Mobile networks battle for market share

Mobile networks battle for market share

Vietnam’s mobile phone networks are fighting to increase their share of a market expected to have 50 million users within two years.


Mobile phones are becoming an indispensable part of Vietnamese life, especially for youngsters

MobiFone marketing chief Do Viet Hung said his company was trying to sign up between 7.5 million and 10 million new users this year.

MobiFone, Viettel and VinaPhone are all offering special discounts as they seek a bigger slice of a market expected to stabilize in 2010 with 50 million customers.

In retaliation, S-Fone earlier this week unveiled a VND1 package.

Under the deal, customers will pay VND216 for the first six seconds of a call and VND36 for each second of the first minute.

From the second minute of calls to other S-Fone users, customers will be charged VND1 per second.

For calls to non-S-Fone subscribers, the second minute will be charged at VND36 a second.

S-Fone Managing Director Ho Hong Son said the discount package would not undermine his company’s profitability.

“In the increasingly competitive market, we had to carefully weigh different factors before deciding to offer this package,” Son said.

At the end of 2007, S-Phone said it had more than 3.5 million users.

Recent reports from its rivals showed that Viettel was the market leader with 14 million users, followed by MobiFone with 12 million and VinaPhone with 10 million.

Last month Viettel asked the Ministry of Information and Communications (MIC) for approval for a 25 percent discount service package.

However the Ministry only approved a 15 percent discount.

A recent announcement from the Ministry allowed mobile networks to decide their own service rates.

S-Fone’s Son said the mobile phone battle could intensify, with Viettel possibly lowering its rates after the Tet holiday, forcing MobiFone and VinaPhone to follow.

Source: Lao Dong