Page 46 - Mono Technology Public Company Limited : Annual Report 2014 EN

Mobile Value Added Service Business Overseas

To offer products and services in overseas subsidiaries, local content is selected and localized to suit lifestyles

and behavior of customers in each country.

Indonesia

In 2014, Indonesia ranked the 4 largest mobile market in the world with the number of mobile users over
th
300 million users. It is also in the worlds top ten 3G mobile broadband markets. Regarding consumers behavior, it is
ubiquitous in Indonesia that people will hold multiple SIM Cards, which means on average each user holds 1.7 active
SIM cards. This encourages the mobile operators to relentlessly enhance the quality of their service, signal, and price
to compete with other players in the market.

For Mobile Value Added Services, PT. Mono Technology Indonesia (Mono Indo) plans to maintain the existing
Feature Phone Market as well as introduces its services to new Smartphone user market. The Smartphone market is
considered the new target group with relatively high growth rate calculating to 15 percent of the entire mobile phone
market in Indonesia. Within the next three years, 40 percent of Smartphones are forecasted to be put on the market,
especially Android phones of which the price is low-cost, starting at only 1,800 Baht. Services available in Indonesia
include:

• Entertainment Clip : A variety of up-to-the-minute video clips divided into categories
• Fashion & Lilfestyle: Tips of fashion and dressing in style as well as tourist destinations recommendation

• Horoscope Content: Express horoscope services, namely birthday horoscope and zodiac horoscope based on
month or year

Vietnam

Mono Technology Vietnam or Mono Vietnam still offers mobile value added service (MVAS) but customizes
it to meet the need of the market. Branded content are introduced more widely to the market, especially customers
of Mobifone and Vinaphone. Recently, MONO Vietnam has entered into contract with Viettel, the mobile operator
with the biggest customer base among others. Based on the customer base of these three biggest major mobile
operators in Vietnam, the number of mobile users in Vietnam is over 115 million numbers, with mobile penetration
rate of around 90 percent.

Service in Vietnam focuses on presenting quality content to customers via Mobile Browser and Application,
as well as Operator Channel where the customers will be charged on SMS and Mobile Operator Direct Billing. Besides,
Mono Vietnam is collaborated with Mobiphone to provide Video Portal through mCine and Music Portal through
mMusic. After having experienced in video portal service on website, Mono Vietnam considers that the opportunity
of Online Advertising has enough potential for increasing revenue in accordance with the condition of Online Market
that is expanding to a great extent in Vietnam.

China

The co-investment between Mono Technology Hong Kong Limited, which is the Companys subsidiary,
and Yunnan Mono Technology Co., Ltd (Joint Venture Partner) is implemented with an intention to establish a Joint
Venture. Mono Hong Kong holds 42% of this joint venture which operates businesses concerning content business in
the Peoples Republic of China. Currently, the Joint Venture Agreement is in the process of revision in accordance
with Chinas business laws, which are prescribed with strict rules and complicated procedure. Thus, this has caused
the delay in this Joint Venture establishment process. However, both partners are arranging the preparation
in terms of business structure, operating system, and personnel in order to support the business management
and administration of the Joint Venture.
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