VietNamNet Bridge - The market was still dominated by the three biggest players – VinaFone, MobiFone and Viettel -- but sources said small operators were preparing for a new game.


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A well-informed source said a foreign partner is considering investing nearly $1 billion in a small network in Vietnam. 

Meanwhile, the manager of a network operator confirmed with Buu Dien that he is under negotiation with investors.

Though there is no official information about which partners would join hands, the news was enough to stir up the Vietnamese market.

In October 2016, the Ministry of Information & Communication (MIC) officially granted the license to operate 4G network to Gtel. The licensing, as commented by analysts, would make Gtel ‘more valuable’ in case the network operator calls for investors.

According to MIC, of 128.3 million mobile subscribers by the end of August 2016, Gtel had had 5.9 million subscribers.

An analyst commented that Gtel would not use 4G license just as ‘jewelry’ which makes it more attractive to investors, and therefore, easier to call for capital. “It will take full advantage of the license to change the face of the market,” he said.
The market was still dominated by the three biggest players – VinaFone, MobiFone and Viettel -- but sources said small operators were preparing for a new game.

Meanwhile, the same source said Vietnamobile wants to start a new game. Elizabete Fong, called the ‘iron woman’, came back in June 2016 to continue to regulate the mobile network, but under the new business mode – a joint stock company, not a BCC (business cooperation contract).

Some analysts commented that Vietnamobile is a network with the most optimal operation model compared with state-owned networks. It is also creative with diverse service packages and special sale promotion programs.

However, it has many disadvantages as the latecomer in the market and has only half of 3G bandwidth after EVN Telecom was transferred to Viettel.

In April 2016, the Prime Minister approved a plan to change Vietnamobile’s investment mode from BCC between Hanoi Telecom and Hutchison to a joint stock company with investment capital of $1.248 billion.

In October 2016, a new business strategy for the network operator was redrawn. A new ‘lease of life’ was given to Vietnamobile when investors announced a plan to pour $450 million to settle the fatal weakness of the network – narrow coverage – and start a new game in the market.

Pham Ngoc Lang, chair of Hanoi Telecom, the Vietnamese partner, said VIetnamobile is ready to enter a new development stage, planning to obtain 20-30 percent growth rate per annum. 

In the immediate time, Vietnamobile will focus on enlarging the 3G coverage area, about 90 percent of the total population by the end of 2017. It has chosen Ericsson and ZTE as the new 3G equipment suppliers.


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Chi Mai