Steep mobile charge cuts loom
By Hien Nguyen - The Saigon Times Daily
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| Promoters introduce Vinaphone's 3G service. Mobile carriers are poised to slash charges when the rule on connection fee reduction takes effect - Photo: Thu Hien |
HCMC – Mobile carriers will cut mobile charges as soon as the regulation on connection fee reduction up to 30% goes into effect with industry insiders predicting a year of price wars.
Viettel, the vanguard in price slashing, announced to cut its mobile charges by 15%-20% in February. Under the d
ecision, external and internal calling charges will be decreased by an average of VND200 per minute. The lowest calling charge is VND790 per minute compared to the previous VND990 per minute.
Since 2007, Viettel has led all telecom providers in rate slashing with annual reductions from 10%-30%.
Tran Minh Huy, director of Viettel Telecom in HCMC, told the Daily on Thursday that Viettel had reduced mobile rates because the connection fee among mobile carriers had been cut by 30% since January 15.
According to Huy, other providers will cut mobile charges due to the new regulation. However, the new rates will depend on the market situation.
Ho Hong Son, CEO of S-Fone, the first CDMA network, said that S-Fone was considering adjusting service charges to ensure clients’ rights.
“When the connection fees are reduced as stipulated by the Ministry of Information and Communications, it will create a favorable condition for mobile providers to slash charges. This year will witness a mobile reduction race among providers and clients will enjoy more benefits,” Son said.
Vinaphone, MobiFone, EVN and Vietnamobile have yet to announce rate cuts but some of them launched promotions with attractive incentives.
Vinaphone offers a monthly charge package up to VND159,000 for free calls to other Vinaphone subscribers.
The Ministry of Information and Communications reported that in 2009 Vietnam had 130 million telephone subscribers, 85% of them mobile subscribers. The country has 22.47 million Internet users and 2.89 million broadband subscribers.