VietNamNet Bridge – Vietnam is ready to support the development of flourishing over-the-top (OTT) services, whereas telecom companies are frowning upon the free services.

The Ministry of Information and Communications is drafting management regulations for the services, including free smartphone apps such as Viber, Wala, or WhatsApp as well as other apps such as Yahoo! Messenger, Facebook Messenger, Line, Kakao Talk, and Zalo.

Vietnam’s leading internet content provider VNG has poured money into advertising Zalo, while other apps such as Kakao Talk and Line have also gained popularity in the country in recent years.

Vietnam is home to 17 million Yahoo! Messenger subscribers, five million Viber subscribers, 8.3 million Facebook Messenger, and millions of users of Line, Kakao Talk, Zalo and other apps, as reported at an OTT services workshop at last week’s Vietnam Telecomp, the country’s most influential mobile, ICT, and electronics platform.

Dr. Tran Tuan Anh from the Telecommunications Department under the Ministry of Information and Communication (MIC) said the ministry would issue OTT services management regulations that would benefit content providers, internet connection providers, and users.

In early November the MIC asked telcos to work with OTT providers to allow free phone calls and messages for users. Telcos were required to submit their internet fees for phones and OTT services for approval by the Department. The ministry also asked the department to review new services and technology developments to recommend solutions to mitigate negative impacts on businesses.

Meanwhile, telco giants MobiFone, Viettel, and VinaPhone have claimed that a rapid rise in the number of users subscribing to OTT services was behind their recent decline in revenues.

The three giants, as well as the Vietnam Post and Telecommunications Group (VNPT) secured a strong presence at the this year’s Telecomp event, held in Ho Chi Minh City from November 20-23, together with many international brands and suppliers.

The industry show was a combination of three events, Vietnam Telecomp, Vietnam Internet & IT, and Vietnam Electronics, featuring over 200 exhibitors from 13 countries and territories showcasing their cutting-edge technologies. Five overseas group pavilions were organised for China, India, Korea, Singapore, and Taiwan. They were led by industry associations such as China’s Council for Promotion of International Trade, India’s Telecom Equipment and Services Export Promotion, and the Taiwan Electrical and Electronic Manufacturers’ Association.

Co-organised by the Centre for Press and International Communications Cooperation, under the MIC, and China’s Adsale Exhibition Services, the event boasted a 3G experience zone to demonstrate how devices could benefit people’s work and daily life via interactive activities.

VNPT spokesman Bui Quoc Viet said 3G apps had been in Vietnam for more than three years, but service quality was not up to expectations. He said the top priority now was to ensure service quality and that companies were making investments toward this end. That said, plans for 3.75G and 4G still have a long way to go.

Source: VIR