Network operators’ revenues down in first quarter
Updated : Monday, April 09, 2018 3:09 PM (GMT+0700)

Therevenue of Vietnamese network operators has suffered an uncharacteristic low inthe first quarter of this year due to new legislation reducing top-uppromotions for pre-paid subscribers from 50 percent to 20 percent. Thereduction of the promotion was put into force last month.

 
MobiFone Corporation reported a year-on-year increase of 6.3 per cent in revenue in the
first quarter of the year – Photo: MobiFone

The country’s three biggestnetwork operators reported their business results for the first quarter at ameeting held by the Ministry of Information and Communications last week.

The Vietnam Posts andTelecommunications Group (VNPT) said that its business plan for the first threemonths of the year has many changes from previous years.

The group has alteredpromotions for its mobile services. Whereas before subscribers could claim back50 percent of their top up in the first three months of the year, that numberis now just 20 percent. As a result subscribers are topping up with lessenthusiasm than in previous years and VNPT’s mobile revenue is consequentlydown from the same period last year.

According to a VNPTrepresentative, the decrease in revenue may be due to the fact that in themonth leading up to the change in policy, top-up cards were sold in largenumbers so that subscribers could take advantage of the 50 percent promotionbefore the new regulation on promotions took effect.

As a result, many customersmay have purchased several top up cards to save for later, causing a delay inrevenue, rather than a dip, a representative of VNPT said.

The group’s consolidatedrevenues were equivalent to the same period last year, reaching 24 percent ofthe year’s plan, while its profit increased 5.6 percent, reaching 21.5 percentof the plan.

Meanwhile, the military-runtelecom group, Viettel, reported that it had achieved 23.4 percent of the wholeyear’s revenue plan in the first quarter.

A representative of Viettelsaid that the current trend in the world of telecom is 3G and 4G data.Applications such as WhatsApp and Zalo are running off of data.

In Vietnam, the price ofvoice and SMS services is down, but the management of 3G and 4G data isnot tight enough, as a result there are some data packages “dumping" themarket.

The Viettel representativesaid that operators should reduce the cost of their voice and SMS services,while increasing the cost of data packages in order to keep up with futuretrends.

Meanwhile, the MobiFoneCorporation reported a year-on-year increase of 6.3 percent in revenue in thefirst quarter of the year.

However, like other mobileoperators, MobiFone’s voicing and texting revenues reduced. The corporation’sprofit in the first quarter reached 22 percent of the whole year’s plan.

Source:VNA

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