Vietnam Top Three Mobile Networks Seeking to Cut 20% Charges
Viettel, MobiFone and VinaPhone, the three largest mobile network operators in Vietnam, have asked permission from the Ministry of Information and Communications (MoIC) to cut service charges by between 15% and 20%.
This is the only solution for competition among networks after the MoIC’s decree on tightening promotional campaigns for mobile subscribers took effect from July 1.
The three companies had asked the ministry for the charge reductions since February, but no permission has been made; and the MoIC has requested them to announce mobile phone tariff price structures for 2010, Deputy Minister Le Nam Thang said.
He said the ministry will carefully consider the proposals to ensure benefits of customers.
Experts in the industry commented price war will not bring in a sustainable development for Vietnam’s telecom market in the long term as profits of network operators will be hurt due to low charges.
If approved, mobile call charges are averaged at VND960 per minute compared to current level at VND1,200; meanwhile, the cost price for Viettel calls is VND800/minute.
The U.K.-based market researcher Business Monitor International (BMI) forecast the Average Revenue per User (ARPU) of mobile networks may fall 13.7% to US$4.11 in 2010 and 7.4% to US$3.8 in 2011 as a result of tariff cuts. (Investment)
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