Telecoms firms turn to digital content

Telecommunications firms are turning towards developing their own digital content, the Vietnam Telecommunications Authority (VNTA) under the Ministry of Information and Communications has said.
Telecoms firms turn to digital content ảnh 1Installing telecommunication infrastructure (Photo: VNA)
Hanoi (VNS/VNA) - Telecommunications firms areturning towards developing their own digital content, the VietnamTelecommunications Authority (VNTA) under the Ministry of Information andCommunications has said.

Mobile service revenue is mainly based on traditionaltelecommunication services, with revenue from voice calls and SMS messagesaccounting for 76.6 percent. 

With tightened management over pre-activated SIM cards, thenumber of mobile phone subscriptions was 125.8 million last year, ayear-on-year decrease of 3.5 percent.

However, the number of broadband subscribers has increasedsignificantly, with mobile broadband (3G, 4G) having 61.3 millionsubscriptions, accounting for 48.7 percent of the total number of mobilesubscriptions.

The total market share of the three largest enterprises,Vinaphone, MobiFone, and Viettel, accounted for more than 96.2 percent lastyear, said VNTA.

Commenting on the telecommunications market, Huynh Quang Liem,deputy general director of Vinaphone's VNPT said traditional telecommunicationsservices were declining.

Specifically, the use of voice call services decreased by 18percent last year, while data service use tripled.

Deputy Minister of Information and Communications Pham HongHai said global trends would affect the country's telecommunications marketsuch as the impact of the Internet of Things (IoT) and cross-border services.

Facing this situation, Vietnamese telecommunicationenterprises have shifted to developing digital services.

For example, last year VNPT launched its digitaltransformation efforts with the 'VNPT 4.0' strategy.

Its digital services grew strongly, as the fintech servicewith the VNPT Pay application achieved a 60 times increase in cash flow.

Along with that, VNPT made a breakthrough in infrastructureinvestment for mobile networks, fixed broadband, information technologyservices and digital services.

Meanwhile, MobiFone has also digitised a lot of internaloperations such as e-office, ERP (enterprise resource planning) software andinfrastructure.

MobiFone said it would use modern technologies to automateits entire infrastructure as well as customer transaction points.

The country’s digital infrastructure and services have developedstrongly since last year, said VNTA.

Revenue from data increased to about 30 percent of totalservice revenue.

The cloud market has a turnover of about 220 million USD witha growth rate of 40 percent per year.

The Internet economy is estimated to have a size of 12billion USD with a growth rate of 38 percent annually.

To prepare infrastructure for the digital economy and digitalsociety, and deploy national digital transformation, telecommunicationsbusinesses are focusing on promoting the development of important digitalinfrastructure this year.

First is building a cloud application programme fore-government.

For IoT infrastructure, companies are required to promote thedeployment of IoT services on the national mobile telecommunications network toset a foundation for the development of smart agriculture, smart transport andsmart cities.

Regarding e-financial infrastructure, VNTA will promotecomprehensive finance and non-cash payment by guiding three telecommunicationsbusinesses to pilot mobile money services.

Deputy Minister Pham Hong Hai said the Ministry ofInformation and Communications would study and propose appropriate managementmethods to promote the sustainable development of the telecommunicationsmarket./.
VNA

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