Mobile Phone Service Providers with Struggle in Call Charges

Since the beginning of 2006, the mobile phone service market has continued to decline. Service providers are competing in promotion programmes to lure new clients.

 

The race entered a new stage as S-Fone introduced unprecedented their Forever service, which allows subscribers to make phone calls and listen to received calls without expiration.

 

In early March, VinaPhone and MobiFone, at the same time, launched the sales promotional programmes for its clients from March 1 to 31. New prepaid subscribers will have their account doubled when they join the networks. Second to none, Viettel Mobile introduced its largest-ever Lucky 6 Numbers from March 26 to May 26.

 

In fact, the sales promotion programme is another way to reduce fees for the users. However, this kind of discount exists in a certain period of time while subscribers always want long and continuous tariff cuts.

 

In 2006, the Ministry of Posts and Telecommunication also has plans to allow service providers to continue call charge cuts. According to the Governmental Decision 217/2003/QD-TTg, the Ministry of Posts and Telecommunication will only manage charges of enterprises with a lion’s share of the market while it won’t interference with call charges of small enterprises.

 

At present, VNPT is submitting a plan to cut call charges for its VinaPhone and MobiFone networks to the Ministry of Posts and Telecommunication for approval. Accordingly, from May 1, 2006, VNPT wants to reduce the call tariff for non prepaid subscribers to VND1,200-1,500/minute and the joining network will be halved to VND100,000. In addition, VNPT also asks for applying the six-block tariff calculation basis or letting it decide the call charge.

Previously, Viettel’s promotion programme, which allowed its users to make a free unlimited phone call each day, used to lead to network congestion because its infrastructure could not support the large volume of calls generated at the same time. Then, Viettel Mobile had to apologise its customers for the bad quality service. S-Fone also failed in expanding its subscriber population as it only paid attention to promotional programmes, not developing network and coverage. Hanoi Telecom had a certain period of time before launching the service but is still finding it hard to set up its position. EVN Telecom, the sixth mobile phone service provider in Vietnam, is aiming at ambitious targets but hardships are waiting for it ahead.

 

According to telecom experts, the competitive sales promotional programmes and tariff cuts will help enterprises keep their subscribers, who tend to move to networks with better quality and lower tariffs. Experts said subscribers will rarely quit their networks in the six months after they join. Hence, the service quality is the most important thing service providers should focus on to keep their clients.