VNPT to cut charges; price war looms

28 Feb 2007

Vietnam Post and Telecoms (VNPT), the state-owned entity which runs cellcos VinaPhone and MobiFone, has announced that charges will be reduced by 10%-20% from the end of March. This follows Viettel’s lead, which from 1 February cut monthly fees by 50% for post-paid customers using more than VND200,000 (USD12) a month. Vietnam’s other three cellcos, S-Fone, EVN Telecom and HT Mobile, say they are ready for a potential price war. Analysts say that all the cellcos will have to cut fees in order to retain customers in the country’s savage market. According to TeleGeography’s GlobalComms database, Vietnam had just under 20 million mobile subscribers at the end of 2006, with Viettel leading the market with 7.3 million.