VietNamNet Bridge – The Ministry of Information and Communications is going to revoke the virtual mobile network license of Vietnam Multimedia Corp. (VTC) as the firm failed to launch service within the scheduled time limit, an official of the ministry said.

This is the final virtual mobile network to have the license withdrawn in Vietnam after Dong Duong Telecom Joint Stock Company as the first firm to be given the license for offering virtual mobile services had its license revoked last year.

The information ministry on June 22, 2010 granted the virtual mobile network license to VTC, under which the telecom company was supposed to provide mobile information service via the 3G technology infrastructure of EVN Telecom and to connect with 2G mobile services at home. At first, VTC planned to launch the service nationwide at the end of 2010 but the plan has never been realized.

VTC didn’t start the virtual service as planned as this company has to map out business strategy again under a restructuring scheme, meaning it can only focus on some business activities like television services, Deputy Minister of Information and Communications Le Nam Thang said.

Furthermore, according to Thang, there are no chances left for doing business with virtual mobile services in Vietnam because the local mobile telecom market has witnessed tough competition among real mobile service providers over the years. As mobile charges have been brought down to the level almost equivalent to input costs and lower than the regional and global levels, virtual mobile networks will see no ground for survival.

It is impossible for virtual mobile services providers as intermediary players without technical infrastructure to compete with real network players, Thang remarked.

In addition, mobile networks in Vietnam are still active as direct service sellers, leaving no chances for virtual networks to survive, he noted.

In fact, global telecom service markets tend to open the door to virtual service retailers first and then real service providers. Real mobile service providers in these markets don’t focus much on providing services directly to consumers as they do the job via service distributors, which is seen as a great chance for virtual mobile network providers.

Source: SGT