VietNamNet Bridge - The telecom market is unlikely to sustain
its scorching pace of development since it has reached saturation point and
tariffs have fallen significantly.

Viet Nam
has a population of 86 million and 163 million subscribers, including 148
million for mobile phones.

“The telecommunication market has reached saturation
and … has come under strict oversight with regard to quality and tariffs,”
Deputy Minister of Information and Telecommunications Tran Duc Lai said.

“It is time for service providers to focus on quality
and diversification of services.”

He predicted 2011 to be a year for improvement in quality
and a boom in broadband services.

This year most telecom firms have achieved growth of at
least 20 per cent and introduced many new services like 3G, internet TV,
high-definition television, and 3D television on trial.

The industry’s revenues are expected to top US$6 billion,
double the 2007 amount.

But next year will be hard for companies that lack muscle
since saturation has also ushered in increased competitiveness and changes. FPT
bought a stake in EVN, South
Korea’s SK withdrew from S-Fone, CityPhone
folded up, while VTC and Dong Duong Telecom could not provide their “full
mobile virtual network operator” service as planned.

Source: VNS