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VN mobile carriers boost 3G in lieu of 4G launch

Vietnamese mobile carriers are improving their 3G service quality to attract more subscribers before 4G is allowed in the country, the Vietnam Investment Review (VIR) reported on September 8.
Vietnamese mobile carriers are improving their 3G service quality toattract more subscribers before 4G is allowed in the country, theVietnam Investment Review (VIR) reported on September 8.

Viettel,MobiFone, and VinaPhone recently announced that they have raised theirdownload speed six-fold to 42 Mbps, which will allow subscribers towatch HD video clips on their mobile phones.

The three carriershave increased the number of 3G base transceiver stations (BTS). Infact, MobiFone has reused its 900Mhz frequency for 3G transmission, thustripling the stations’ coverage. The telecom firm has just finishedupgrading 1,000 3G BTSs in Hanoi, Ho Chi Minh City, and Dong Nai to aspeed of 42 Mbps, and is planning to build another 1,000 42Mbps 3G BTSsin Da Nang and Can Tho.

Meanwhile, Viettel has finished a trialrun of its enhanced speed 3G, and plans to complete upgrading its BTSscountrywide in 2015.

VinaPhone assured its customers that its13,000 3G BTSs will be completely upgraded to 42 Mbps in early 2015. Inaddition, the leading carrier is co-operating with equipment suppliersto pilot 84 Mbps 3G.

The VIR quoted Jan Wassenius, GeneralDirector of Ericsson Vietnam, as saying that Vietnamese carriers had notyet fully tapped the potential of 3G. He added that “only when demandfor 3G is very high should we commercialise 4G LTE.”

Vietnamcurrently has 19.7 million 3G subscribers, up four million on year,while 2G and 3G subscribers combined total 127.8 million, down eightmillion.

The number of 3G subscribers accounts for only 16percent of the total number of mobile users in Vietnam, in comparison to75 percent in the US and 45 percent in China.

Thieu Phuong Nam,General Director of Qualcomm Vietnam, Cambodia, and Laos, said thatVietnam should design an appropriate business model for 4G beforerunning it. He suggested holding off on commercialising 4G LTE until2017-2018, giving time for the percentage of 3G subscribers to rise to50-60 percent, meaning about 40-50 million new 3G users.

Currently,revenue from 3G users, mostly from value added services, accounts forabout 50 to 60 percent of carriers’ total revenue.

According toGeneral Director of the Authority of Radio Frequency Management (ARFM)Doan Quang Hoan, the majority of investment in 3G does not come fromcarriers but from mobile users through end use devices. He added that ifmobile network operators invest in 4G LTE now it will be a waste, asthe number of users is low and people have not yet made full use of 3G.-VNA

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