Vietnamobile has announced it will invest $450 million in its 3G service with the aim of raising its market share to 15 per cent by 2020.

According to Mr. Pham Ngoc Lang, Chairman of the Board at Hanoi Telecom, Vietnamobile targets growth of 20 to 30 per cent per year to reach the 2020 target.

“In order to achieve the goal we will invest $450 million this year to expand our 3G network coverage in most provinces around the country,” he said. “We are willing to make larger investments in the years to come.”

“With the strong international telecom experience and in-depth understanding of local culture of our shareholders, Vietnamobile is committed to enriching the quality of life of Vietnamese consumers through our superb network quality and coverage enhancement, extensive nationwide distribution network, and unique value proposition especially in data and consumer-centric customer service,” said Ms. Elizabete Fong, General Director of Vietnamobile.

Vietnamobile will also debut its 3G network expansion plan by signing contracts with two important technology partners, Ericsson and ZTE. With their dedicated support and professional planning and engineering efforts, Vietnamobile’s 3G network will target reaching close to 90 per cent coverage by the end of 2017.

The Prime Minister previously issued a decision approving the conversion of Vietnamobile from a business cooperation contract (BCC) between Hanoi Telecom and its foreign partner Hutchison Telecommunications into a joint stock company.

The Vietnamobile Telecommunications Joint Stock Company has three shareholders, with Hanoi Telecom holding 50 per cent, Hutchison Telecommunications 49 per cent, and Hanoi Telecom’s General Director Trinh Minh Chau 1 per cent.

According to a report from the Department of Telecommunications under the Ministry of Information and Communications (MIC), as at 2015 Vietnam had 120.6 million mobile subscribers. In 2014 the number using 3G reached 26 per 100 people but in 2015 increased to 40 per 100 people. This suggests that a mobile network without 3G will have difficulties in the country.

The goal to develop 3G is only in the initial stage, however, and Vietnamobile has to make plans for 4G, which is expected to be implemented in 2017. Mr. Lang affirmed that Vietnamobile will study and assess market demand to prepare to invest in 4G.

The Department of Telecommunications recently announced that the license issued to the Saigon Post and Telecommunications Services Corporation (SPT) for the provision of mobile phone services via S-Fone has expired.

MIC will officially announce the withdrawal of the license in the near future. It has considered withdrawing S-Fone’s 850MHz bandwidth license since 2014 as it has been inactive and no payment has been made for many years.

VN Economic Times