Vinaphone, MobiFone Start Reducing Phone Charges from February

Vinaphone, MobiFone Start Reducing Phone Charges from February

The Vietnam Post & Telecoms Corp. (VNPT) has decided to reduce the phone charges of Vinaphone and MobiFone, the two largest cellphone networks in Vietnam, from February 1, 2005.

Accordingly, the charges of the post-paid mobile phone service will be reduced by 6 per cent from VND773 to VND727 for every 30 seconds. The account activation fee will be VND181,818.

The charges of the prepaid service will be cut down by between 5 per cent and 7 per cent to VND1,182 for every 30 seconds. The charge applicable for daily subscribers will be VND181 for every 30 seconds and the daily subscription will be VND1,818.

The charge of the international SMS (Short Message Service) will be reduced from US$0.25 to US$0.15 per message.

Vinaphone is operated by GPC Co., a subsidiary of VNPT. The network signed up 810,000 subscribers in 2004, raising its total number of subscribers to 2.51 million, including 800,000 postpaid subscribers. It now has 1,000 base transmission stations.

GPC secured total revenues of VND13 trillion (US$828 million) last year.

MobiFone is operated by VMS Co., a US$200-million business cooperation contract signed between VNPT and the Comvik International Vietnam Co. (CIV) under Sweden's Kinnevik Group in 1995.

The network signed up 850,000 subscribers in 2004, raising its total number of subscribers to 2.2 million.

Last year, VMS invested US$40 million in expanding the coverage of the network to all the corners of the country and improve its service quality. VMS plans to invest between US$80 and US$100 million this year to continue the expansion of its network and offer new services this year.