News From Telecom World

Viettel – Best operator in Vietnam

Posted on: October 14, 2008

The Vietnam leading GSM mobile operator, Viettel, now serves more than 20 million subscribers, a quarter of Vietnam population itself. Since its commencement in the market by October, 15th, 2004, Viettel has invested $300 million in implementing and managing a wide and high quality network with significant operations through all 63 provinces of the nation. It solemnly devotes itself to Vietnam’s development by providing affordable mobile service for anyone, building up rural-oriented communication system and steering the course of mobile sector in the country.

Despite the fact that Viettel has only four year experience in mobile operation, it’s proud to be a well-known brand of the most fast-growing mobile operator in Vietnam. During the past years, Viettel has been judged to be the network with fastest developing speed. To date, it shares 50% of the market, a giant step from the number zero in late 2004. Viettel is likewise the sole operator with high condensed network coverage in remote areas.
With its strong branding and value proposition, Viettel is also known as an innovative and caring cellular service provider with a customer-focused approach to business.

Viettel, except for voice and SMS, provides various creative and competitive services, i.e. Tomato – “No time limitation plan for low-income customers”; IShare – “Money transfer between prepaid subscribers”; etc.
Wireless Intelligence, an association of GSM mobile phone service operators has ranked Viettel 41th out of 648 GSM networks worldwide as of Q3/2008. However, the network’s strategy is to become one on the largest mobile network in the world by 2010.

Viettel Mobile’s launch was considered as a turning point in telecommunication market of Vietnam. Its nationwide coverage network and affordable pricing policy has caused a boom since 2004, making mobile service become commodity, not a kind of “luxurious spending” for the rich as before. The reasons for such achievement of Viettel Mobile are as followed:

Firstly, to prepare for the competition in the market, Viettel has built a perfect network with large coverage including 11.000 base stations. The network capacity is 25 million subscribers. It is expected that by the year end of 2008, Viettel will reach 14.000 base stations and the network capacity is 60 million subscribers.

Secondly, to meet the high demand of the local market, Viettel’s network is quite large, which covers upto 98% of the population. Unlike other operators, right from beginning, Viettel has concentrated on bringing mobile service to the poor in the rural, island and highland areas. That’s why Viettel is the first operator in Vietnam to deploy the selling socialization strategy in order to popularize the mobile service to all of Vietnamese people, even those in the most far away places. Now Viettel has a large distribution channel including 174 direct sales people, 50.000 retailers nation – wide, more than 600 direct shops, 1414 agents (more than 900 multi – services agents), 74 super – markets, meeting every demand of every customer.

Thirdly, to satisfy the need of young customers, Viettel has created a lot of mobile packages with attractive price such as Tomato, Daily, Economy, CIAO, Happy Zone. Since the launch of Viettel Mobile, the common tariff of mobile service in Vietnam has been reduced significantly by 8 times. Viettel is not only providing reasonably priced services, but a lot of VAS services on the network such as: background music, Call me back, GPRS, Roaming, SMS, Yahoo SMS Messenger, paying postpaid tariff via ATM… With a view to bringing best benefits for customers, Viettel always creates new content services aiming at social activities. Eg: Farmers’ friend (providing useful information for farmers such as farming product’s price), looking for martyr’s grave, weather news, taxi, stock market… Viettel is also the first operator in Vietnam to create several new policies for the sake of customer such as: Getting paid when answering the call (100 VND/minute).

Finally, the launch of Viettel Mobile has made a large contribution to the telecom industry of Vietnam when it breaks down the monopoly position of VNPT and contributes to complete the policies of the Ministry of Information and Communication in pricing, licensing, and interconnection regulation among networks. For example, Viettel has contributed in changing the mechanism from Government – regulated to market – oriented, thus giving the enterprises the self control right in their business. Specific contribution will be discussed later on.

As a result, total nationwide mobile subscribers have been doubled year by year and mobile phone could now be a kind of commodity to most of Vietnamese

Source: Total Telecom

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