VNPT Dominates Internet Service Market in Vietnam

Vietnam Post and Telecommunications Group (VNPT) continues dominating the market for internet service providers, serving over 75% of subscribers, followed by the military-run Viettel and FPT Telecom.

 

The VNPT had over 2.5 million ADSL users by the end of 2009, compared to 530,000 users of Viettel and 440,000 users of FPT Telecom.

 

Early this year, FPT Telecom set a goal to hold 30% of the market share, while Viettel expected to maintain the second position in the market.

 

However, these companies complain that they are losing subscribers as many users now prefer accessing the internet using mobile broadband and 3G services to through ADSL services.

 

The number of VNPT’s existing subscribers falls by 13%-15%/year, while FPT Telecom’s General Director Chu Thanh Ha said up to 20% of its ADSL subscribers have changed their services several times.

 

Viettel’s Deputy Director Le Huu Hien admitted the market’s growth has been rather disappointing. As a result, the company is now investing more in the mobile broadband market than in ADSL development, as heavy investment in ADSL infrastructure can not be recouped by new subscription.

 

Analysts forecast broadband mobile services will grow strongly to replace ADSL-based internet services from 2011 due to the strong development of 3G and Wimax technology, and even 4G in coming years.

 

The Ministry of Information and Communications has licensed more than 40 internet service providers but it has recently revoked some licenses due to a lack of progress in service development. (Vietnamplus)