Mobile Internet service develop 3G market

Customers are choosing Third Generation (3G) telecom providers based on their mobile internet service development. The service provides a comprehensive solution to mobile users, especially as internet access is available at high speed from mobiles or laptops.

Nguyen Anh Duc, deputy director of Viettel Group’s HCMC Branch, told the Daily on the phone that 2010 would see 3G services grow. He said the growth would occur when telecom providers begin to develop various 3 G services, especially mobile internet.

“Mobile internet service plays a crucial role in 3G subscriber attraction because it creates a favor condition for mobile users to access the internet. In addition, it brings high profits in comparison with others services like video call, TV mobile and video on demand,” he said.

According to Duc, during a two-month mobile internet trial, Viettel attracted an estimated 100,000 subscribers.

Thus, Viettel is working to develop network infrastructure to accommodate 3G services – which they plan to commercialise on March 15.

Like Viettel, CDMA network S-Fone has shown interest in the service when the price decreased 10-30%.

Tran Thien Thanh, director of S-Fone’s Zone No 2, said when mobile internet usage accounted for 30% of the company’s total turnover, profits would be high. To promote service development, S-Fone plans to build 1,000 base transceiver stations this year.

To date, S-Fone has around 200,000 subscribers using mobile internet.

Like S-Fone, MobiFone and Vinaphone expect to benefit from the service too. They hope to lure around 5 million subscribers.

According to Tuoi Tre newspaper, MobiFone has six million 3G subscribers, while Vinaphone’s tally is at 7 million. After just five months, Viettel has 1 million subscribers.

An industry insider said while it is an incredible number, it needs to be taken accordingly, especially since it was published in the local media.

“If it is true, Vietnam’s telecom market has huge potential,” he said.

When asked about its 3G subscribers, Duc denied sharing a specific number. However, he added telecom companies would earn much from 3G.

In its Vietnam telecom report, a UK-based BMI market monitor recently said 3G services would have a minimal contribution to the market in 2010’s first quarter.

The report blamed 3G’s early commercialization at the end of 2009 for the small amount of subscribers – just 100,000.

According to the researcher, the cost and availability of 3G compatible handsets are expected to be the main obstacles to 3G’s growth. BMI predicts around 4.5 million 3G customers at the end of 2013, equal to 2% of the total mobile user base.

Tags: 3G in Vietnam, Vietnam 3G market, Vietnam Mobile Internet, Vietnam Telecom, Vietnam telecom sector