2010-09-07 20:10:09 -
Vietnam Telecommunications Report Q3 2010 - a new market research report on companiesandmarkets.com
The latest update on the telecommunications market in Vietnam announces the introduction of greater competition to the mobile and 3G sectors, as well as the fixed-line sector. The announcement of a ninth operator, Vietnam Multimedia Corporation (VTC) in June 2010, to the mobile sector by the Ministry of Information and Communications (MIC) is aimed at driving network expansions further into rural areas, where the provision of services is limited. VTC, which has been awarded a mobile virtual network operator (MVNO) licence, is to utilise the network of EVN Telecom to launch services by the end of 2010.
EVN Telecom commercially deployed its 3G services in June 2010, becoming the final operator to do so since licences were awarded in 2009.
The operator is targeting the deployment of its service in Hanoi, Ho Chi Minh City, Hai Phong, Da Nang and Can Tho in its first phase. EVN Telecom has so far invested VND2trn (USD104mn) in the installation of around 2,500 base transceiver stations (BTS) in 63 provinces and cities nationwide, covering 46% of the country´s population. Under the second phase, the company plans to install more than 5,000 BTS by the end of the year. EVN Telecom is hoping to sign up 1mn 3G subscribers within one year of launch. Furthermore, the launch of EVN Telecom´s 3G service means that VTC may also launch 3G services.
In addition, the fixed-line sector announced the entrance of a ninth operator. Mobile operator GTel was award a fixed-line licence by the MIC. We believe that the operator could be eyeing the growing fixedwireless market, as well as the provision of bundled services to grow both its subscriber base and market share. The operator is not the only one to cross over into another sector, with MVNO operator Indochina Telecom announcing in May 2010, it had been granted a permit to trial WiMAX technology by the MIC, according to VietNamNet Bridge. The company joins nine others mostly mobile network operators in being authorised to test the 4G mobile broadband technology, which will help boost broadband service availability across the country.
The growing level of competition in the sector has also led to growing maturity across the telecoms market, which saw its score for Telecoms Market increase in the quarter. This was responsible for improving Vietnam"s position in the Asia Pacific Business Environment Ratings table. The country rose one spot from 16th to 15th, placing it slightly ahead of Bangladesh but behind Cambodia and Laos.
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