3G-licence winners face tough circumstances
Experts said that the competition among the 3G licence winners will be much thougher than the 3G exams.
The total deposits of the four winners was up to 8.1 trillion dong ($450 million), of which Viettel accounted for 4.5 trillion dong, the remaining belonging to VinaPhone, MobiFone and EVN Telecom – Hanoi Telecom.
The first worry for the 3G licence winners is that if they don’t fulfil their commitments, they will have to pay a big fine, which will be deducted from their deposits.
At the licence granting ceremony, Viettel’s general director Hoang Anh Xuan surprised the attendents saying: “We were very eager for the 3G licence at the beginning but when we began implementing the 3G network, we also began worrying with the 3G licence. If you are not careful, 3G may be a trap that will ruin your business”.
According to Viettel’s commitment, the group will invest up to 12,789 billion dong ($710.5 million) in the 3G network within three years while other competitors will invest just a half of this number.
To use 3G services, customers have to buy 3G technology-based mobile phones, which are very expensive. Currently, only a small number of clients own 3G phones. It is a big problem for 3G service providers to regain their investment in 3G networks.
Notably, Viettel committed to cover 3G services to the rural areas while 3G phones nearly don’t exist in this region.
VinaPhone committed to supply 3G services only one month since the 3G licence takes effect. The time is not long while it is rumoured that this company is facing difficulties in the 3G equipment bidding process.
In a press release issued on August 13th, VinaPhone did not state the official date for introducing 3G services. It only said to supply the services as soon as possible.
Another problem for VinaPhone is its cooperation with the new mobile network Beeline to use the 3G licence. The two sides have just announced their cooperation to develop 3G services but no detailed plan for cooperation.
MobiFone’s worry is how to quickly implement 3G while maintaining its number one position for service quality in Vietnam. This company has planned to supply 3G services in December 2009.
MobiFone’s 3G network will cover 100 percent of the populated urban areas in 63 provinces and cities at the time of inauguration of the new network. After that, it will bring 3G services to other residential areas, then suburbs and the countryside.
MobiFone’s deputy director Do Vu Anh spoke in the licence granting ceremony that once MobiFone’s 3G service is launched, not only 3G service users will benefit from the new services but also 2G users.
“Thanks to the 3G network, the 2G service quality at big cities will be improved greatly,” Vu Anh said.
The EVN Telecom – Hanoi Telecom is the most “mysterious” competitor. They didn’t reveal any information about their future 3G network. According to their licence, they will have to offer 3G services within 9 months since their licence takes effect.
The biggest problem for their cooperation in developing 3G is that EVN Telecom is using the CDMA technology while Hanoi Telecom is employing the GSM-technology.
