Broadband price war in Vietnam

2 Nov 2006

Broadband providers in Vietnam are engaging in a price war. The ISP FPT Telecom sparked it off with the offer of a free modem to new subscribers signing up between 25 October and 30 November. The state-run Netsoft responded by offering a new modem and free installation on sign-up until 31 December. Then the military-sponsored Viettel entered the fray with the offer of three months’ free broadband, plus a free phone worth VND200,000 (USD13), free installation, and free local calls for twelve months for new ADSL subscribers. FPT Telecom its rivals’ promotions for being subsidised by the government, and says that it would lead to big losses. This was shrugged off by Viettel, which says the promotions are meant to attract more customers.