The race among Internet service providers in Vietnam
Sales promotion programs
launched by domestic Internet
service providers (ISPs) have
boomed recently with a series of
new services introduced. The race
to expand the market share of ISPs
has begun.
Competition with promotion.
The sales promotion program of the VCC Co. (NetNam) is probably the
most attractive. Exempting customers from a registration fee of VND165,000,
NetNam also offers a 12-month subscription fee, a bonus of VND20,000 and
VND40,000 for those clients who surpass the monthly Internet access
charges of VND50,000 and VND100,000 respectively. To open an Internet
account via NetNam, just stay at home and make a phone call or send an
e-mail to the office of NetNam in HCM City and you will be served. With such
attractive forms of promotion, NetNam has lured an additional 1,500
customers after entering HCM City for three months. The Saigon Internet
Center (SaigonNet) and the Financing and Promoting Technology Corp.
(FPT) continuously launch new promotion campaigns. In comparison with
NetNam's, sales promotion forms of SaigonNet and FPT are more diverse
with some options (offering Internet accounts, modems and Internet access
charges, registration fee exemption and subscription fee reduction) for
customers to choose.
It can be said that ISPs have launched as many promotion programs as
possible in 2000, three years after Vietnam officially hooked up to the
Internet, to join a bustling race for more market share. This is
understandable because three years are long enough for Vietnamese
people to get used to the Internet and confirm its benefits. The number of
Internet subscribers and public Internet service agents increases steadily,
thus ISPs should not miss such business opportunities.
So far, the VNN network of the Vietnam Data Communications Co. (VDC)
has held a larger share of the cake. Statistics indicate that there are now
some 91,000 Internet subscribers in Vietnam, 56,000 of which are VDC's
customers, accounting for 60%. VNN fees and charges are the highest
since there is no promotion program, but it allows high-speed access to the
Internet. The shorter the time requires to access to the Internet, the less
charges users have to pay. Thanks to modern equipment, VNN
transmission speed is 56kbps while it is only 33.6kbps at other ISPs. As a
result, the competition to expand market share among ISPs in the near
future will be not only in charges but also in equipment renovation to raise
the transmission speed. FPT and SaigonNet have plans to raise their
transmission speed to 56kbps by next year. Internet prepaid cards are also
being considered by ISPs.
Internet services for everyone. VDC takes the lead in the race to attract
more Internet service users. Targeting those who are interested in the
Internet but are on a tight budget, VDC is experimenting the "Access local
websites via VNN 1268" and "Access the Internet via VNN 1269" services.
Using these services, customers can access local websites and the
Internet without having to pay registration and subscription fees. VNN 1268
charges VND100/minute and VNN 1269 costs VND150-250/minute,
depending on the time of the day. The only shortcoming of these services is
that users are unable to use the e-mail service. These services are suitable
for students and researchers who cannot afford subscription fees. VDC is
also offering a hot-line (18001260) in 61 cities and provinces nationwide to
answer questions concerning Internet services. As in any other fields, a
current target of ISPs is to attract customers by after-sale services, including
the expansion of the network of agents and maintenance centers.
From the social view, the race among ISPs benefits Internet users. It is
expected that, with new and cheaper services, more and more people can
access the Internet. This raises the market share of ISPs. Nevertheless,
only 0.1% of Vietnamese population can access the Internet so far because
of the small number of personal computers, poor knowledge of information
technology, and particularly the current high access charges.
To popularize Internet services, along with the attempts of ISPs, there
should be a price change from the post and telecom sector. Appropriate
prices will encourage the public to make an approach to the Internet.
By Thuy Tien - The Saigon Times Weekly - December 16, 2000.
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