VietNamNet Bridge – Vietnamese mobile network operators have been living on the traditional services, while the big telecom groups in the world have shifted to data services.

Pham Van Viet, Director of VietPace, has spent the last many years on learning about the information technology and communication (ICT).

According to Viet, in the first quarter of 2013, SMS and MMS messaging service of China Mobile just made up 7.4 percent of the total turnover, which was lower than the 8.3 percent in the first quarter of 2012.

Meanwhile, China Mobile’s turnover from data services increased from 28.5 percent in the first quarter of 2012 to 33.5 percent in the first quarter of 2013. The wireless connection output also increased from 11 percent to 16.6 percent.

In the first three months of 2013, the turnover from voice and SMS services dropped by reminbi3.3 billion in comparison with the same period of the last year.

Also according to Viet, in the third quarter of 2013, the US AT&T’s turnover from data service was $5.5 billion, increasing by $200 million over the second quarter of the same year, while the turnover from voice and messaging service decreased by $43 million to $9.95 billion. The group’s mobile device trade brought $2.02 billion, up by $100 million.

Viet has pointed out that the world’s biggest telecom groups no more focus on providing traditional services any more. They have shifted to the data business with service packages (voice/messaging/ mobile internet/data), increased the hardware business value

Viettel pioneers in Vietnam

Vietnamese mobile network operators have agreed that it is now the right time to change business methods like the telecom groups are doing.

Nguyen Manh Hung, Deputy General Director of the military telecom group Viettel, said voice and SMS services once brought 100 percent of the telcos’ turnover. However, the services now bring 65-75 percent only, while the proportion is believed to reduce to 25 percent in some more years. This means that the traditional services would be no longer the main bread earner for telcos.

According to Hung, “mobile network operators” need to change into “service providers.” At present, telecom groups take pride of their networks. But in the future, they would feel proud if they have many services attractive to customers, have strong growth, and qualified R&D workers.

While experts believe that fixed line would “die” sooner or later, Viettel thinks that broadband fixed line would develop. The telco may become one of the pioneers in the world who announces the shifting of their main business field from mobile to broadband fixed line.

The great advantage Viettel has which may help turn this into reality, is the group’s possess of a good broadband fixed line infrastructure system, just to that of the Vietnam Post and Telecommunication Group (VNPT).

New race kicked off

The representatives from other mobile network operators, including MobiFone, VinaPhone, Gtel and Vietnamobile, have also said that they see what the other big mobile networks in the world, such as AT&T, Springs, China Mobile are doing, and that it is now the right time to make changes to survive and grow.

When asked about the business strategies for the future, an executive of MobiFone said the business strategies would only be drawn up when MobiFone knows about its “fate.” Its governing body, VNPT, is still under the restructuring, while no decision has been made about the fates of MobiFone and VinaPhone, the two arms of VNPT.

Thanh Mai