Viettel dominates local telecom market

Its total revenue surpasses that of the Vietnam Posts and Telecommunications Group (VNPT), topping US$2.08 billion, and its total number of subscribers exceeds that of VNPT. 

VNPT's revenue in 2013 is estimated to reach US$5.66 billion, and its profits are projected to reach US$438 million. 

It is estimated to contribute VND7.9 trillion to the State budget. The number of subscribers who left VNPT's network is higher than that of its new subscribers, with 500,000 fixed-line subscribers and 10.8 million mobile phone users leaving the network. 

Meanwhile, the Hanoi Telecom JSC is expected to earn a revenue of VND8.4 trillion and contribute VND159 billion to the state budget in 2013. The total number of its Vietnamobile subscribers reached 10 million this year. 

Le Dang Dung, deputy general director of Viettel, recently told the Saigon Times Daily that Viettel is trying to tap three new markets every year, targeting to make overseas revenue account for 20-30% of total revenue of the group in 2020. 

Viettel does not only aim at markets with small numbers of mobile service users. In Peru, the ratio of mobile phone subscribers over the population has almost reached 100%. However, Viettel still invests in the nation due to a potential third generation (3G) service market, Dung added. 

The official further said Viettel also has opportunities to invest in three other countries in Africa and Latin America, but he declined to disclose the names of such countries. 

In the country, Viettel has to reach five million subscribers to secure profitability while in overseas markets, it only has to reach around two million subscribers to break even. The reason is the enterprise spends less on network infrastructures in other countries, he said. 

Viettel has 14.75 million international subscribers, of which nearly 3.09 million were added this year. 

Having got licences in seven foreign markets, Viettel is seeking investment opportunities in Tanzania and Myanmar in a bid to raise overseas incomes, according to the Saigon Times Daily 

If the enterprise wins a business license in Tanzania, Viettel will raise the total number of its foreign markets to eight, the other seven being Timor Leste, Peru, Cameroon, Mozambique, Cambodia, Laos and Haiti. 

Up to now, Viettel has officially provided services in five out of seven foreign markets. The enterprise will start its business in Cameroon in mid-2014 and is going to launch it mobile network in Peru.