First provider to lower telecom charges
In the late 1990s, mobile services in Vietnam were luxurious and not affordable for everyone. Each cellphone with a SIM card was sold for about half of the price of a motorbike. Even foreigners coming to Vietnam at that time had to agree that the mobile charges in Vietnam were very high, affecting the development of the country.
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Viettel is the first company to pilot 5G services in Vietnam |
Things started to change when in 1998 the Ministry of Post and Telecommunications (now the Ministry of Information and Communications) licensed Viettel to offer all telecommunications services. The license signed with doubts then, as Viettel was a newly-born business. The success of Viettel at that time rested on the completion of the installation of optical cable 1A, which allowed the reception and transmission of signals via one single optical thread.
In 2000, Viettel debuted its 178 code for VoIP services, marking a vigorous phase of development in the telecommunications sector of Vietnam. From a costly service, long-distance calls saw its rate plunge. On October 15, 2004, Viettel officially opened its mobile phone network. The number of Viettel subscribers increased sharply, reaching one million after just one year – the figure that could only be reached in 10 years for other service providers during that period. The birth of Viettel Mobile with its low charges ushered Vietnam’s telecommunications sector into a blooming era.
The income from Viettel’s mobile phone service then doubled each year, helping Viettel become the top mobile service provider in Vietnam by 2010 in terms of income, number of subscribers, and market share. Viettel was always the first to offer 2G, 3G, and 4G services. Recently, it was also the first company to pilot 5G services in Vietnam. At present, Viettel serves more than 70 million mobile subscribers in Vietnam and operates in 10 foreign countries on three continents.
From top of Vietnam to world-class company
In 2006, Viettel started its plan to reach out to the world, aiming first at investing in Laos and Cambodia. In 2009, Metfone made its debut in Cambodia. For the first time in history, Vietnam had had a telecom company working overseas. It was also in that year that Viettel became the top telecom company in Vietnam in terms of profit and number of subscribers.
From 2009 to 2018, Viettel continued to expand its reach from Asia to Africa and Latin America. Ten affiliate companies of Viettel came into being and operate in three continents, of which five are holding the top position in terms of market share, income, and profit in Cambodia, Laos, Burundi, Timor Leste, and Mozambique. Now Vietnam not only receives foreign investment, but also invests overseas via capable companies like Viettel.
At present, Viettel is one of the biggest telecom companies in the world in terms of the number of subscribers.
New mission of Viettel
The fourth Industrial Revolution has opened up opportunities for Vietnam to start the race equally with other countries. Viettel has quickly moved forward with the research and development (R&D) of devices operating on new technology platforms. At the same time, Viettel has kicked off its digital transferring and aims at building a digital society in Vietnam. It has virtualized its core network devices and implemented network controlling technologies via software on the basis of new platforms like BigData, AI, VR, and more.
In terms of R&D, Viettel is resolved to produce hi-tech equipment by itself. The leadership of the group has determined clearly that Viettel has to develop made-in-Vietnam products, not just those developed on the technologies of other countries.
After 10 years, Viettel can now confidently produce nearly all equipment for the core telecom network, including the online charging system (OCS), the messaging system, the 4G base transceiver station, etc.
Viettel is in fact one of the five biggest device manufacturers and listed among the top 50 most valuable telecom trade-marks in the world. Viettel is also the leading company in carrying out R&D and producing hi-tech equipment for defense and security purposes in Vietnam.
In two years, 2017-2018, the total revenue from R&D and manufacturing of Viettel reached VND 17,400 billion (more than USD 750 million) with a profit of VND 5,250 billion (about USD 226 million).
Translated by Huu Duong