3G race proves to be more violent than 2G

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VietnamNet English - 31 month(s) ago 13 readings

3G race proves to be more violent than 2G

VietnamNet Bridge – The stiff competition among telcos in providing 2G services has led to the sharp falls of the mobile phone charges by two or three times. However, the 3G race proves to be even more violent than the 2G race.




Previously, 3G was considered a luxurious service because of the high service fee. However, the outlook has become outmoded. As 3G service providers are rushing to slash the service fees to attract users, the service has become more popular.

No one could imagine that one day, the fees of the 3G data transmission service would be much lower than 2G. However, the paradox has happened, which has been explained by a simple principle that the next generation technology always has faster speed and more convenient, therefore, it must be cheaper.

MobiFone is considered the service provider who triggered the race. In October 2011, MobiFone launched into the market Mobile Internet package with no limit (MIU). Users have to pay 60,000 dong a month at maximum, just equal to a half of the GPRS with slower speed.

After that, other service providers have also marketed similar packages. In order to compete with them, MobiFone slashed the fee further to 40,000 dong a month. Not only reducing the charges, MobiFone has also increased the free data capacity applied to different service packages, including M50 package (from 350 Mb to 550 Mb), M70 (from 600 Mb to 800 Mb), M100 (from 1Gb to 1.2 Gb). D30 (1.5 Gb to 1.7 Gb).

With the 3G package with no limits, Mobile Internet users can have the maximum speed of 7.2 Mbps within the first 400 Mb of use. If the used amount exceeds the level, users would not have to pay additional money, but the speed would be lower.

A representative of MobiFone said that when surveying the demand for Mobile Internet with 3G on mobile phones, the network operator found out that most of the clients spend less than 50,000 dong a month for data. Therefore, MobiFone has decided to offer the lower package with the fee of 40,000 dong at maximum.

Meanwhile, an executive of VinaPhone emphasized that the race of 3G service providers to slash charges would help make the services more popular and affordable by many more people.

The fact that MobiFone launched Mobile Internet with no limits really made a breakthrough in the 3G service market. The reasonable fee of 40,000 dong a month and the higher data capacity both have heated up the market.

The low cost service package has been welcomed warmly, especially by teenagers, who always try to get adapted to the new technologies and new products. Low cost smart phones and low service fees both have made high speed Internet always ready for users.

Experts have predicted that after slashing fees for the most popular 3G services, such as USB 3G and Mobile Internet, mobile network operators may consider easing the fees for other 3G services soon.

Buu dien Vietnam newspaper has cited a survey by Yahoo Group as reporting that MobiFone, the pioneer in the developing 3G services, is now Number 1 in the mobile Internet market in Vietnam, holding 60 percent of the market share.

The second and the third rankings belong to Viettel with 26 percent of the market share, and VinaPhone with 11 percent.

Source: Lao dong, Buu Dien

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