Tense competition among small mobile networks

Beeline has ambition to take the leading position among small mobile networks while S-Fone is planning technological transfer to dominate market, Vietnamobile also launched the low-charge package, VnExpress reported.
On June 24, Beeline announced to “return” to market with the $500 million investment commitment of foreign partner, making a think of new competition in the mobile telecommunication market.

In addition, Beeline also announced the new CEO Michael Cluzel—who is experienced in Asia Pacific telecommunication market.

The change aims to adapt the real conditions of the market and serious lessons which they have learned after 2 years of presence in Vietnam, Beeline explained. With the new investment, Beeline has extra financial strength to expand coverage, upgrade quality and increase market share. The new CEO shared: “Our ambition is to become the forth largest mobile telecom network in Vietnam, after MobiFone, VinaPhone and Viettel. This means that we will stand the first among remaining four networks”.

Without racing in cost reduction, Beeline said it would focus on developing technological layer, network, and coverage scope to soon reach millions of subscribers instead of current number of 800,000.

With the same ambition to take lead among small mobile service providers, Vietnamobile has continuously launched an array of super cheap programs enabling internal calls free of charge and very low call costs for calls with other networks. Among four small networks (Vietnamobile, Beeline, S-Fone and EVN Telecom), Vietnamobile now has the largest number of subscribers, almost 10 million. “We will continue offering shocked programs to stimulate demand and occupy the remaining market share”, a representative noted.

Similarly, S-Fone, after suffering financial difficulties in a short time because of foreign partner’s disagreement, also stated to come back market. Its General Director Pham Tien Thinh said that his company was completing a transformation through seeking domestic and foreign strategic partners. As capital issue is settled, it will focus on developing competitive activities in terms of cost, quality and valued added services.

Meanwhile, EVN Telecom with the prefix 096 is fading in the market despite it is the only one of the networks carrying out 3G licensing with total investment capital of trillions of dong. Due to limitations in technology, monopoly thought, the firm had faced many barriers in calling investment.
Specialists expected, from to 2013, Vietnam’s telecom market will develop in dept after overheated growth. So, in order to survive, telecom service providers must concentrate on building infrastructure, increasing quality and network. – Vietbiz24

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Posted by VBN on Jun 28 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

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