In 2009, total turnover of Vietnam's telecommunication sector was estimated at over 150 trillion dong, increasing over 62 percent against 2008's figure, according to the Ministry of Information and Communications (MIC).
However, deputy minister of information and communications, Le Nam, said that although Vietnam's telecommunications market has seen a rapid growth, even in "hot" development period but it is not sustainable.
The reason is that enterprises have been using less efficient telecom resources along with widespread promotion programmes, causing price competitions. In addition, telecom firms is sharing infrastructure and facing difficulties in developing infrastructure.
According to statistic from MIC, Vietnam's total number of subscribers in 2009 reached 107.5 million, averaging 126.4 phones per 100 people. Of which, mobile phone subscribers accounted for 85.7 percent.
In 2009, many experts predicted that the development of mobile phone subscribers would stand still. Instead, telecom firms would launch a series of value-added services. But in fact, networks were still racing to develop subscribers with many "shocking" promotion programmes.
Till date, big network providers such as Viettel, VinaPhone andMobiFone reached tens of million of subscribers each, newly enterprises like Vietnamobile and Beeline also exceeded the figure of over one million subscribers each. However, data on real subscribers of networks has not been defined yet.
If the total number of mobile phone subscribers of Vietnam reached over 92 million, providers said that only 50 percent of subscribers are in need of real use and the remaining is "virtual" subscribers. It means that customers make use of promotion programmes to buy Subscriber Identity Module (SIM) and then they will throwaway SIM when it runs out of money. The situation that a person owning many SIMs and buying SIMs easily is a big challenge for telecom sector.
Earlier, the telecoms market witnessed only "virtual" subscribers on mobile phone, but now, it sees "virtual" subscribers on fixed services due to the fierce competition of enterprises.
Representative from Saigon Post and Telecommunications Service Joint Stock Corp (SPT) said that "virtual" subscribers caused great waste in investing and building infrastructure.
Recently, telecom firms continue to complain power sector about increasing the rents of electric poles to hang information cables. Vietnam Post and Telecommunication Group (VNPT) had to send documents to authorities to ask Electricity of Vietnam (EVN) not to stop cutting telecommunications cables.
According to VNPT, EVN increased the rents for hanging telecommunications cables on electric poles by 3.98-8.08 times against previous price benchmark, causing high costs for telecom firms.
MIC sent documents asking EVN and VNPT to negotiate to offer suitable rent.
Representative from FPT Joint Stock Co also said that, in 2009, FPT deployed fixed service in 17 provinces and cities. However, FPT also met difficulties in developing infrastructure due to EVN increased the rents of electric poles. FPT also petitioned to MIC to give timely directions to create conditions for building infrastructure.
Facing this issue, Viettel's deputy general director, Nguyen Manh Hung, said that his firm planned to build about 300,000 poles for hanging telecom cables. Currently, Viettel has finalised building 250,000 poles with total costs of around one trillion dong.
According to Hung, this initiative helped his firm save costs by 3-4 times against renting electric poles. If Viettel allows other telecom firms hire these poles, the cost will be only one tenth.
However, Viettel's representative said that the issue is not money but it is effort and time. In order to have a pole for a five kilometer route, the firm had to spend nearly two months.
Therefore, MIC needs to have timely intervention to control the sole situation, petitioned Hung.
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