VietNamNet Bridge – The door to the mobile telecom market has
nearly shut before mobile virtual network operators (MVNO). Experts believe
that the licensed MVNOs were wise enough not to enter the market. If they had
done this, they would have swept away by the storm in the market.
Virtual network just an illusion
On August 19, 2008, the Ministry
of Information and Communication officially granted the license to set up a MVN
and develop mobile telecom services to Dong Duong Telecom.
This was the first MVN in Vietnam
which shares frequency resource with another network and provides services to
customers under the mode of retailing.
Just a short time after the
license was granted, VTC and then FPT also asked for the permission for MVN.
VTC and FPT might think that this
was really a lucrative business field, because they did not need to spend money
to develop infrastructure, but still would be able to provide services. They
might also have some other reasons to jump on the bandwagon.
However, at that time,
specialists warned that the stiff telecom service market would not offer many
opportunities for virtual networks, considered as the parasite living on
others’ bodies.
And the specialists are right. No
miracle has happened to help the MNVOs fulfill their dreams. Since the
competition on the telecom market is too stiff, none of the licensed network
operators has dared to join the market. The licenses for MVN have been kept in
the companies’ drawers, because they still have not officially provided
services.
Truong Dinh Anh, former General
Director of FPT, once said on Buu Dien newspaper that the telecom market in
Vietnam has become “brimful” with the three leading network operators MobiFone,
VinaPhone and Viettel alone holding 95 percent of the market share already.
“We could not see any
opportunities to enter the market at this moment,” Anh said.
“Now or never” - message released to MVNOs
MIC has threatened to revoke the
licenses on running MVN granted before to Dong Duong Telecom and VTC, if they
cannot give reasonable explanations about the tardiness in providing services
after the licensing.
MIC, which has been criticized
for “tolerating” the mobile network operators because it has not revoked the
licenses granted before to the two telcos, has explained that MIC had reasons
to do that.
In fact, according to Pham Hong
Hai, Director of the Telecom Department under MIC, in 2011, the department
decided to revoke the license from Dong Duong Telecom. However, the department
later withdrew the decision after Dong Duong Telecom gave reasonable
explanations and committed to begin providing services soon.
However, Hai said, if the
enterprises “still keep quiet and make no move”, MIC would have to revoke
licenses.
When asked about the reasons
behind the delay of the two network operators in implementing their registered
projects, Hai said that the main problem lies in the agreements with the
partners in sharing the same infrastructure systems.
According to Dau tu, Dong Duong
Telecom has not reached a detailed agreement with Viettel on the sharing of the
3G network infrastructure.
VTC, though having a detailed
agreement on sharing 3G infrastructure with EVN Telecom, still cannot move
ahead, because EVN Telecom, due to its problems, has merged into Viettel. This
means that VTC would have to re-negotiate the terms of the agreement with
Viettel.
It would be very difficult to
negotiate for an agreement to share the 3G infrastructure with EVN Telecom. The
problem is that the 3G license was granted to the joint name EVN Telecom and
Vietnamobile. Meanwhile, one year after EVN Telecom merged into Viettel, it
remains unclear about how to share the bandwidth.
As such, Dong Duong Telecom and
VTC have been on the passive voice because they have to “sponge” on Viettel’s
3G network.
However, experts believe that the
reasoned technical problems are just the “tip of the iceberg.” The real reason
behind the slow project implementation should be the gloomy prospect for the
new comers in the telecom market.
Compiled by C. V
Business & Investment Opportunities
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