Competition among cell phone operators is becoming stiffer, prompting them to rush to provide new technology services aimed at strengthening their market position, especially toward the end of this year.

Vietnam Military Telecom Corporation (Viettel) said it has been expanding its trial third generation network (3G) coverage to 17 provinces and cities. It plans to make the service operational nationwide next year.

Over the period, Viettel will provide video calls, and mobile internet and eight value-added services including Mobile TV, Imuzik 3G, Mclip, Vmail, Websurf, Mstore, Wapsite and game online.

Customers including pre-paid and post paid mobile phone subscribers can use the service at network coverage areas by sending a SMS to 161.

VMS-Mobifone on Dec. 16 officially started their 3G, becoming the second provider in the nation to offer the service after Vinaphone.

It is expected that Mobifone will provide 3G coverage to almost 100 percent of urban cities and provinces three months after receiving certification.

While the three largest mobile phone providers are gearing up for the 3G service race, there has been fierce competition among smaller telecom companies.

Beeline plans to expand its coverage to 19 cities and provinces nationwide. The mobile phone provider’s general director said it has been expanding its coverage with a desire to provide nationwide service and occupy a market share of 20 to 30 percent next year.

In the next 15 years, GTel-Beeline’s parent company – plans to invest 1.8 billion USD in Vietnam . After four months operations, Beeline has developed around 2.3 million subscribers.

S-Fone has also announced a change, through a co-operation agreement with the Republic of Korea ’s SK Telecom to set up a joint venture to improve its competitiveness.

Nguyen Hong Son, director of S-Fone said Saigon Postal – a partner of SK Telecom will hold a major stake and insist on following Code Division Multiple Access (CDMA) technologies.

The provider officially started their operation in 2003 with nearly 2.3 million subscribers.

Competition is expected to reduce mobile phone costs as providers seek to retain customers by offering promotional programmes and expanded network coverage./.