return icon Vietnamnet.vn

ADSL services less attractive amid new technologies

Big ADSL service providers, namely VNPT, Viettel and FPT have offered big preferences to new subscribers registering services in May 2013.

VietNamNet Bridge – Big ADSL service providers, namely VNPT, Viettel and FPT have offered big preferences to new subscribers registering services in May 2013. They have to try every possible measure to prevent the sharp fall in the number of ADSL subscribers, blamed on the application of new technologies.


{keywords}

Ho Thi Dieu Hong, a senior executive of VDC 2, has admitted that the ADSL subscriber growth has been slowing down over the last few years in the context of the rise of the 3G technology.

Revealing the modest growth rate of 15 percent per annum, Hong said that it’s necessary to upgrade the service quality and better take care for customers to retain them.

Bui Phuong Chau from FPT also said its number of new ADSL subscribers still has been increasing, but more slowly than previously.

Le Huu Hien, Deputy Director of Viettel Telecom, said he can see signs of the ADSL market growth stopping short.

Meanwhile, an economist said that the disappearance of hundreds of thousands businesses in the economic crisis had brought lower revenue to telcos, because businesses were the big clients which spent more money on the service than household clients.

A report of the Ministry of Information and Communication showed that by the end of 2012, Vietnam had had 5.2 million subscribers, including 3 million household subscribers. VNPT had led the market with 62 percent of the market share with 3.2 million subscribers. Viettel had had 1.2 million subscribers (23 percent), FPT 700,000 (13 percent), and the remaining 2 percent belonged to NetNam. Meanwhile, Saigon Postel is targeting business clients in big urban areas.

IPTV service packages, including MyTV of VNPT, OneTV of FPT, and NextTV of Viettel, were once hoped to help increase the number of ADSL subscribers. However, this did not come true, because the services now have to compete with higher grade services such as cable TV or satellite TV.

Analysts believe that telcos would not spend more money on ADSL to expand the market. In order to have more subscribers, telcos need to target new urban areas or remote areas. However, this would require big money to set up infrastructure items.

According to Hien, Viettel is still moving ahead with the program on popularizing Internet services, but it would not spend more money on the infrastructure, while it would only provide services on the existing infrastructure.

As soon as 3G technology appeared, ADSL service providers have been falling into dilemma. Currently, the clients who need to use high speed Internet cannot work on 3G with the current speed. Therefore, ADSL still can “live well,” but its attractiveness has decreased.

In fact, ADSL service providers anticipated the situation some years ago. Therefore, they have stopped new investment programs, while focusing on upgrading services to retain existing clients in big markets, including Hanoi, HCM City and Da Nang.

Nguyen Tri Nang, an expert, has noted that service providers now have to think of the measures to lure more customers, once the service quality is no more the key of the competition.

“The service providers understand that they cannot expand the markets. Therefore, they have been trying to scramble clients with each other,” Nang commented.

Viettel and FPT have offered the 30-45 percent fee discounts. The clients, who pay fees for 12 months in advance, would get the free 13th month use.

Especially, FPT has announced that the customers of VNPT and Viettel, who leave the networks and shift to use FPT service, would receive the gifts – wifi modems and enjoy the discount of VND20,000 a month. The preferences would be applied to Mega Save, Mega You and Mega Me packages.

SGTT

MORE NEWS

Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.
back_to_top