Telecoms market eyes untapped potential
"The internet and mobile-phone coverage has
increased, and quality has improved. Prices have fallen, too, which
allows rural and remote areas to have more access," said Dr. Tran Minh
Tuan of the Information and Telecommunications Strategy Institute.
Tuan was speaking at the Vietnam Telecommunications 2013 expo held earlier this week in the city.
Despite higher industry turnover, profits have not risen. In addition,
the quality of internet bandwidth and mobile phones remains limited,
speakers said.
Average revenue for fixed and mobilephone users
continues to fall. Prepaid mobilephone users represent 90 percent of
the mobilephone market, which means low turnover and low profit, while
fixed phones have declined in the number of users and turnover.
The internet market includes three large companies, including Vietnam
Post and Telecommunication Corporation (VNPT), Viettel Group and
Financing and Promoting Technology (FPT).
For information
technology, the Government has issued many incentive policies for
enterprises that have helped improve electronics and hardware as well as
software and digital content growth.
Despite the average
growth of these three sectors, added value has been limited, and work
productivity remains low in comparison with regional countries. Poor
training of human resources is also another problem.
"To
develop the industry, the Government will promote equitisation of
State-owned telecommunication companies and tighten service prices,"
Tuan added.
Nguyen Manh Hung, deputy general director of
Viettel Group, said that a new definition should be created for the
national data network, instead of just "telecommunications".
"In the future, telecommunication service providers will give up their
current major services because telecommunications combined with
information technology has entered every area of our lives, and created
four to five times higher income than telecoms," Hung said at the
seminar.
Telecommunications takes up 3-5 percent of GDP and
will increase as more people begin to familiarise themselves with the
national data network because information is now related to data.
"At present, not many countries are aware about this and if Vietnam
recognises this, we would have a chance to be first by expanding
bandwidth to increase the value of information," he added.
To
transfer telecommunication infrastructure to the national information
infrastructure, Hung suggested that every household should have access
to the internet, 10 Mbps through smartphone, and a 100 Mbps line.
"Bandwidth is necessary to serve all aspects of life," he said.
In the future, the price of equipment will contribute to the success of this strategy.
"We have calculated that if equipment were under 20 USD, the pace of
progress would be quicker. Viettel in 2014 will offer smartphones for
30-35 USD, but to have them for under 20 USD, we must wait for
assistance from the Government," Hung added.
" Vietnam
still has major potential for national information infrastructure.
Mobilephone bandwidth and cloud computing are important."
According to the International Telecommunication Union's social
telecommunication report, in 2012 Vietnam rose five positions from
86 out of 152 to 81 out of 162 countries in the growth of
telecommunications.
It ranked fourth out of 11 in Southeast
Asia , 12th out of 27 in Asia-Pacific. In the last decade, it jumped
from 107th to 81st place.
In 2011, according to A.T Kearney,
Vietnam ranked eighth of 50 countries that are considered to be the
most attractive for software outsourcing. This was two positions higher
than in 2009, and 18 positions higher than in 2005.-VNA