3G or ADSL: Prudential Choice Needed

 

The presence of 3G wireless technology is exerting a pull on many consumers and creating a money-spinning realm for many companies. Although mobile network operators are providing dozens of 3G value-added services, consumers are primarily interested in Mobile Internet (USB 3G). A representative from VinaPhone, the third largest mobile service network by users in Vietnam, said, a vast majority of 7 million 3G subscribers are using Mobile Internet service. Similarly, Mobifone, the second largest mobile service network by users, reported that up to 90 percent of its 3G subscribers are using Mobile Internet service. It seems that low service charge and expediency, 3G-based wireless Internet access is threatening the traditional ADSL Internet service.

 

An user simply needs an USB integrated a 3G SIM card to access the Internet, listen online users, read online newspapers and a slew of other utilities anywhere with 3G service coverage. Many people in big cities like Hanoi and Ho Chi Minh City have very difficult access to the Internet because they are residing unfavourable locations for ADSL infrastructure installations. Meanwhile, a 3G USB can solve infrastructural difficulties because it has a broad 3G service coverage and particularly its mobility. Currently, according to large mobile network operators, the 3G coverage has been stretched out almost 90 percent of Vietnam. Thus, with a small 3G USB, users can access to the Internet very easily.

 

Besides, prices of 3G devices are around breakeven rates. For instance, a 3G USB D-com with connection speed of 7.2 Mbps is sold at between VNDVND 500,000 and VND 800,000. With this speed, a real download speed may reach 2Mpbs if the device uses downloader software like Internet Download Manager or FlashGet. Pham Ngoc Tu, Deputy Sales Manager of Vinaphone - the first 3G mobile service provider in Vietnam, said 3G Internet speed in optimal environment is around 14 Mbps and the actual speed is 3 Mbps. Using 3G services is now not expensive. Vinaphone’s lowest package costs only VND30,000 a month (for 35 Mb of data).

 

Pertaining to connection speed, 3G USB internet service provided by Mobifone, Vinaphone and Viettel has connection speed of 1- 2 Mbps all over the country. This is the speediest wireless as well as ADSL broadband access in Vietnam to date. In fact, in case the two networks have the same data access speed, wireless technology is usually chosen as it is more flexible to use and lightweight. With many advantages, all types of Internet connections are looking to 3G technology and this market will boom as ADSL broadband used to. According to data from mobile network operators, Vietnam now has about 14 million 3G subscribers, with VinaPhone holding the top spot with over 7 million users, followed by MobiFone with 6 million users and Viettel with 1 million users.

 

These advantages of 3G USB have challenged and threatened the top spot of ADSL. From the angle of economics, according to many experts, ADSL is at the stage of saturation. Thus, it is very difficult to create innovative services and speed because this technology is at its peak. Actually, after five years of peak development, ADSL has exposed many shortcomings like Data loss caused by transmission line problems and slow data transmission. Besides, when it is rainy or stormy, ADSL users cannot do anything because of transmission line faults, DSLAM power outrages, etc.

 

Anyway, each technology has its own strength. 3G data access service has more competitive advantages over ADSL. However, ADSL still has a lot of potentials for development and has unique strengths and superiorities. At present, 3G service is very good for certain groups of people, especially mobile ones, but is unsuitable for customers using advanced applications like enterprises. Hence, these groups of users still choose fixed broadband to build virtual private networks and host videoconferences with fast and stable quality. Particularly, for security-conscious companies and organisations, ADSL broadband is still the best choice.

 

To compete with 3G services, many mobile network operators are cutting service charges while doubling transmission speed. Viettel’s HomeN, HomeE and HomeC packages double the transmission speed while keeping the service charge unchanged: The flat charge for HomeN package is VND230,000 a month; HomeE , VND300,000; and HomeC, VND400,000. From June 1, 2010, VNP Group-affiliated MegaVNN packages are kept unchanged from VND150,000 to VND1.4 million a month but the connection speed was doubled. For instance, the download speed of Mega Basic package was raised from 512 Kbps to 1 Mbps or Mega Easy package from 1.5 Mbps to 3Mbps.

 

Vu Hoang Lien, Director of VDC - the provider of MegaVNN ADSL internet services, the transmission speed on ADSL infrastructure may reach many Gbps while the speed on 3G network is just some Mbps. Besides, the stability of 3G is not as good as ADSL. With only an ADSL line, many uses can share the infrastructure with relatively good quality while the quality of 3G services significantly drops if the device is shared.

Indeed, each technology has its own strengths and weaknesses. If 3G USB has low service rates, maximum connection speed and mobility, ADSL has high advantages of security and stability. Currently, the race between 3G and ADSL is speeding up but neither has claimed victory. Depending on their demands, users can choose services suitable to their work and life to boost utilities and reduce service charges.