is the premise that facilitates the birth of a newtype of journalism
It’s seen that today Internet platform-based activity that is Wifi marketing has been appliedstrongly with a lot of new ways and methods to better suit the rapid change of technology and way
of promotion on the internet platform In the process of operation and development of Wifi
Trang 3marketing, there are many technologies and methods that have been created but not anything issuccessful There are also technologies that emerge splendidly but then gradually fade away tobecome the platform for newer technologies Therefore, Wifi marketing is the most importantthing that leads to drastic changes not only in the past but also at present.
Therefore, the strategy to promote the development of Wifi marketing services is theactivities of promoting your products, services or brands through digital viral tools to achievebusiness objectives and bringing many practical benefits for people and contribute in promotingthe socio-economic development
2 OVERVIEW
2.1 Overview and definitions of Wifi marketing
Wifi Marketing is a combination of Social Media and Wifi Marketing Simply, WifiMarketing is when you access a free WiFi at a store, location or maybe WiFi network of anenterprise, the interface of pop-up to advertise products and brands as well as information aboutthat enterprise will present on the screen This ad is placed on a website
Enable to use that WiFi network, users can click on a certain link on the interface, view allclips, share on social networks, etc or any interaction with such an advertisement WifiMarketing is considered to be the fastest way to bring product information to users, when they canimmediately know the product information when accessing that free WiFi network
WiFi Marketing is a form of advertising via free wifi network released by an enterprise thatallows users to use the internet at a high speed, but instead of using a password, they need tointeract with ads before accessing Internet
With WiFi Marketing 3.0 technology currently used popularly in developed countries, theinteraction between users and wifi advertising is very simple and increasingly friendly
In 2017, the solution of WiFi Marketing 3.0 was officially launched and Linkyfi is one ofthose WiFi Marketing 3.0 solutions
2.2 Development and actual status of Wifi marketing
2.2.1 Use of Wifi Marketing for independent locations:
For independent locations, it is only necessary to add Wifi Marketing device betweennetwork modem and available WiFi system Promotion content will be stored and configureddirectly on Wifi Marketing device
Trang 4Advantages: easy to deploy, bring high efficiency when promoting products.
Disadvantages: only applicable in one location Applicable to single business units, food stores,
coffee shops,
2.2.2 Operation model for multiple locations:
In order to operate, it is necessary to install Wifi Marketing device between the networkmodem and the available Wifi system of the locations Marketing content will be stored as a website
on the network and configured on Wifi Marketing device that will lead the link to that website whenusers access
Advantages: applicable to locations in the same system If you want to change the content, just
change on the website It’s suitable for large-scale enterprises with many branches or locations faraway from each other
Disadvantages: the implementation process becomes more complex.
2.2.3 Benefits of using Wifi Marketing
Wifi Marketing works via web platform and uses web browser to display messages And that willmake the ability to access users become higher When you visit a website and pop-up ads appearbelow or above, and of course sometimes such ads will make us feel uncomfortable
Trang 5And Wifi Marketing is completely different when the ads interface appears when you connect to thatWiFi.
2.2.4 More stable WiFi network speed:
Wifi Marketing devices will limit the bandwidth as well as the amount of time each user uses At theend of the specified usage period, users can continue to interact with that advertising interface and useWiFi
2.2.5 Faster Product-related messages to customers:
As mentioned, the pop-up ads will include all most brief information about the product or brand sothat users can be aware of the product Or it’s possible to add new promotional, service or productinformation, etc
Some enterprises also incorporate social networks as Facebook, Twitter or Instagram, asking users toshare that information to be able to use WiFi And thus information about products has been promotedmore widely
2.2.6 Attraction of customers to products:
Through pop-up advertising, enterprises can collect information from customers Thanks to that, theycan orient groups of customers the enterprises want to target to and deploy customer care andmarketing work after sales
Trang 6Besides, using Wifi Marketing will attract customers For example, in a place where you can’t placeadvertising banners for products, through Wifi Marketing-based advertising, the users can use freeWiFi while you can promote your products.
The above is some necessary information about Wifi Marketing service, brand promotion throughfree Wifi network access By this way, the products you want to promote will be accessed in a fastermanner to users or even shared on social networks
2.3 Current situation of operation and characteristics of Saigon Telecommunication
Technology Joint Stock Company.
