Việt Nam had three large local telecom firms, but promotions and discounts remained a major focus of these companies. — Photo itcnews.vn

HA NOI (Biz Hub) — Deputy Minister of Information and Communications Pham Hong Hai has said telecom companies should grow substantially, offering better quality and customer care services, instead of just promotions and discount campaigns.

Hai was speaking at a meeting on Thursday in Ha Noi, held to review the business performance of Vietnam Mobile Telecom Services (Mobifone) in the first six months. 

He said Viet Nam had three large local telecom firms, but promotions and discounts remained a major focus of these companies. This was unsustainable development. 

According to the Vietnam Telecommunications Authority, it is currently studying how to manage promotions more effectively by preventing large network providers from running rampant promotional campaigns. Some even offer promotions below their production costs, leading to unfair competition.

A policy to manage new promotions stipulates that if a telecom firm offers too many promotions against its revenue ratio, it will lead to problems affecting its business performance. Hai said network providers should maintain their market shares along with giving positive and sustainable competition, such as by offering quality services and customer care.

Too many promotion campaigns resulted in a large volume of new subscribers, while revenues did not rise, Hai said.

The information and communications ministry (MIC) has asked network providers to announce their 3G coverage areas, and has asked Mobifone to invest more in telecom infrastructure, Hai said.

The announcement of their 3G coverage areas is aimed at promoting healthy competition, just as other countries have done. Therefore, the ministry would soon consider applying it in Viet Nam, he said.

The number of newly built base transceiver station (BTS) is an important factor in assessing the ability of network providers in the time to come.

Investment in infrastructure development has become more important as the government has agreed to grant 4G licences by the end of the third quarter.

Le Nam Tra, CEO of Mobifone, said this was the first year Mobifone, the country's second-largest mobile services operator in terms of subscribers, piloted its 4G and MobiTV services on July 1 by depending on four pillars of cell phone, retail, television and multimedia services.

In the first six months, Mobifone earned VND17.4 trillion in revenue, bringing an after-tax profit of 2,336 billion. — VNS