VNPT wins over Viettel in ‘$5.1 bln revenue race’

Although the military-run Viettel lagged behind Vietnam Post and Telecommunication Group (VNPT) in the VND100 trillion (US$5.14 billion) revenue race in 2010, it has deserved as the winner in terms of real capacity and achievements.

VNPT has estimated to have gained around VND101.569 trillion in revenues, a year-on-year rise of 22 percent, while the rival Viettel has expected to reach VND91.134 trillion in revenues, surging 50 percent over 2009, according to the Ministry of Information and Communications.

Eventually, VNPT won the race, but real business quality of Viettel made it become the winner.

Average annual labor productivity of Viettel reached over VND4 billion a person and average monthly income was estimated at VND11.7 million per person a month. The equivalent figures from VNPT are unknown, but VNPT has more employees than Viettel, 90,000 compare to 24,500.

This year, the group has developed 46.3 million new mobile subscribers and 1.17 million 3G subscribers, bringing total subscriber number in the whole network to 49.9 million.

The win of VNPT is absolute and easily comprehensive because its revenues came from two big mobile providers MobiFone and VinaPhone. Moreover, VNPT had gained “monopoly” 20 years ahead of Viettel.

So, compared to the later-established Viettel, VNPT owns some advantages in experience and market share.

But Viettel has proven its capacity through “big leaps” in recent years. After almost 10 years, Viettel has become the big rival of VNPT.

No one believed that it took only four years for Viettel to surpass VNPT’s two mobile networks in terms of subscriber volume in Vietnam. While Viettel was accelerating, VNPT networks moved slowly.

Thus, Viettel has gained certain achievements and expanded overseas. And the revenues of 91.134 trillion dong were the successful sign of the group.

Analysts predicted it was inevitable Viettel could obtain the top position of VNPT in the near future.

The race was set in the beginning of 2010 by the two state-run giants. According to the initial plans, VNPT targeted to earn VND94 trillion, up 20 percent whilst Viettel set VND96 trillion, jumping 60 percent against one year earlier.

However, right after Viettel announced its 2010 revenue target, VNPT decided to adjust its targets up by VND6 trillion, showing its determination to keep its top position by gaining revenues of VND100 trillion for the first time.

The ambitious goal came along with the targeted VND15-16 trillion in minimal profit and VND8.5-8.6 trillion in tax payments.

Similarly, then Nguyen Manh Hung-Deputy general director of Viettel also confirmed Viettel modified its revenue target to more than VND100 trillion.

Experts said that VNPT had the major revenue source from two mobile networks VinaPhone and MobiFone with a combined market share of 55.41 percent in Vietnam.

In addition, the firm has another revenue source from postal, broadband internet, fixed telephone services.

For Viettel, its 60 percent revenues come from mobile information services and others from real estate, handset distribution, post and internet.

After big non-tired efforts, VNPT reported obtaining more than VND43 trillion in revenues, meeting 42 percent of the year’s target during first half. Likewise, Viettel announced to go through a half of its revenue way.

The race was overheated in the second half when Viettel tried to place VNPT behind.

With the current revenue structure, the win or failure of VNPT on the way to over VND100 trillion was burdened on MobiFone and VinaPhone.

Following a 10-15 percent reduction in service charges in August, VNPT then launched 100 percent promotional programs for both old and new subscribers from September to the end of 2010 and attracted a number of new customers.

Differently, VNPT both offered promotion programs such as presenting additional 100 percent of scratch card value or expanding mobile business to regional countries like Laos, Cambodia and Bangladesh and launching new strategies.

The company holds stakes in Vinaconex, Military Bank, and earns revenues from export import, real estate.- DDDN/Tuoi Tre

Tags: Viettel, VNPT