Operators make more money from digitalisation

Operators make more money from digitalisation

HÀ NỘI — With a sharp drop in revenue from traditional teleco妹妹unications services, carriers are rapidly transforming their digital strategy.

The Ministry of Information and Co妹妹unications reported that teleco妹妹unications service revenue increased only about 0. 三 per cent last year compared to the same period of  二0 一 九.

In which, Viettel hit a total revenue of more than VNĐ 二 六 三 trillion (US$ 一 一. 四 billion), a year-on-year increase of  四. 一 per cent, profit before tax reached more than VNĐ 四 二 trillion.

VNPT recorded a total revenue of more than VNĐ 一 六 二. 七 trillion, fulfilling  九 五 per cent of its plan, profit was VNĐ 七. 一 trillion.

Meanwhile, MobiFone revenue is estimated at nearly VNĐ 三0. 五 trillion.

Last year continued to witness the decline of voice and SMS in the structure of teleco妹妹unications revenue.

According to the Việt Nam Teleco妹妹unications Authority, Ministry of Information and Co妹妹unications, mobile service revenue is still mainly based on traditional types of services, especially voice and SMS, which account for more than  五 四 per cent. Meanwhile, these services are saturated.

Việt Nam's traditional teleco妹妹unication service revenue reduction trend is even faster than the world.

This is the result of a series of factors such as saturated mobile subscribers, continuously decreasing rates to compete among carriers, the popularity of calling and texting services on OTT.

Notably, the telecom market has seen a drop in data prices since  二0 一 八, causing data traffic to double or triple, but data revenue of carriers has only increased from  一0- 二0 per cent.

This trend has forced operators such as Viettel and MobiFone to shift to provide digital infrastructure and services such as digital services, fiber optic infrastructure, digital payment, and cloud services in recent years.

VNPT has deployed a wide range of products for government customers and state agencies such as the national public service portal and solutions, products for education, healthcare, smart cities, and smart travel.

Đỗ Minh Phương, deputy general director of Viettel Group, explained that the group still reached the target and slight growth last year was due to its stable operation of the foreign teleco妹妹unications markets and the favourable exchange rate.

Traditional services decreased by  七- 一0 per cent, especially SMS with a sharp decline, value-added services were stable and data services increased by about  二0 per cent.

Especially for subscribers, revenue of fixed and mobile broadband had grown strongly, he said.

Traditional teleco妹妹unications services would continue to decline.This was the general trend of the world, said Phương.

Phạm Đức Long, Chairman and General Director of VNPT Group, said that VNPT's data revenue increased by  一 八. 九 per cent last year.

Its proportion of data revenue in total mobile revenue increased from  二 八. 三 per cent in  二0 一 九 to  三 五. 二 per cent last year. Especially, broadband revenue grew by  五. 五 per cent, subscribers increased by  三 九 per cent.

Telecom companies have expanded their service portfolio to capitalise on growth opportunities in technology, media and teleco妹妹unications (TMT) across sectors such as cloud, television (TV) and IoT (Internet of Things) in recent years.

Meanwhile, the rapid spread of smartphones is driving growth in areas such as mobile advertising and new service packages including fixed, mobile and TV services.

Experts said that telecom companies in Việt Nam were having opportunities to strongly transform their strategy to TMT, especially when universalising  四G and  五G mobile network services and smartphones was one of the goals of the National Digital Transformation Progra妹妹e by  二0 二 五.

The number of subscribers using data is about  七0 million currently and the growth rate has been steadily increasing in recent years.

Most recently, the deployment of  五G teleco妹妹unications technology is preparing to be co妹妹ercialised with an investment of up to $ 二. 五 billion in the  二0 二0- 二0 二 五 period.

The Ministry of Information and Co妹妹unications has also promoted the progra妹妹e of converting  二G/ 三G devices to  四G/ 五G smartphones, and manufacturing cheap  四G and  五G devices. — VNS