Competition heats up for 3G technology licences
26-APR-2008 Intellasia | Vietnam News page 16
Apr 26, 2008 - 7:06:00 AM
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Among the nation's largest mobile providers, competition for third-generation (3G) technology licences is heating up.
The licences, required to apply the 3G technology, are expected to deliver the recipients firm comparative advantage. MobiFone, Viettel and VinaPhone are the leading candidates so far owing to their. combined 90% share of the local market.
Pham Hong Hai from the Ministry of Information and Communications, said previous contests in other countries for 3G licences have been fierce, and costly. Moreover, the benefits of the technology are sometimes said not to match the money spent to secure a licence.
Many mobile providers in Europe nearly went under after receiving the licences, H:ii said.
In Vietnam, however, a provider is required to pass an examination which tests 3G readiness before getting a licence.
The idea behind the examination is to award licences to only the most qualified candidates: those who can deploy the technology perfectly.
Hai said the ministry will select a provider who can afford to run 3G technology properly while providing high-quality, and competitive charges for its users.
Nguyen Manh Hung, deputy general director of Viettel, said a test is a fair way in which to assess the competitors. "But, a clear and specific target should be identified to not only help the providers run the technology, but to avoid the state incurring financial loss.
Mobile providers who have already been utilising 2G technology, should be able to deploy 3G technology quickly. In addition, a mobile provider that has a large number of users would also have a great advantage in running the technology.
General director of Vietnam Mobile Telecom Services Co (VMS MobileFone) Le Ngoc Minh agrees. "Study of the global telecom industry indicates a successful 3G business benefits from experience in the application of 2G and 2.5G technology. We have been utilising both for the past 15 years."
And the winner are...
As expected, MobiFone, Viettel and VinaPhone are the firm favourites to pass the upcoming examination, and get the much sought after licences.
Industry insiders have said that of the seven mobile providers vying for the licences, MobiFone has emerged as the most well-placed.
MobiFone recently announced that its mobile service accounts for 40% of the market share. The company certainly fulfils the 3G licence requirements in terms of human resources, finance and service capabilities, and effective business plan.
In co-ordination with Orange-France Telecom, MobiFone recently showcased the latter's 3G services at a recent expo in HCM City to much jubilation.
Le Ngoc Minh said to prepare for 3G technology, MobiFone targets more mobile subscribers, revenue and market share.
In addition, MobiFone was chosen as the "most favourite mobile network" and ranks in the top 20 powerful Vietnamese businesses.
The military-run Viettel has the advantage of the greatest network coverage of the seven mobile providers. It also has the largest number of mobile subscribers in the country.
VinaPhone is also one of the top candidates. The remaining four mobile providers S-Fone, EVNTelecom, HT Mobile and GTel will have a long way to go before threatening VinaPhone for third position.
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