Saigon Telecommunication & Technologies Corporation was established on May 14, 2002 withthe orientation of developing and providing telecommunications services in the domestic andinternational scope and other technological products and services
The organizational structure of the Company includes: Board of Directors, Board ofManagement and a staff of more than 300 managers, engineers, bachelors, experienced techniciansthat are trained formally, active, energetic, always try their best to assume the business mission ofthe Company: "Providing domestic and international telecommunications services to meet the needs
of enterprises and individuals"
The target market of the project is to serve the connection of Wifi marketing service nationwideand focus mainly on 04 big cities: Hanoi, Ho Chi Minh City, Da Nang and Can Tho
This year of 2018, wifi marketing is a form of approaching customers through wifi network thathave begun to step into and showed quite strong development signs in Vietnam
3 NECESSITY OF INVESTMENT
3.1 Legal basis
2015
December 28, 2017 on the provision of telecommunications services
- Based on the plan of Internet platform-based service development in 2018 - 2023 ofSAIGONTEL nationwide
3.2 Necessity of investment in the system of providing Wifi marketing services
The explosion of Internet technology forces Vietnamese enterprises to change their strategy fromtraditional marketing to Digital Marketing (Facebook, Twitter, e-commerce) and Wifi Marketing ifthey don't want to be forgotten by users The result of a survey conducted by OpenSignal analysisfirm in 2017 showed that Vietnam ranked 33 out of 193 countries with the most Internet usage in theworld Vietnamese Internet users spent 50% of their online time through electronic devices such as
Trang 7Ipad, Laptop, Notebook, the remaining 50% via mobile network, more than 75% of the informationused and updated by users on Electronic devices by using Wifi.
Many Vietnamese enterprises invest a lot of money to use ads on websites or Social Media.This not only makes the enterprises spend a large amount of money but also the opportunity topersuade internet users to use their products is only at a moderate level if these users are not targetcustomers But with Wifi Marketing, this issue can be solved completely and optimally Each device
of SmartWifi can limit the bandwidth and time of each user When the time is up, users can comeback to interact with ads to continue using wifi
Wifi Marketing-based marketing online trend has been a new advertising solution for theVietnamese business community for the past 5 years Thereby, Internet users can access free wifi atthe broadcast location after interacting with a pop-up ad of an enterprise This form of advertisingnot only helps the enterprises increase their impression with users but also supports the collection,processing and classification of information to help them build their potential customer segments.The deployment of Wi-Fi Marketing systems helps enterprises to monitor remote connectionpoints, monitor the number of people accessing and analyze Wifi networks around to selectappropriate advertising forms
In short, Wi-Fi Marketing is a unique marketing solution that brings great efficiency to smalland medium-sized enterprises and individual users
SAIGONTEL has step by step enhanced its position from internet service provider (ISP) tointernational carrier with a variety of services Therefore, the investment in the system of providing
wifi marketing services through exclusive cooperation with partners is really necessary.
Trang 8Wifi Marketing is an effective marketing solution for enterprises today
Socio-economic efficiency of the project:
Project: Wifi marketing service provision system investment in addition to the economic
benefits, the Project also brings practical social benefits:
- Contribute in promoting Digital Marketing tools on the Internet platform, save costs forcustomers and improve business performance of enterprises
- SAIGONTEL employs FTTH fiber optic lines to connect points (expected to accumulativelydevelop 12,000 Access Points) nationwide, is the foundation for developing customizedservices, added services based on Internet Bring customers the most advanced and effectivetechnology-based services
