A lot of challenges still exist in Vietnam’s telecom market

Though ranked eighth in the International Telecommunication Union’s (ITU) ranking in subscriber growth density development, a lot of challenges still exist in Vietnam’s telecom market.

Though ranked eighth in the International Telecommunication Union’s (ITU) ranking in subscriber growth density development, a lot of challenges still exist in Vietnam’s telecom market, said Hamadoun Toure, the visiting ITU’s Secretary General to local press agencies.

The interview has been briefed by VietNamNet Bridge as follows:

Hamadoun Toure, ITU’s Secretary General
Mr Toure said that Vietnam’s telecom industry has been developing very well which can be seen in the use of modern technologies to provide services to people. This has also been reflected in the high growth rate of 3G subscribers: the 3G services were launched in late 2009, and the number of 3G subscribers has been double just after two years, thus helping make the subscriber density increase from 87 percent to 175 percent by 2010.

ITU has ranked Vietnam at the eighth position in terms of mobile phone subscriber development density. The ranking has helped Vietnam go farther in comparison with developing countries which have the average density of 70 percent. Vietnam has also exceeded developed countries with the average density of 114 percent.

Also, the broadband development in Vietnam has also been very strong with the growth rate up from zero to 13 percent in 2008-2010. These are really impressive figures.

Do you think that the current subscriber growth density of Vietnam is really good?

Though Vietnam ranks the eighth in terms of subscriber development density, I think that problems still exist. For example, the average return per user (ARPU) has decreased. However, I have to say that this is the problem of many countries in the world, where the mobile phone subscribers develop rapidly.

You have visited and worked with some service providers. What do you think about the technologies being used in Vietnam?

Vietnamese telecom service providers all use the technological infrastructure equipments at high levels in comparison with other service providers in the world. Some enterprises have been providing 3G services and they plan to march towards 4G services.

ITU also thinks that Vietnam has been developing GSM network very well. Vietnamese network operators obtain good technologies, run marketing campaigns effectively and provide high quality services.

Do you think that it is too early for Vietnamese companies to plan to provide 4G services, while 3G services have not been exploited and developed in the most effective way?

I believe that the companies which deploy new technologies soon and always have their advantages when the technologies get commercialized. It is never too soon to apply new technologies.

There are favorable conditions to apply 4G technology, since broadband has been available everywhere. However, I have to say that the government will play a very important role in helping the services develop well.

What do you think are the biggest challenges in Vietnam’s telecom industry and what Vietnam should do to settle the problems?

I personally think that the biggest challenges lie in the connection of telecom service operators, the allocation of radio frequency and the sharing of network infrastructure among operators.

Besides this, there also existing the challenges caused by the market saturation and spam. If the connection problem can be settled, Vietnam would be able to lower the charges on terminal equipments, reduce the investments in infrastructure and ease impacts on the environment.

Vietnam needs to have an overall development strategy. Once again, I would like to emphasize the role of the government in assessing the situation and setting up the goals for the future.

Some Vietnamese telcos have made investment abroad. What do you think about the ability to succeed with the projects?

As far as I know, Viettel has entered Laos, Cambodia and Haiti, Mozambique and Peru markets. I think that a company which has succeeded in a developing country would succeed in other developing countries. In the recent working session with Viettel, I showed them some other countries which allow to develop new licenses – Vietnamnet

Tags: Vietnam Telecom, Vietnam telecom maket