Vietnam’s telecom: from importing technology to exporting notions

^- ⁺ A^- A⁺ 29/11/2010

Vietnam’s telecom has made a great leap over the last 15 years: at first, it simply imported technologies and provided services domestically, but now it makes outward investment, exports services and sets new notions in the investment destination countries.

In 2007, the Vietnam Post and Telecommunication Corporation (VNPT) cooperated with an Australian partner to set up international call services. After that, it cooperated with Japanese, French and South Korean partners to set up a domestic fixed line system.

In 1995, Swedish Comvik Group, with its powerful finance and technology capabilities, joined a business cooperation contract (BCC) with VNPT, forming MobiFone and marking a milestone in Vietnam’s telecom industry: from that time, mobile phone sevice providers have made an official appearance in Vietnam.

In 1997, VinaPhone, the second mobile network in Vietnam was set up. Though VinaPhone did not “shake hands” with any foreign partners, but foreign technologies still played an important role in the designing and running of the network.

Cooperating with foreign partners to obtain capital and technologies was the main objective of Vietnamese telecom investors at that time. S-fone, HT Mobile (later VietnamMobile), and Beeline all have been following this path. Only Viettel thinks another way.

In fact, when preparing to provide mobile phone services, Viettel spend several years to seek and negotiate with foreign partners. However, at that moment, when the world’s telecom industry was in big difficulties, foreign investors all refused the invitation for cooperation, or set unreasonable conditions. As the result, the leaders of the military telecom company decided that they needed to do it themselves.

Vietnam can manage on its own in telecom industry? No one believed in this in early 2000s.

Viettel’s leaders discovered a very important thing: though Vietnam still could not create its own technologies, Vietnamese people could master technologies. Viettel should borrow money if it needs it, but it must not “borrow” the way of thinking and the way of doing business. The leaders believe that technologies, including the most expensive ones, would become gradually cheaper, while consumers would become richer. Most importantly, they understand that telecom is the basic demand of all people.

And Viettel’s network was set up in the way which was never seen before in Vietnam: the network was designed, built up and operated by Vietnamese people and it has been covering all cities and provinces since the day of inauguration. With Viettel, the concept “telecom for everybody and for every family” came true/emerged?. The concept rejects the previous way of thinking of telecom service s a luxury reserved only for high income earners.

The boom in the telecom industry has been witnessed in the past five years. The concept of popularizing telecom services has helped bring BTS to every commune and lower the service fee.

Vietnam

’s telecom services, which were once the most expensive in the world, have become equal or even cheaper than thaose in other countries in the region?. Mobile phones, which were once luxurious goods have become affordable for everyone.

… and to exporting notions

Vietnamese telecom enterprises have been not only paying attention to cement their positions on the domestic market, but also have been trying to reach out to the world.

Several years ago, very few Vietnamese people thought that Viettel would succeed with its investment project in

Cambodia

. Before Viettel set foot on Cambodia, the country received seven big service providers, six of whom were the “big guys” in the region and the world. However, Cambodia’s telecom still developed very slowly with high service fee and limited services.

Viettel decided to bring a new concept, “telecom 4Any”, i.e. telecom services for everyone, to the country. Different service packages have been provided which suit different classes in the society, while the call charges are lower by 30 percent than those offered by other service providers.

With the presence of Viettel, Cambodia’s telecom picture has seen big changes. Just after one year of operation, the number of mobile phone users increased from 15 percent to 40 percent, and fixed line phone from one to six percent, broadband Internet from 0.5 percent to 2 percent. The country’s connection readiness index jumped from 128/134 in 2009 to 117/133 in 2010.

As such, Vietnam has made a big leap over the last 15 years, from an investment receiver to investor. It has not only made outward investment, but has also exported a new notion of “telecom 4Any”. By 2015, this is expected to reach 500 million people in developing countries.

Source: vienamnet

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