Price war looms for mobile services Vietnam

28 Feb 2007
00:00

(Thai Press Reports via NewsEdge) Vietnam's VNPT announced that it will reduce by 15% to 20% its charges for VinaPhone and MobiFone, triggering a possible price war between the six mobile service providers in Vietnam.

The cuts are tentatively scheduled for the end of March and VNPT is also expected to offer a longer prepaid time and different fee packages. VNPT wants to increase its users by an additional 3.5million to 4 million this year, reaching 16 million subscribers.

The price cut comes after Viettel Mobile readjusted its fee for their post-paid customers beginning February 1. Under the new readjustment, Viettel will cut 50% of the monthly fee for customers who use 200,000 dong ($12) to 500,000 ($31) each month.

Customers who pay more than 800,000 dong ($50) per month won't need to pay a monthly fee and will receive a reduction of 30% on their calling charges. Viettel said it was ready for the competition because it now has 5 million subscribers, as many as VinaPhone and MobiFone.

The other three providers, including S-Fone, EVN Telecom and HT Mobile, say they are also prepared for a price war.

'Mobile service providers will have to offer fee cuts to keep their customers,' Nguyen Manh Bang, director of EVN Telecom Mobile, said. Currently EVN Telecom Mobile prices are lower than those of VinaPhone and MobiFone, which are expected to fall during the coming competition.

'In the very short future, all mobile service providers will have to adjust their charges. We are ready for this,' Pham Van Man, director of S-Fone in Hanoi, added. HT Mobile, newest entry in Vietnam's mobile phone sector, meanwhile said it will compete with bigger companies by offering a different fee package, and a value-added service along with CDMA technology with attractive price.

© 2007 Thai Press Reports

© 2007 Dialog, a Thomson business. All rights reserved

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