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Vietnamese telecom firms to develop their own digital content

Image credit: Ministry of Information and Communications

Telecommunications firms are turning towards developing their own digital content, the Vietnam Telecommunications Authority (VNTA) has said.

The VTNA is under the Ministry of Information and Communications (MIC). According to a press release, mobile service revenue is mainly based on traditional telecommunication services, with revenue from voice calls and SMS messages accounting for 76.6%.

With tightened management over pre-activated SIM cards, the number of mobile phone subscriptions was 125.8 million last year, a year-on-year decrease of 3.5%.

However, the number of broadband subscribers has increased significantly, with mobile broadband (3G and 4G) having 61.3 million subscriptions, accounting for 48.7% of the total number of mobile subscriptions.

The total market share of the three largest enterprises, Vinaphone, MobiFone, and Viettel, accounted for more than 96.2% last year, said VNTA.

Commenting on the telecommunications market, Huynh Quang Liem, the Deputy General Director of Vinaphone’s VNPT said traditional telecommunications services were declining.

Specifically, the use of voice call services decreased by 18% last year, while data service use tripled.

The Deputy Minister of Information and Communications, Pham Hong Hai, said global trends would affect the country’s telecommunications market such as the impact of the internet of things (IoT) and cross-border services.

Facing this situation, Vietnamese telecommunication enterprises have shifted to developing digital services.

For example, last year VNPT launched its digital transformation efforts with the ‘VNPT 4.0’ strategy.

Its digital services grew strongly, as the fintech service with the VNPT Pay application achieved 60 times an increase in cash flow.

Along with that, VNPT made a breakthrough in infrastructure investment for mobile networks, fixed broadband, information technology services and digital services.

Meanwhile, MobiFone has also digitised a lot of internal operations such as e-office, ERP (enterprise resource planning) software and infrastructure.

MobiFone said it would use modern technologies to automate its entire infrastructure as well as customer transaction points.

The country’s digital infrastructure and services have developed strongly since last year, said VNTA.

Revenue from data increased to about 30% of total service revenue.

The cloud market has a turnover of about US $220 million with a growth rate of 40% per year.

The internet economy is estimated to have a size of US $12 billion with a growth rate of 38% annually.

To prepare the infrastructure for the digital economy and digital society, and deploy national digital transformation, telecommunications businesses are focusing on promoting the development of important digital infrastructure this year.

The first step is building a cloud application programme for e-government.

For IoT infrastructure, companies are required to promote the deployment of IoT services on the national mobile telecommunications network to set a foundation for the development of smart agriculture, smart transport, and smart cities.

Regarding e-financial infrastructure, VNTA will promote comprehensive finance and non-cash payment by guiding three telecommunications businesses to pilot mobile money services.

The Deputy Minister said the MIC would study and propose appropriate management methods to promote the sustainable development of the telecommunications market.

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