That Viet Nam has many free Wi-Fi spots and a cheap 3G tariff plan creates conditions for OTT to develop. — Photo dantri.com.vn

HA NOI (Biz Hub) — Viet Nam has "too much" free wireless internet service (Wi-Fi) and it is also one of the countries with the lowest 3G tariff in the world, said Nguyen Thanh Hung, deputy minister of Information and Communications, on August 11.

Such penetration of high-end telecom services resulted in a loss for traditional services and made enterprises less competitive, Hung said, adding that it could also lead to a monopoly situation, thus affecting customers.

The problem came up for discussion at a working session between the National Assembly Standing Committee's supervisory delegation on economic integration and the Ministry of Information and Communications.

The meeting was aimed to review the results of the country's international economic integration since joining the World Trade Organisation (WTO).

Talking about challenges to the country's economic development after joining the WTO and the Trans-Pacific Partnership (TPP) negotiations, Viet Nam is required to open markets for over-the-top (OTT) service.

OTT services have caused losses to telecom providers because it allows users, whose devices have internet-connection, to send SMS's or make free calls.

That Viet Nam has many free Wi-Fi spots and a cheap 3G tariff plan creates conditions for OTT to develop.

OTT is a new technology challenging mobile providers but it is a trend that will take over inevitably, the deputy minister said.

The 3G lump-sum price of MobiFone, Viettel and VinaPhone was at  VND70,000 per month (US$3.17) on an average with 600MB high-speed download capacity.

Beyond a certain limit, the internet access speed will be lowered to average level.

The increase in 3G fee might elicit a strong response from subscribers since the country has levied lower tariffs for a long time. However, if no changes are made in the long term, over-competition will exhaust the enterprises. —  VNS