Network service providers are repeatedly lowering fees in promotion campaigns, and as a result, users are jumping from service to service.

Network service providers are repeatedly lowering fees in promotion campaigns, and as a result, users are jumping from service to service.

The fiber cable market, which is dominated by the big telecom companies, VNPT, Viettel and FPT, now has two rookies, VTVcab and SCTV.

Being newcomers, VTVcab and SCTV are a good match for the experienced players.  They offer packages with much lower service fees than the average level and compete by offering 2-in-1 services (internet & TV). VTVcab and SCTV both have TV service advantages.

SCTV, for example, is providing a 2-in-1 service package at VND240,000 a month with a preferential fee of VND135,000 in the first 12 months.

An officer at SCTV’s call center said that if clients paid for 12-month use at VND1.62 million (VND135,000 a month x 12 months), they would have another 12-month free usage. Then the real service fee would be VND67,500 a month.

With VTVcab’s services, the real service fee is VND188,000 a month for the internet-plus-TV service package.

Viettel, the military telecom group, said it only provides FTTH services to new internet service subscribers in the inner city of Hanoi.

The cheapest service package, F15, with a speed of 15Mbps, is provided at a fee of VND190,000 a month.

If clients want TV service, they will have only have to pay VND50,000 more. Meanwhile, those, who pay service fee all at once will be able to enjoy free time.

For example, if they pay a 12-month fee, they will be able to use the service for 15 months.

Meanwhile, FPT’s subscribers paying VND3.78 million for 12-month use will be entitled to 14 months. The real service fee would be VND270,000 a month.

As such, SCTV’s service is 75 percent cheaper than FPT’s. However, if considering the transmission speed, the service packages offered by FPT and Viettel are five times faster than SCTV’s or VTVcab’s.

The lower service fees have prompted users to look for new service providers.

Manh Linh, a user in Dong Da district in Hanoi, admitted that he signed contracts with three service providers within three years just to enjoy preferences that service providers offer to new subscribers.

Chu Thanh Ha, chair of FPT Telecom, has asked for the watchdog agency to build a floor service fee for telecom services, warning that stiff competition would damage the internet service market.