4 SUMMARY OF THE PROJECT
Project name: Wifi marketing service provision system investment
Trang 94.1 Project Owner: Saigon Telecommunication & Technologies Corporation
4.2 Project implementation unit: International Telecommunications Center - SGN
4.3 Project site: Invest in management equipment system, connect and provide services from
SAIGONTEL's Access Points at main points: HCM - HNI - DNA - CTO
4.4 Form of project investment: New investment
4.5 Cooperation form: sign exclusive cooperation contracts with partners
4.6 Estimated project implementation time: 8 weeks.
Deployment of investment in Wifi marketing system
Personnel Number of
implementing weeks
1
2
3
4
make investment plan
acceptance
- SGN Center
- Provided by SGN Center in
coordination with TT
KT – Partner
- Provided by SGN Center in
coordination with TT
KT – Partner
- Provided by SGN Center in
coordination with TT
KT – Partner
4.7 Content, scale of the investment:
4.7.1 Content
scale of 12,000 Access Point devices nationwide
2018: Invest in a brand new equipment system:
+ Access Point device: 3,000 AP
+ VirtualSmartZone WLAN controller device system: 01 system
Trang 10+ License for controller includes Support: for 3,000 APs
+ Server equipment (Virtual SmartZone): 02 systems
2019: Invest in another brand new 01 equipment system including as follows:
+ Access Point device: 9,000 AP
+ License for controller includes Support: for 9,000 APs
4.7.2 Scale
Total investment: Estimated total investment cost of Wifi marketing service system is VND
165,812,000,000 (inclusive of VAT) It’s divided in two phases in 2018 and 2019
The project is expected to be implemented within 5 years, from 2018 to 2022
Proportion of capital contribution to the project:
- Credit capital accounts for 70% of total estimate: VND 95,924,000,000
5 NOTES TO THE PROJECT
5.1 Market analysis:
Vietnam is a country with dense population, ranking 14th in the world with approximately 93.6million people, of which the urbanization rate is 31% As of January 2018, Vietnam had 50.1million Internet users, accounting for 53% of the population, up 7% compared to 2017 The number
of Internet users is considered high in the world, but the proportion of users is still at an averagelevel Vietnam has 46.3 million social network users, accounting for 49% of the population
The number of mobile subscribers reach 124.7 million, with more than 41 million subscribersregularly uses This is a highlight of the global technological trend, there are more mobile users tosurf the web
Along with the international trend, mobile phone users in Vietnam also account for a largeproportion due to its compactness, portability (mobility), and many features to meet the needs ofmost users in the different classes E-commerce continues to thrive, but not commensurate with thelarge number of users and the power of Vietnam's Internet economy The expectations andshortcomings that need to be addressed about Vietnamese e-commerce are still in the future
This shows that the potential of advertising method of combining mobile, wifi and social network ishuge, this is also the foundation for Wifi marketing to be born So Wifi marketing is a tool thatbrings utilities and benefits to solve the above problems
Trang 11Google search giant has launched a new project called Google Station, which aims to provide freeWi-Fi connectivity around the world And, Google Station is the latest innovation that Google haslaunched recently
Google Station was originally formed from a partnership between India and the railway industry inIndia, thereby helping bring free Wi-Fi connectivity to train stations throughout India
In the future, Google plans to expand its efforts to direct Google Station to many other parts of theworld, not only at train stations but also coffee shops, universities and many other public areaseverywhere
To expand this project, of course it’s also required to look for partners such as ISP, infrastructuredevelopers, large locations and organizations finding way to provide their loyal customers withwireless connection right
Accordingly, Google will create Wifi hotspots at deployed locations such as coffee shops orshopping malls Everyone can access it for free without knowing the password, which is quiteconvenient
5.2 Direct competitors
MEGANET: is the first unit to deploy free Wifi network for public areas throughout Vietnam and isalso the market leader in Wifi marketing solutions Currently, it has covered more than 15 provincesand cities with the number of hotpots up to nearly 5,000, daily serving about 100,000 free Internetaccess users
5.3 Scope of service provision
Google, along with Facebook, is one of top two big figures leading the projects of bringing freeInternet connectivity to all over the world Google Wifi is a free public wireless connectivity project
of Google first-time deployed in Mountain View, California
Currently, with Wifi Marketing 3.0 model, there are 4 models that have been commonly used inVietnam:
Trang 12- Public WiFi Marketing: This is the form that organizations, enterprises or government
agencies organize and deploy free public WiFi system in locations such as Pedestrian Street,railway station, pier, hospital, park
- WiFi in chains: This is the model applied to store chains of large enterprises such as Bank,
coffee shop chain such as Highland Enterprises build wifi marketing connectivity with theaim of increasing experience , bringing added value to customers, thereby promoting theirbrand or message and increasing customer satisfaction
- WiFi Marketing at single locations: This is the model used by small, single restaurants
and coffee shops With this model, restaurant staff does not have to spend time on answeringthe question of each customer about wifi password Even when customers access WiFiMarketing system, they know that promotions are available in those coffee shops orrestaurants, increasing sales of promotional products
- WiFi Marketing for events: This is a model used for big events that brands want to
promote their products to event participants Typically, it is WiFi Marketing campaigns fordance music contest Be U + With Honda implemented by Honda Vietnam in coordinationwith the iChip By using Wifi Marketing technology of iChip using 3G, 4G, the program hasdeployed to collect hundreds of thousands of opinions of customers and hundreds ofthousands of likes, shares on facebook WiFi Marketing 3.0 technology deployed in 2017 inVietnam in combination with FTTH internet network will bring good experience for usersand bring great efficiency to enterprises with 3 following advantages of Wifi Marketing:
Brand promotion: Owners of free Wi-Fi hotpots can set up by their own customers the
configuration to ask customers to like their Business Facebook page or enter informationsuch as phone number, email This is an effective way to increase customer data because ofhigh rates of access and spread
Easy identification of potential object: To connect to free Wi-Fi, customers must provide their
current information and location; at the same time targeted ads and ads on products similar
to the location that the customers are accessing Wifi will be displayed From then, customershave more information about promotions, discounts and more options for similar productsand services
Easy management of customers: The deployment of Wi-Fi Marketing systems help enterprises
to monitor remote hotpots, monitor the number of people accessing and analyze Wifinetworks around to select the appropriate form of advertising
In short, Wi-Fi Marketing is a unique marketing solution that brings great efficiency to smalland medium-sized enterprises and individual users
SWOT analysis :
Trang 13- SAIGONTEL is an unit cooperating
with leading telecommunications
partners in Vietnam: Viettel, VNPT
GHK, Casa System,
links with big customers: SCTV,
Mobifone,
- Highly experienced technical and
sales staff
- Good image promotion system on
many mass media
and partners
fast, with a high educationallevel, a high and increasingaverage income, leading to theincrease in interactive need fortechnological services anddigital services, services ofsocial networking, google mail,etc.)
