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Viettel proposes new tariff cuts

Update: July, 08/2014 - 09:02
Customers register to use mobile phone services at a Viettel branch in Ha Noi. — VNS Photo Truong Vi

HA NOI  (VNS) — Viettel yesterday asked the Information and Communications Ministry's (MIC) permission for applying the same tariffs on calls between the intra-network and inter-network in a bid to attract more subscribers.

According to the plan, Viettel want to cut the tariffs on calls made by Viettel subscribers to other networks by 21.6 per cent, to match the tariffs on calls within the Viettel network.

"We hope the new tariffs would help our subscribers to manage their bills more easily. Our revenue would be reduced in the beginning, but in the long term, we hope the lower tariffs would attract more subscribers to the network, and thus help our business grow," said Viettel's deputy general director Hoang Son.

Son said the tariff cut would also help it to cope with new trends in the mobile industry, which is focusing more on 3G Internet-based services, or OTT (over than counter) services, other than the normal call services.

"So, if we do not reduce the tariff for normal calls, we cannot attract subscribers to 3G," he added.

Meanwhile, director of MIC's telecom department Pham Hong Hai said that the ministry would ask Viettel to submit the details of the production costs of its telecom services. Based on that report, the ministry will decide on Viettel's request.

Viet Nam News is unable to give details of the current calling charges of Viettel due to the large number of its tariff packages. Readers can log on to for further details.

Last month, Vinaphone reduced the tariffs of its international roaming services for making calls back to Viet Nam from Australia, Canada and the United States.

The third-largest mobile network operator's tariffs for international roaming services fell from 55.46 per cent to 11 per cent. The international roaming charges for other services were also reduced.

According to the latest report from MIC, during the first six months of this year, the number of 2G subscribers fell by approximately five million, while the number of 3G subscribers increased by more than three million.

In the second half of this year, the ministry will continue making policies to manage and develop over-the-top (OTT) services, which allow mobile phone users to make free phone calls and send free messages via the Internet. It will also complete the legal processes for monitoring prepaid subscribers and mobile phone numbers.

While the Vietnamese telecommunications market has grown rapidly, it is still controlled by three large network providers, namely Viettel, Mobifone and Vinaphone, which had a total annual turnover of US$5.5 billion last year.

Viet Nam has around 20 million 3G subscribers among more than 130 million mobile phone users, according to MIC. — VNS

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