Telecom market: Which opportunities for small players?

Vietnam mobile telecom market has witnessed the failure of small providers in 2012.

Illustration photo (Source: Internet)

It is the case of VimpelCom Group, who ran the Beeline mobile network in Vietnam.  Despite investing  half a billion dollars to build Beeline network in Vietnam, VimpelCom Group decided to sell all of its 49% stake in Gtel Mobile Joint Stock Company (Gtel Mobile) for USD 45 million. Gmobile- a new brand started the operation in mid September 2012 by providing its “Billionaire” promotional fee package. However, it is difficult to predict whether Gmobile can exist or not in the coming time when telecom market shares are dominated by three telecom giants Viettel, Mobifone and Vinaphone.

The telecom market has no longer attracted foreign investors. The market  has also witnessed S- Fone’s failure . S- Fone, crushed by debt, ended its CDMA services in Vietnam.

Also in 2012, Dong Duong telecom had its license to provide a mobile virtual network service revoked due to its sluggish implementation of services. Like Dong Duong Telecom, if Vietnam Multimedia Corp. (VTC) has not started its services within the prescribed time limit, it will be possible for its license revoked. There is therefore no opportunity for virtual network in Vietnam telecom market.