Viettel seeks to cut off-net rates

Dylan Bushell-Embling
09 Oct 2014
00:00

Vietnamese state-owned mobile operator Viettel is seeking permission to charge the same rates for intra-network and inter-network calls.

The operator has asked the communications ministry to be allowed to reduce its off-net rates by 21.6% to match the rates charged for on-net calls, VietNamNet Bridgereported.

The report states a Viettel executive as saying that the discount would reduce the proportion of total revenue the operator makes from interconnect revenues from the current 7% by “an extra 1.5%.”

But the operator is hopeful that the discount would attract more subscribers to the network, helping the company be more profitable in the long term.

The proposed cut is also motivated by industry trends including the focus shifting to data and OTT services rather than standard call revenue.

The ministry has asked Viettel to submit details of the operating costs of its telecom services, and will make the decision whether to allow the discounts based on the data.

Viettel rivals Vinaphone and MobiFone have yet to respond to Viettel's request, the report states.

Viettel is Vietnam's largest mobile operator by subscribers.

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