Competitiveness in Providing Mobile Information Services of Mobifone, Vinaphone and Viettel According to Customer Evaluation

want to use, stand shoulder to shoulder with the world's leading brands such as Nokia, Honda, Big C (research by TNS or AC Nielsen).

Standing out from VNPT, Viettel with the slogan “Speak your way” is very impressive, showing a strategic orientation that is considered very effective. Previously, the market had only one service provider, VNPT, consumers had to accept the services, products, and service quality according to VNPT’s service style without any other choice. Therefore, with this slogan, consumers feel that they are respected and will receive better service “in their own way” than they expect.

Viettel brand was granted the certificate of “Strong Brand” by the Trade Promotion Agency and Vietnam Economic Times. After building the brand with the business philosophy of continuing to innovate to care for customers as individuals. The slogan “Say it your way” has penetrated public opinion and most Vietnamese people know it. Viettel has a very good position in the hearts of customers.

Some awards that Viettel has achieved in recent times: In Vietnam

The first company to break the monopoly in the BCVT industry in Vietnam.

The leading mobile network in Vietnam providing GPRS services nationwide, with 11 million subscribers, and is one of the fastest growing mobile networks in the world (voted by Wireless Intelligence magazine).

No. 1 in mobile services in Vietnam.

No. 2 in PSTN, VoIP and ADSL service coverage in Vietnam. No. 1 in fiber optic transmission speed in Vietnam.

No. 1 in distribution network in Vietnam.

No. 1 in technical breakthrough: Transmitting and receiving on a single optical fiber.

Number 1 in customer service call center size in Vietnam. In the region

The first Vietnamese telecommunications company to invest directly abroad. Number 1 in Cambodia in telecommunications infrastructure.

In the world

Among the 100 largest telecommunications brands in the world

The world's fastest growing mobile network (voted by Wireless Intelligence magazine).

"Service Provider of the Year in Emerging Markets" Award in the Frost&Sullivan Asia Pacific ICT Awards 2009.

World Communication Awards 2009 voted Viettel as "The world's best telecommunications service provider in developing countries".

World Communication Awards 2011 voted Metfone - Viettel's brand in Cambodia as "The world's best telecommunications service provider in developing markets" (Source: http://www.viettel.com.vn/Giai_thuong.html)

Thus, in terms of brand and corporate reputation, Mobifone is still the leading brand. Although Viettel was born later, with appropriate policies, steps and vision, it has risen to second place. Although Vinaphone was born very early and is part of a strong corporation, its image building, brand development and reputation are still ranked last in the top 3 strongest companies in the mobile information services market.

From the above customer interview survey information, we have a table to evaluate the competitive capacity in providing mobile information services of 3 companies MobiFone, VinaPhone and Viettel as follows:

Table 3.20: Competitiveness in providing mobile information services of MobiFone, VinaPhone and Viettel according to customer assessment

Unit: point

Criteria

MobiFone	VinaPhone	Viettel	Leading
Quality of service	3,765	3,717	3,685	MobiFone
Service fee: postpaid	1,517	1,867	1,085	VinaPhone
prepay	2,578	2,093	3,119	Viettel
Service distribution channel system	3,658	3,678	3,828	Viettel
Service differentiation	3,500	3,233	3,402	MobiFone
Information and trade promotion	3,787	3,644	3,745	MobiFone
Brand and service reputation	3,879	3,833	3,970	Viettel

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Source: Survey data

In general, according to customer assessment, the competitiveness of the 3 leading mobile information service providers in the Vietnamese market is relatively high. The evaluation criteria of the companies do not have significant differences and all achieve above 3 points. In particular, the service price criterion has low scores and significant differences: in terms of postpaid service prices, although VinaPhone has the highest score, it is still 2 points lower, and in terms of prepaid service prices, Viettel leads with a score greater than 3.

However, to improve their competitiveness, these companies need to pay attention to the following issues:

1, Ensure that customer calls do not drop during conversations. 2, Quickly resolve customer complaints.

3, Resolve customer complaints in a reasonable and fair manner. 4, Quickly resolve any communication issues.

5, Reduce monthly subscription costs for postpaid subscribers. 6, Reduce call charges.

7. Increase promotions and discounts for postpaid subscribers.

8, Monthly bills for postpaid subscribers need to be clearer and more accurate. 9, For prepaid subscribers, the switchboard needs to deduct call charges from customers.

Exactly.

10. The process and procedures for changing service types need to be easier and simpler. 11. Keep the remaining amount in the account when customers change service types.

service form

12, Improve the skills of traders.

