The telecom market is unlikely to sustain its scorching pace of development since it has reached saturation point and tariffs have fallen significantly.
Viet Nam has a population of 86 million and 163 million subscribers, including 148 million for mobile phones.
“The telecommunication market has reached saturation and … has come under strict oversight with regard to quality and tariffs,” Deputy Minister of Information and Telecommunications Tran Duc Lai said.
“It is time for service providers to focus on quality and diversification of services.”
He predicted 2011 to be a year for improvement in quality and a boom in broadband services.
This year most telecom firms have achieved growth of at least 20 per cent and introduced many new services like 3G, internet TV, high-definition television, and 3D television on trial.
The industry’s revenues are expected to top US$6 billion, double the 2007 amount.
But next year will be hard for companies that lack muscle since saturation has also ushered in increased competitiveness and changes. FPT bought a stake in EVN, South Korea’s SK withdrew from S-Fone, CityPhone folded up, while VTC and Dong Duong Telecom could not provide their “full mobile virtual network operator” service as planned.
Vietnam’s telecom sector is expected to earn revenue of VND200 trillion ($10 billion) in 2010.
The figure was released at a conference to review the implementation of the telecom and internet development plan to 2010, in Hanoi on December 23.
Addressing the conference, Permanent Deputy Minister of Information and Communications Le Nam Thang affirmed that in the reviewed period, the telecom sector had a rapid development step, becoming a spearhead economic sector of the country with an average annual growth rate of 30-40 per cent. Marked achievements – the modern telecom infrastructure system and higher competitiveness in the telecom market – helped narrow service gaps between regions.
The country has 162 million telephone subscribers or 189 telephones per 100 people, including 91 per cent mobile phone users. The number of people using the internet has hit 26 million or 31 per cent of the country’s population.
At present, Vietnam has 11 network infrastructure enterprises and 81 internet service providers. They are operating well in the domestic market and have begun to invest abroad. The military firm, Viettel, has invested in Cambodia, Laos, Myanmar, Haiti and Mozambique, while the National Post and Telecom Group (VNPT) has opened a representative office in the US.
Source: Saigon Post
