MVNOs blame fierce competition for hesitancy to launch services

8 Feb 2011

VTC Telecom and Duong Duong Telecom, two companies licensed to provide mobile virtual network operator (MVNO) services in Vietnam, have cited strong competition in the country’s mobile market as the reason behind their hesitancy to launch operations. According to a report by VietNamNet, both companies have blamed the delay in starting services on difficulties in developing customer bases and marketing strategies to compete with other providers with existing telecommunications infrastructure. ‘VTC is exploring market segments and considering carefully the most suitable time to bring these services to the market,’ Nguyen Hoang Phong, VTC’s director, told VietNamNet.

According to TeleGeography’s GlobalComms Database, the Ministry of Information and Communications (MIC) approved state-run Vietnam Multimedia Corporation’s (VTC’s) application to operate as an MVNO April 2009. VTC, which operates a number of multimedia related services in the country and is a licensed WiMAX operator, was awarded its licence in June 2010 and pledged to launch 3G services over EVN Telecom’s network by the end of the year. In August 2009 the MIC granted a further MVNO licence to Duong Duong Telecom (also known as Indochina Telecom), which had said it planned to share 3G network facilities with military-owned Viettel and launch services in 1Q10.

Vietnam, Ministry of Information and Communications (MIC), Vietnam Multimedia Corporation (VTC)