VietNamNet Bridge – EVN Telecom is quickly building facilities to launch 3G services by June 6, 2010 to avoid being fined for violating its 3G commitment by the Ministry of Information and Communications (MoIC).

Mobile providers’ 3G war continues, customers win

This firm deposited a billion dong to obtain a licence to develop a 3G network. If it doesn’t supply 3G services as of June 2010, it will lose its deposit. EVN Telecom officials reported that they expect to launch their 3G network in mid-June.

Three other 3G networks have been launched already by Viettel, MobiFone and VinaPhone, using 2G facilities to support their 3G networks. EVN Telecom, in contrast, hoped to build a separate 3G network, which would be more costly, but would provide better service quality. Viettel, MobiFone and VinaPhone customers have complained that the quality of 2G services were affected by 3G and the companies worked hard to fix the problems.

To use EVN Telecom’s 3G services, clients must buy 3G SIM cards, but current 2G subscribers can keep their phone numbers when switching to 3G.

EVN has invested around 2 trillion dong (over $100 million) to build about 2500 3G base transceiver stations (BTS). In the second phase of the EVN plan, it will install an additional 5000 BTS.

Vietnamobile, which shares the 3G licence with EVN Telecom, is negotiating with foreign partners to buy additional 3G equipment. Many doubt that they will be able to launch 3G services in time.

“Our 2G network is not fully used, so it is costly to build a 3G network. We must design suitable policies for 3G and only join the 3G race if we can win,” commented a Vietnamobile official.

Some warn that 3G is a trap. VinaPhone, MobiFone and Viettel have invested hundreds of millions of dollars in 3G networks, but earnings are not high. After eight months, VinaPhone has around 8 million users, MobiFone has 6 million and Viettel has 1 million. Without appropriate policies, EVN Telecom and Vietnamobile will find it difficult to compete.

EVN Telecom’s mobile market share is also low and the company is known more for their E-com wireless fixed phone service.

Vietnamobile has lost tens of millions of dollars to switch its mobile technology from CDMA to GSM. However, by late April 2010, the firm reported over 4 million users (out of over 130 million mobile subscribers) in Vietnam.

PV