The network infrastructure of Vietnam's largest mobile operators, MobiFone and VinaPhone, is set to be expanded this year under an ambitious plan by the Vietnam Posts and Telecommunications Group in preparation for an expected increase in competition.
The VNPT group has released its plan to triple the existing number of base transceiver stations [BTS] with an additional 6,000 stations to be split between the two networks this year, bringing the number of stations to around 9,000.
"The group will improve its investment procedures, releasing control to its affiliates in investment for infrastructure development," said VNPT president Vu Tuan Hung.
The country's largest mobile operator, VinaPhone, aims to raise its nationwide coverage ratio in both rural and urban areas where communication wave coverage is weakening.
VinaPhone plans to funnel US$100 million towards installing around 3,000 BTS, more than 160 percent increase over the total number established by 2006, following 10 years of infrastructure development.
The network aims to sign up 2.5 million new subscribers in a bid to increase revenue this year. Last year VinaPhone attracted 1.7 million new subscribers, raising its total number to 5.3 million.
Hoang Trung Hai, director of Vietnam Telecom Services Company, VinaPhone operator, said the company would have contribution resources from VNPT's post offices in 64 cities and provinces participating in station installation.
"Staff working at the local post offices will participate into the installation to share burden with VinaPhone," Hai said.
Of which, VinaPhone will have to finish installation of 1,500 BTSs in June this year. "The mobile market has turned into the fiercest competition period with six operating mobile service providers and each of them have to prepare for that," said Hai.
"The group is determined to expand the VinaPhone network, facilitating investment procedures in station installation preparation," said Hai.
VNPT is making up ground following last year's delays in investment due to procedural woes in investment tender, resulting in the two largest mobile operators lagging behind the country's third largest mobile operator, Viettel Mobile, in terms of network expansion, which upped its total number to 3,000 stations late last year.
The VinaPhone network has 69 base station controllers (BSC), 1,842 base transceiver stations (BTS) including 20 new BSC and 635 new BTS installed in 2006. MobiFone has only 45 BSC and 1,613 BTS, an increase of eight BSC and 290 BTS.
VinaPhone's Mobile Switching Centre has a capacity of 7.4 million subscribers and its short message service centre has a capacity of 5.3 million messages per hour.
Competition among mobile operators has become fiercer with the recent entry of Hanoi Telecom into the market in January. Meanwhile, foreign investors are entering the mobile sector by purchasing shares or starting strategic partners with domestic mobile operators. With the support from the foreign strategic partner, a mobile operator will have more power to compete with the others.
Mobile service revenue accounted for 47.2 percent of the group's 2006 figures. Mobile traffic reached 10.7 billion minutes, a 24.5 percent year-on-year increase against 2005. Of which, mobile outgoing traffic was around 5.7 billion minutes, an increase of 26.3 percent against the previous year.
VinaPhone will also provide in the first quarter of this year services based on EDGE."
Posted to the site on 19th March 2007
Posted to: www.cellular-news.com/story/22650.php