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Management agencies have been granting 4G licenses sooner than initially expected, which could create stiff competition among telcos in 2017.
Since last October, the Ministry of Information and Communication (MIC) has granted licenses to provide 4G services to the three biggest telcos – Viettel, VNPT and MobiFone.
4G is fourth generation technology for mobile data transmission which allows transmission at the speed of 1-1.5 gigabits per second at maximum, several hundred times higher than the speed of 3G.
MIC initially stated that the first licenses would be granted only in 2017. However, mobile network operators all proposed to grant licenses sooner than planned, because 4G is considered an ‘important battle’ to improve the business performance in the context of the voice and text market saturation.
Nguyen Manh Hung, CEO of Viettel, said that it was very difficult to attract new subscribers.
A report showed that the total number of mobile subscribers is now half as many against the total population. In 2016, mobile network operators successfully lured many more subscribers when launching a new number repository with ‘lucky’ prefixes 088, 089 and 086. But this is not a long-term business strategy for them to improve business.
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