Deputy Minister of Information and
Communications Phạm Hồng Hải has said telecom companies should grow
substantially, offering better quality and customer care services, instead of
just promotions and discount campaigns.
Hải was speaking at a meeting yesterday in
Hà Nội, held to review the business performance of Vietnam Mobile Telecom
Services (Mobifone) in the first six months.
He said Việt Nam had three large local
telecom firms, but promotions and discounts remained a major focus of these
companies. This was unsustainable development.
According to the Vietnam Telecommunications
Authority, it is currently studying how to manage promotions more effectively
by preventing large network providers from running rampant promotional
campaigns. Some even offer promotions below their production costs, leading to
A policy to manage new promotions
stipulates that if a telecom firm offers too many promotions against its
revenue ratio, it will lead to problems affecting its business performance. Hải
said network providers should maintain their market shares along with giving
positive and sustainable competition, such as by offering quality services and
Too many promotion campaigns resulted in a
large volume of new subscribers, while revenues did not rise, Hải said.
The information and communications ministry
(MIC) has asked network providers to announce their 3G coverage areas, and has
asked Mobifone to invest more in telecom infrastructure, Hải said.
The announcement of their 3G coverage areas
is aimed at promoting healthy competition, just as other countries have done.
Therefore, the ministry would soon consider applying it in Việt Nam, he said.
The number of newly built base transceiver
station (BTS) is an important factor in assessing the ability of network
providers in the time to come.
Investment in infrastructure development
has become more important as the government has agreed to grant 4G licences by
the end of the third quarter.
Lê Nam Trà, CEO of Mobifone, said this was
the first year Mobifone, the country’s second-largest mobile services operator
in terms of subscribers, piloted its 4G and MobiTV services on July 1 by
depending on four pillars of cell phone, retail, television and multimedia
In the first six months, Mobifone earned
VNĐ17.4 trillion in revenue, bringing an after-tax profit of 2,336 billion. —