Military-run telecom group Viettel posted revenue of VND144 trillion (US$6.4 billion) and pre-tax profit of some VND25 trillion in the first eight months of the year. — Photo baodautu.vn

HA NOI (Biz Hub) — Military-run telecom group Viettel posted revenue of VND144 trillion (US$6.4 billion) and pre-tax profit of some VND25 trillion in the first eight months of the year.

Viettel's deputy general director Hoang Son stated this at the meeting with the Ministry of Information and Communication held in Ha Noi on Tuesday.

Pre-tax profit was 3.7 times higher than combined total of Viet Nam Post and Telecommunication Group (VNPT) and MobiFone Telecommunications Corporation (MobiFone). 

Accordingly, VNPT's revenue was VND83 trillion for the eight-month period, meeting 63 per cent of its whole year's target.

VNPT Chairman Tran Manh Hung said profit in the period totalled 66 per cent of the whole year's target at VND2.8 trillion. 

MobiFone reported revenue of VND3.88 trillion and contributed VND3.7 trillion to the state budget.

The telecom providers also asked the ministry to remove regulations on floor prices of international calls to Viet Nam to avoid reducing revenue due to competition from over-the-top content (OTT) services, such as Skype, Viber and Zalo. 

Bui Son Nam, MobiFone's deputy general director, said the number of international calls to Viet Nam in August saw a sharp decrease of 15 per cent from the previous month as users preferred making free calls using the OTT service.

He added that foreign partners had complained about the management of floor prices of international calls to Viet Nam. 

Hung also suggested that the ministry review the regulation on prices, which was promulgated in 2014, as it was not suited to the current reality.

The ministry should consider whether to manage the prices itself or allow telecom providers to decide the prices, he added. 

Deputy Minister Nguyen Thanh Hung said foreign partners had also complained on the floor price management policy when Viet Nam participated in negotiations on the Trans-Pacific Partnership (TPP).

The trend in telecom services has witnessed rapid changes, requiring both businesses and management agencies to adapt accordingly. The suggestions on floor prices of international calls to Viet Nam should be strictly considered, Hung said. – VNS