All four existing MVNOs, iTel, Wintel, Local and VNSky, on October 10 lodged an urgent appeal to MIC related to the command to stop activities to develop new subscribers through online channels.

In the document sent to MIC, the MVNOs said that they observed MIC’s instruction to stop seeking new subscribers through the agent network starting September 10, 2023. 

The network operators stopped all provision of telecommunications to the channel system and strictly complied with the cessation. They have also reviewed the information of applicant subscribers, and applied technological solutions to restrict the activation of subscribers registered in other people's names.

The network operators contacted C06 of the Ministry of Public Security to ask for permission to connect the national database on population to confirm authentication of subscribers’ information. 

Regarding cooperation with channels such as The Gioi Di Dong (Mobile World), FPT Shop and VNPost, the MVNOs have been conducting negotiations to obtain an agreement with the units to develop subscribers through prestigious chains appointed by MIC.

As instructed by the Authority of Telecommunications, three MVNOs also stopped developing subscribers via online channels. They informed clients and relevant parties about the stoppage prior to 10pm October 9 and officially implemented the decision at 10 pm October 10.

MVNOs complain 

In the urgent dispatch to MIC, the three MNVOs stressed that the implementation of the watchdog agency’s instruction will lead to difficulties in maintaining their business activities.

They said they have no channel to seek subscribers as they have stopped cooperation with sale agents, and it will take time to set up fixed service provision points.

If they cannot develop new subscribers, they won’t have revenue to cover operation costs, which may lead to business suspension, affecting the benefits of clients, workers and enterprises.

They also complained that they are facing difficulties in customer care because of the lack of effective interaction channels.

An MVNO told VietNamNet that after MIC issued the list of prestigious distribution chains for the operators to consider for cooperation, the chains tripled the required commissions for subscriber development. This resulted in a sharp cost increase and lower profits.

If MVNOs build their own store networks, the average cost to maintain a virtual network at this time would be VND30 billion a month. The total revenue of the operators will not be high enough to cover expenses to maintain the self-distribution networks.

The operators stressed that the clients who have inactivated KIT won’t have a tool to activate and use the service they have bought. This will impact customers’ benefits and may spark lawsuits and complaints. Also, the clients’ ability to use telecom services will be affected due to a decline in telcos’ distribution capability.

More seriously, MVNOs warned that this may affect the effort to change customer habits from offline to online purchases.

They said that online sales and service provision is a trend. All products and services can be transacted through online channels, including services requiring high security such as financial services and expensive products such as electronic devices.

With the capability of approaching clients quickly and economically, seeking subscribers via online channels is suitable to the cost-optimizing strategy being pursued by MVNOs.

Explaining the MIC’s decision on requesting operators to stop developing subscribers via online channels, experts said that online registration has created a loophole for sale agents to activate sim cards to sell in the market. As the online registration still cannot be controlled, it may be exploited by someone.

However, they also said that online registration is a growing trend and it will develop strongly in the world.

Le My