Conference on 4G hears of disappointing business results from 3G services.
Despite 3G having received huge investment in Vietnam the related business performance has not met expectations, Viettel’s Technology Director Ho Chi Dung told the “How Vietnam will Achieve 4G” conference held on October 21.
3G subscribers with Viettel only account for 30 per cent of the total, against an average of 45 per cent in Southeast Asia. It took Viettel five years to persuade 30 per cent of 2G subscribers to move to 3G but Thai providers took only five months to achieve the same result.
Mr. Dung also pointed out that the 3G speed is slow in some areas. Hanoi, for example, has a complicated outlay. There are many small lanes, which create difficulties in 3G transmission. Meanwhile, it can take five years to secure a license to build a 3G base station. Even so, 90 per cent of examinations by Viettel showed a 3G speed of over 1 megabyte per second.
He put forward several reasons for the poor business performance. Business methods have not been reformed, and the 3G business model is similar to the 2G business model. The experience customers seek from 3G is much different from the 2G experience sought.
While the 3G business performance has not been as good as expected, Viettel has nonetheless recorded a profit in the four years it's provided services.
Mr. Dung said that the business performance is not as good as being expected. However, Viettel said that it collected enough investment capital from 3G business long time ago. four year after 3G came in to effect, it collected enough investment capital from 3G profit. Hope it is clear enough )
A VNPT representative told the conference that its 3G services cover around 90 per cent of Vietnam’s territory. Even so, it has received about 20,000 complaints from customers regarding its 3G coverage. It is simply impossible, he said, to provide 3G everywhere, for example in a building’s basement. He also complained about the difficulty to securing a license to build 3G base stations.
Both Viettel and VNPT agreed that their experience in providing 3G service puts them in a good position to better provide 4G services.