Mobile telecom giants stop big promotion race

While small networks continuously have launched “big promotion programs, three giants namely VinaPhone, MobiFone and Viettel suddenly announce to stop such kind of promotions.
VNPT affiliates including MobiFone and VinaPhone opened the stop by cancelling the huge promotion package of presenting 100% value of coupons. Accordingly, from July 5 to July 7, the two telecommunication service providers started to reduce a half of preferences for prepaid subscribers.

A VinaPhone official told VnExpress that the 100% value promotion program made telecom firms exhausted, their profit go down amid Vietnam’s market is going to saturation threshold.

In the past time, promotional programs of telecom providers were compared as a predetermined scenario. Every month a firm launched around three promotion packages of presenting 100% value of coupons.

“Promotional program is periodic and continuous, but this has not been able to stimulate consumption. Even the sentiment, which exists in the telecommunication market at this time, is that prepaid subscribers are always waiting for promotion to scratch coupons. It is the main reason that’s why we decided to stop the race”, he shared.

With the same point of view, a source from MobiFone said that the firm cancelled the policy from July 5. Instead of this, the promotional policy for prepaid subscribers is only 50% value of coupons at maximum.

The market almost is shaped by two sides—big networks and small firms. The enterprises usually see each other’s move to office their own competitive strategies, meaning that as VinaPhone, Viettel stopped the big promotion race, MobiFone also will have to offer suitable adjustment.

Viettel to date has not announced to withdraw the race of presenting 100% value of coupons for prepaid subscribers. But, its Vice Director Nguyen Viet Dung said his firm also was considering a stop for next week. “We do not run after any telecom firm, but we are not able to stand alone in a general race”.

Meanwhile, small networks are rush to launch big programs to attract subscribers and customers who are “addicted” to telecommunication promotions.

The aforementioned moves of both sides will likely cause a certain disorder in which the giants could face a slight fall in number of calls. – Vietbiz24

Tags: Vietnam Telecom, Vietnam telecom maket

Posted by VBN on Jul 15 2011. Filed under Telecommunication. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry