With 3G technology, mobile providers in the country will be able to provide more value-added services for their mobile users such as videophone, on-line video streaming and high-speed Internet and music download.

Pham Hong Hai, head of Telecom Division under the ministry, forecasted that the local telecom market could generate total turnover of US$6-7 billion by 2010, a huge market for mobile service providers.

“At present, telecom providers are racing to complete their 3G bidding application to take a market share,” Hai added.

Under the ministry’s plan, it will select four telecom operators from the bidding and give them three months to prepare for 3G deployment. The deadline for 3G bidding application is February 18.

Bui Quoc Viet, spokesman of Vietnam Post and Communications Group, claimed that its members, including MobiFone and Vinaphone, were investing heavily in network upgrading to accommodate 3G technology.

Viet estimated that VNPT would invest US$1 billion in the new technology.

“With strong finance, we plan to employ foreign consultants for 3G deployment,” Viet added.

Viettel has yet to reveal its foreign partner strategy and roll-out service plan. However, the country’s biggest mobile operator is expected to hold 40% of the market in terms of the number of mobile subscribers by May.

Viettel is seen as the best candidate for 3G deployment after their success in 2008.

Last year Viettel’s turnover reached VND33 trillion, doubling 2007’s turnover, while expanding into Cambodia and taking 20% of the international calling market there.

In their effort to receive 3G licensing, EVN Telecom on Monday announced that they would begin to hook up with an underwater optic cable network in the first quarter of this year. The cable links major telecom hubs Hong Kong, Singapore, Japan and the U.S.

Dinh The Phuc, director of EVN Telecom, said that EVN had connected Vietnam with telecom hubs via connection gates in Mong Cai, Lang Son and Moc Bai. The cable’s initial capacity will be 320 Gbps (Gigabytes per second) and will be upgraded to 5.6 Tbps (Terabytes per second).

“When the cable operates, it will create a favorable condition for EVN to grasp its 3G license,” Phuc said. EVN now has a 40,000 kilometer cable network and 3.5 million subscribers, 80% of them on wireless landlines.

Last year, EVN held 18% of the landline subscriber market shares, behind VNPT’s 72%. This year, EVN targets to add 4.6 million subscribers and reach a turnover of VND4 trillion.

S-Fone, the country’s first CDMA operator, are also preparing for 3G bidding. Meanwhile, HT Mobile has a few chances for 3G deployment because it is on the way to transfer CDMA technology to GSM. HT Mobile plans to debut its GSM network in the first quarter with a new brand name, Vietnamobile.

The Ministry of Information and Communication reported that the country has nearly 80 million mobile subscribers, of which Viettel accounts for 26 million, Mobifone 26 million and Vinaphone 20 million. The industry has seen 30% annual growth in recent years.