The Ministry of Information and Communication (MIC) has decided to adjust the charges of the calls that connect mobile phones and fixed line phones, in an effort to stop the decline of fixed line service subscribers. But, it is not sure if the decision can help.
The Ministry of Information and Communication (MIC) has decided to adjust the charges of the calls that connect mobile phones and fixed line phones, in an effort to stop the decline of fixed line service subscribers. But, it is not sure if the decision can help.
The charges for the calls from mobile phones to landline phones have been raised from 270 dong per minute to 415 dong per minute from October 1. The decision by MIC is believed to aim to “rescue” landline phones, since the number of landline phone subscribers has been decreasing dramatically.
Number of subscribers down
Vietnamese people nowadays tend to prefer mobile phone services to landline, especially because the mobile call charges have become cheaper and cheaper.
Analysts said that the charges of the calls from mobile phones to landline phones have dropped to the levels which are equal or even lower than the charges of the calls from fixed line phones to mobile phones. Especially, the convenience of mobile phone, once again, prompts people to use mobile phones instead of fixed lines.
As a result, the number of landline subscribers has been decreasing steadily. By the end of July, 2011, Vietnam had had 128 million phone subscribers. Of this amount, mobile networks had got 5.7 million new subscribers, while fixed line services had got 36,400 more subscribers.
In April 2011, telecom service providers witnessed the zero percent in the growth rate of\ fixed line subscribers. The number increased later in the next months, but the growth rate remains very low.
The situation seems to be dippersful if comparing the number of fixed line subscribers at the end of 2010 with the current figure. The total number of subscribers had reached 16.5 million by the end of 2010. However, the figure had dropped to 15.5 million by the end of July 2011, which represents the sharp fall of one million subscribers.
At the working session with the then Minister of Information and Communication Le Doan Hop several months ago, Nguyen Manh Hung, General Director of VNPT Hanoi (the Vietnam Post and Telecommunication Group) said that VNPT Hanoi loses 60,000 subscribers a year due to the rise of the mobile services.
The reductions of the numbers of fixed line subscribers have been occurring with all telecom service providers, but VNPT proves to be the biggest sufferer, because it holds 71 percent of the market share, had had 11.7 million of subscribers by the end of 2010.
Charges increases cannot settle problem to the every root
In 2008, MIC once consulted with telecom companies about the reduction of the charges of the calls from fixed line phones to mobile phones by 20.5 percent, from 535 dong per minute to 425 dong per minute. At that time, the idea was not applauded by some telecom companies. Later, the charges have been lowered to 415 dong per minute which has been applied since then.
Now, with the decision to raise the connection fee, the charges from both mobile phones and fixed line phones have become equal at 415 dong per minute. The enterprises, which provide fixed line services can enjoy benefits from the 53.7 percent connection fee increases.
It is VNPT, which has also got the biggest benefits from this, because it holds 71 percent of the market share.
However, experts believe that the decision should not be seen as the optimum solution which can help stop the falls of the number of subscribers and of course, cannot help develop the services.
In fact, there are more calls from fixed line subscribers to mobile subscribers than the calls from mobile phones to fixed line subscribers. Therefore, the benefits the fixed line service providers can enjoy from the latest decision is limited.
Analysts say the decision would only help service providers reduce the losses or increase the sources of revenue, but it will not have positive effects on the development of landline users.
The best scenario is that fixed line services need to live on the services themselves. Analysts say it is necessary to consider provide different services on the same fixed line in order to increase the revenue instead of relying on traditional communication services.
(Source: Lao Dong newspaper)
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Number of subscribers down
Vietnamese people nowadays tend to prefer mobile phone services to landline, especially because the mobile call charges have become cheaper and cheaper.
Analysts said that the charges of the calls from mobile phones to landline phones have dropped to the levels which are equal or even lower than the charges of the calls from fixed line phones to mobile phones. Especially, the convenience of mobile phone, once again, prompts people to use mobile phones instead of fixed lines.
As a result, the number of landline subscribers has been decreasing steadily. By the end of July, 2011, Vietnam had had 128 million phone subscribers. Of this amount, mobile networks had got 5.7 million new subscribers, while fixed line services had got 36,400 more subscribers.
In April 2011, telecom service providers witnessed the zero percent in the growth rate of\ fixed line subscribers. The number increased later in the next months, but the growth rate remains very low.
The situation seems to be dippersful if comparing the number of fixed line subscribers at the end of 2010 with the current figure. The total number of subscribers had reached 16.5 million by the end of 2010. However, the figure had dropped to 15.5 million by the end of July 2011, which represents the sharp fall of one million subscribers.
At the working session with the then Minister of Information and Communication Le Doan Hop several months ago, Nguyen Manh Hung, General Director of VNPT Hanoi (the Vietnam Post and Telecommunication Group) said that VNPT Hanoi loses 60,000 subscribers a year due to the rise of the mobile services.
The reductions of the numbers of fixed line subscribers have been occurring with all telecom service providers, but VNPT proves to be the biggest sufferer, because it holds 71 percent of the market share, had had 11.7 million of subscribers by the end of 2010.
Charges increases cannot settle problem to the every root
In 2008, MIC once consulted with telecom companies about the reduction of the charges of the calls from fixed line phones to mobile phones by 20.5 percent, from 535 dong per minute to 425 dong per minute. At that time, the idea was not applauded by some telecom companies. Later, the charges have been lowered to 415 dong per minute which has been applied since then.
Now, with the decision to raise the connection fee, the charges from both mobile phones and fixed line phones have become equal at 415 dong per minute. The enterprises, which provide fixed line services can enjoy benefits from the 53.7 percent connection fee increases.
It is VNPT, which has also got the biggest benefits from this, because it holds 71 percent of the market share.
However, experts believe that the decision should not be seen as the optimum solution which can help stop the falls of the number of subscribers and of course, cannot help develop the services.
In fact, there are more calls from fixed line subscribers to mobile subscribers than the calls from mobile phones to fixed line subscribers. Therefore, the benefits the fixed line service providers can enjoy from the latest decision is limited.
Analysts say the decision would only help service providers reduce the losses or increase the sources of revenue, but it will not have positive effects on the development of landline users.
The best scenario is that fixed line services need to live on the services themselves. Analysts say it is necessary to consider provide different services on the same fixed line in order to increase the revenue instead of relying on traditional communication services.
(Source: Lao Dong newspaper)
