Telecoms fail to exploit 3G

One year after the launch of 3G in Viet Nam, most Vietnamese subscribers were still only using the mobile service to connect to the internet, said Deputy Director of Vinaphone Zone II Nguyen Thien Bang.

At the seminar “mobile applications in the 3G era”, he also contradicted the idea held by some that 3G could replace ADSL. He said the 3G wave was unstable and not available in all areas, plus the high cost meant it could not compete with ADSL. The Marketing Director of Yahoo Viet Nam said Viet Nam had exploited only 5 per cent of its 3G capacity so far. Many participants expressed belief that the main reason for the limited number of 3G technology – based applications was the unreasonable profit sharing model between the operators and the content providers.

When a mobile application is developed in Viet Nam, the operators take 70 per cent while the content providers only receive 30 per cent. In contrast, at the Apple App Store the numbers are reversed, with the operator only taking 30 per cent and the content provider taking 70 per cent for each application sold. As a result, the development of applications in Viet Nam is quite limited.

Many seminar participants agreed that Viet Nam would have to wait for several years to see more optimisation of its 3G potential. — VNS

Tags: Vietnam 3G, Vietnam Telecom, Vietnam telecom maket

Posted by VBN on Nov 22 2010. 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