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VietNamNet Bridge – The development of 3G services will require a systemic development, from the market behavior by telecom infrastructure providers, content service providers to the connection diversification in order to take fully develop mobile broadband.
Telecom firms’ behaviours
According to Frost & Sullivan, a telecom market surveyor, the turnover of telecom networks in South East Asia mostly depends on data services from 3G networks. now The traditional call and message services cannot bring the big turnover growth as they could in the past.
As such, the challenge for service providers lies in the correlation between the exploitation of expensive 3G networks and the low ARPU (average return per unit).
In order to succeed, they need to provide to clients with better Internet? access and use 3G capacity to make services more convenient. At the same time, they need to approach the remote areas, which the telecom network still has not reached, where they shouldoffer flexible plans without asking clients to make long term commitments.
XL Axiata network in Indonesia saw the turnover from data services increasing by 270 percent last year thanks to innovative packages. The company introduced smart services on 3G network with the easily accessible packages
Telecom service providers have also been focusing on value added services on 3G basis such as news and entertainment, social networks, or the service to protect houses with webcams on 3G Analysts say the key to success is providing the content suitable to clients’ tastes and demands.
New system
3G networks have been operating in Vietnam for one year, but the number of applications remains very modest, and few services can meet the demands of users.
According to Nguyen Thien Bang, Deputy Director of VinaPhone Zone 2, the current conditions in Vietnam are still not suitable for the development of some high grade 3G applications. For example, the e-payment service cannot develop because of the Vietnamese people’s tradition of paying by cash.
Meanwhile, according to Vu Minh Tri, General Director of Indochina Qualcomm, 3G services have been developing slowly due to the high prices of 3G terminals, while the applications and content services remain poor. Therefore, Qualcomm has worked with phone producers on the plan to make low cost products. He said in the next year, 3G phones priced 1-2 million dong will appear on the market.
Statistics show that in 2009, there were 40 3G subscribers for every 100 mobile phone subscribers. This means that by 2014, the world will have 2.8 billion 3G subscribers instead of one billion at present. According to Qualcomm, in 2009-2014, the Philippines, Indonesia and Vietnam will be the three countries in Asia with the highest growth rate in the number of 3G subscribers, about 400 percent.
It is expected that from 2011, more than 50 percent of 3G equipments will be imported to emerging markets thanks to the increasing demand. By the end of the year, the number of wireless broadband subscribers would exceed the number of wired broadband subscribers in Vietnam and in the world.
A comprehensive systemic development of the marketwill be inevitable if 3G technology is to be adopted . 2011 will see a 3G boom, analysts say.
Connection diversification
Deniss Brunetti, Deputy Director of Ericsson Vietnam, said that since Ericsson provides home healthcare service in the Netherlands and Spain connecting people with their doctors through broadband, the number of hospitalized people has decreased by 60 percent, while the expenses on services have dropped by 40 percent. A smart traffic management with broadband connection has allowed a reduction of the fuel consumption by 25 percent.
Experts believe that broadband services should not only target high income earners, but everyone in the society.
Source: Thoi bao Kinh te Saigon
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