VietNamNet Bridge – Added value services now serve as the lever for mobile network operators in the context of the current big economic difficulties. These generated the brightest part in the mobile information market in 2012 which would develop further in 2013.

Big leap made in non-voice service market

VinaPhone is believed to be the mobile network operator which has made clearest statements and made strongest commitments on the development of its non-voice services.

In 2012, VinaPhone, one of the three biggest mobile network operators in Vietnam, reportedly obtained the turnover of VND25 trillion, of which, non-voice services alone made up 52 percent. The figure represented a two fold increase in comparison with the turnover from non-voice services of VinaPhone itself three years ago.

VinaPhone now provides 80 kinds of added value services, MobiFone 50 and Viettel over 50. A lot of the services have been running on the 3G platform.

According to the Ministry of Information and Communication, Vietnam’s 3G services still have been developing well despite of the economic recession, which witnessed the high growth rate of 25 percent in 2012.

VinaPhone, for example, has reported the growth rate of up to 60 percent for the 3G services in 2012. Meanwhile, Viettel, reported that 50 percent of its total turnover in 2012 came from 3G services.

The heavy investment in the 3G technology made by mobile network operators has helped them step up the providing of added value services. A report showed that the total investment capital in 3G infrastructure has reached VND27 trillion, which allows 3G wave reaching to 90 percent of the population and territory. This has laid down a technology platform ready for the launching of added value services.

Lam Hoang Vinh, General Director of VinaPhone, said the 3G-based added value services still have great potentials to develop. Vinh said Vinaphone has upgraded 3G into 3.5G which allows the maximum download speed of up to 21.6 Mbps and upload speed of 5.76 Mbps, which would be able to well satisfy the demand for developing the services to run on the 3G platform.

Low charges, cheap terminal devices back value added service development

While the heavy investment in the 3G infrastructure is considered the decisive factor that decides the development and popularity of 3G services, the low 3G service package fees and the cheap terminal devices are considered the support factors.

Smart phones have become cheaper in the market. A smart phone now can be bought at VND1.5 million only, while a branded tablet with 3G can be bought at VND4-5 million. And clients only have to pay VND15,000 a month for the smallest 3G service package.

Meanwhile, experts say that a smart phone with the configuration strong enough to be surfed on Internet would be priced at no less than VND2 million, and a service package with no limitation in capacity has the fee of VND40,000.

Nevertheless, the experts admitted that the prices of terminal devices have been on the decrease in the cutthroat competition. Analyst have predicted the boom of the VIetnamese smart phones with the prices of less than VND1.5 million. Meanwhile, 3G service packages would be designed in the ways which can satisfy the diversified requirements of clients.

A report showed that in 2012, smart phones made up 20 percent of the Vietnamese market.

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