- Speed up the development ofcustomers of the enterprisesthrough Digital Marketingchannel
SaigonTel's service packagesfrom other competitors
between SAIGONTEL andCustomers and betweenSaigonTel and its partners
- It’s required to hire infrastructure to
connect FTTH Internet through
partners
- Passive in controlling the quality of
FTTH connectivity rented from
share
cooperation with partners
Trang 145.3 Technological selection of the project:
5.3.1Technological solutions:
Device Access Deceive: Router Wifi is equipped with the strongest configuration at the moment withdual-core CPU 1.4GHz and RAM up to 256MB, which helps the device operate in the most stablyand smoothly manner and its loading capacity at the same time of up to 90 helps you meet the needfor using internet without any worry about disconnection Unlike other dual-band 802.11ac devices,Linksys EA9500 AC5400 is capable of generating three frequency bands at the same time (Tri Band)and operating on two different frequencies: a 2.4GHz standard 802.11n bandwidth with 1000Mbpsspeed and two 5GHz standard 802.11ac bands with 2166Mbps speed, total bandwidth of up to5400Mps
Required specifications:
Wi-Fi Technology: AC5400 MU-MIMO Tri-band Gigabit, 1000+2166+2166 Mbps
Key Features: Tri-Band (5 GHz + 5GHz + 2.4 GHz); 4x4 AC, MU-MIMO; USB 3.0 Port; Dual-CoreCPU; Beamforming Technology; 8 Adjustable Antennas; Smart Wi-Fi
Network Standards: 802.11b; 802.11a/g; 802.11n; 802.11ac
Wi-Fi Speed: AC5400 (N1000 + AC2166 + AC2166)
Wi-Fi Bands: 2.4 and 5 GHz(2x) (simultaneous tri-band)
Wi-Fi Range: Very Large Household
Number of Ethernet Ports: 1x Gigabit WAN port; 8x Gigabit LAN ports
Other Ports: One(1) USB 3.0 port; One(1) USB 2.0 port; Power
Antennas: 8x external adjustable antennas
Processor: 1.4 GHz dual-core
LEDs: Status Indicator, MU-MIMO Indicators, illuminated Linksys logo, Wi-Fi, Wi-Fi ProtectedSetup, Power, Internet, LAN 1–8, USB 3.0, USB 2.0
Wireless Encryption: 64/128-bit WEP, WPA2 Personal, WPA2 Enterprise
Operation Modes: Wireless Router; Access Point (Bridge)
Storage File System Support: FAT; NTFS; HSF+
Easy Setup: Browser-based Setup; Linksys Smart Wi-Fi Setup
Certified Operating Systems: Windows 7, Windows 8.1
Minimum System Requirements: Internet Explorer® 8; Safari® 5 (for Mac®); Firefox® 8; GoogleChrome™
Dimensions (LxWxH): 264.52 x 318.15 x 66.66 mm (10.41 x 12.53 x 2.62 in.) without antennasWeight: 1727.7 g (60.94 oz)
Security Features: WPA/WPA2; 128 bit AES link encryption; WEP
Regulatory Compliance: FCC class B
Power Supply: Input: 100-240V ~ 50-60Hz; Output: 12V, 5A
Trang 155.4 Financial analysis and economic efficiency of the project:
5.4.1 Total investment capital:
The project is invested in two phases with total estimated investment of VND 165,812,000,000
10,856 119,421
15,074 165,812
SUMMARY TABLE OF EQUIPMENT ITEM (Unit: million dong)
Order LIST OF EQUIPMENT
QUANTITY
UNIT COST VALUE
IMPORT TAX
VALUE AFTER US
D VND BEFORE TAX IMPORT TAX
Trang 165.4.2Project economic efficiency:
Implementing this project will contribute in the growth of revenue of SAIGONTEL Company and
the promotion of telecommunications service supply brand nationwide
In addition to the economic benefits, the project also brings many other effects such as:
- SAIGONTEL Company is one of the first telecommunications units to participate in
investment and cooperation in implementing Wifi marketing service
- Become a true ISP in Vietnam, promote cooperation with global service providers: Google,
facebook, etc
Conclusion: Under the economic efficiency calculation, it’s seen that the investment in Wifi
marketing service system will bring many economic benefits to SAIGONTEL