VietNamNet Bridge – After the sharp decrease in mobile phone charges in August 2010, the gaps in the charges offered by different service providers have been narrowed. Analysts say that mobile phone service providers cannot compete with others by offering low charges. Instead they need to compete with strong brands.

There once were big gaps between charges applied by different mobile service providers. However, the gaps have disappeared after the latest charge adjustment. Including the regularly offered discounts, the charges applied by large service providers are even lower than those applied by smaller service providers. The only advantage of small service providers is that they offer free inner-network calls in specific packages.

At present, VinaPhone, MobiFone and Viettel are considered the three largest mobile service providers in Vietnam. Of the three, the charges set by MobiFone and VinaPhone are the nearly the same which are 10 dong per minute lower than the charges set by Viettel in nearly all of their respective packages. However, the gap of 10 dong per minute proves to be insignificant because when deciding which network to use customers now pay more attention to the quality of services.

In the latest news, VinaPhone has announced a promotion program under which subscribers in 10 provinces in the central region and central highlands will be able to pay 6000 dong only to make 100 minute inner-network calls.

Nguyen Thanh Long, a 9th grader in Hanoi, has decided to use MobiFone after some thoughts. At first, Long wanted to use the cheapest package in order to save money. However, though the charges are just a little lower than that of Viettel he finally chose a package with MobiFone, and even that was not the cheapest package.

“As mobile service providers regularly offer discounts, the actual charges have been cut by 50 percent. If counting other preferences, the charges would be very low. Therefore, the important thing I have to consider when choosing network is the strength of the brand,” he said.

Long is not the only person who decided to choose MobiFone. Thu Hang, who lives in Dong Da District in Hanoi, has decided to use another MobiFone number. According to Hang, the charge for prepaid MobiCard, after the latest reduction, has been lowered to 1400 dong per minute. However, with the big promotion programs, the actual charge is 700 dong per minute only. Besides, if she owns a MobiFone number, she will be able to enjoy many other preferences applied to inner-network calls.

Tran Giang My, a 10th grader in Hanoi, said that she has shifted to use MobiFone’s services because she wants a brand symbolizes the dynamism and youthfulness. “I many times saw the advertisement clip of MobiFone, and I really like it,” she said.

Since there are so many promotion programs and charge reductions, customers now do not care much about service fees or charges. Therefore, analysts believe that the winners in the market will be those who have strong brands and can polish their images.

As for small service providers, an expert said, brand will not be their advantage. Therefore, they will meet many difficulties in competing with big networks in the time to come. However, he still keeps cautious when talking about the market share in the near future. “They (the small service providers) will still be redoubtable rivals when they are pushed against the wall,” he said.

Trung Anh