13, Sales skills training for sales staff. 14, Create clear differentiation between service types.

15, Offer new services to meet customer needs.

16. Provide services that inherit good characteristics and are loved and chosen by customers.

17, Create special services to meet different market segments. 18, Diversify the company's service types.

19. Provide beautiful, eye-catching service introduction books and photos.

20, Taking customer benefits as the service provider's motto.

3.4. General assessment of the competitiveness of Vietnamese telecommunications companies in providing mobile information services

3.4.1. Strengths

- The network scale and coverage are increasingly wide and deep. MobiFone and Vinaphone are the two earliest mobile networks in the Vietnamese mobile telecommunications market.

Vietnam and has a continuous increase in coverage and BTS installation over the years. Viettel is a latecomer, but has developed its network before doing business, so in a short time since its establishment in 2004, it has rapidly increased its coverage continuously and in 2006, it began to surpass Vinaphone and MobiFone. Up to now, Viettel has covered 63/63 provinces and cities nationwide. Viettel is the mobile network with the widest and deepest coverage in the country, especially in remote areas, border islands where other mobile networks have difficulty reaching.

- Revenue is increasing, the number of mobile subscribers is increasing rapidly with many people using mobile services. Along with the promotion of installing more base stations and increasing coverage, mobile information service providers have constantly competed, pushing the race to develop subscribers.

- Flexible pricing policy, with diverse and customer-oriented services. Telecommunication companies are competing to reduce prices to attract customers and develop new customers.

- Telecommunication companies also continuously launch many different service packages to meet the maximum needs of customers. In addition, companies constantly provide value-added services on mobile networks to bring customers diverse and rich services.

- Customer care is increasingly focused on. In today's increasingly competitive telecommunications market, service quality is a vital factor in retaining customers and developing new customers. Telecommunication companies pay great attention to customer care, increasing call center staff to serve customers as quickly and accurately as possible. Customer care is carried out in all 3 stages: before, during and after sales.

3.4.2. Weaknesses

- The State's management mechanism for telecommunications enterprises is still inadequate. State management agencies have not been able to strictly manage mobile subscribers of telecommunications companies, and the data publicly announced by state agencies on mobile telecommunications is slow and limited.

- All three telecommunications companies are state-owned enterprises. MobiFone and Vinaphone belong to the Vietnam Posts and Telecommunications Group, Viettel belongs to the Ministry of National Defense, so when making investments and expanding abroad... it often takes a lot of time and procedures to get permission and report to the state agency in charge.

- Companies grow and develop unevenly. Viettel is the company with the largest subscriber growth rate and the widest and deepest coverage.

- Service quality is not stable.

- The telecommunications market is growing too hot, telecommunications companies are competing to increase subscribers, competing for subscribers while investment in network infrastructure has not kept up, leading to network congestion that often occurs, especially during holidays, New Year and Lunar New Year...

3.4.3. Causes

- Due to the characteristics of the mobile information sector: the characteristics of mobile information service provision of companies depend on the population, the state of the economy, or in other words, depend on the density and income level of the population, therefore, despite all efforts, the growth rate, competitiveness... still depend on the overall growth rate of the economy.

- The management mechanism still has many shortcomings: all three major companies providing mobile information services mentioned above are currently operating under the form of 100% state capital, therefore, the management of investment and prices by the Government leads to difficulties for companies in proactively developing and expanding the market. Regarding prices, to ensure competition, the Government currently applies two forms of price management: registration and notification. For enterprises with a controlling market share or in the group of enterprises with a controlling market share, the form of price registration must be applied. For enterprises not in the list with a controlling market share, the form of price notification must be applied. However, to determine which enterprise has a controlling market share, the competent authority does not have specific regulations and sanctions. Enterprises are free to notify their subscriber numbers and coverage areas to achieve communication and marketing goals, but the competent authority does not grasp the actual figures of market developments to make policies.

Because of this gap between policy and reality, mobile information service businesses have not been able to take advantage of the government's great support to develop and increase competitiveness.

- The habit of using telecommunications and internet services in Vietnam is currently increasing rapidly but is still at a low level.

- Companies with imbalances in their long-term business development strategies: manifested in large differences and fluctuations in market share growth rates. Uneven growth is not only reflected in fluctuations in mobile information service market share but also clearly reflected in the expansion of coverage areas.

- The analysis and forecasting work of companies is not really good, which is the reason why the decisions of the company's management are not really close to the practical situation.

of the market, thereby significantly affecting the business results and competitiveness of companies.

- There is no clear solution to increase service revenue: most businesses have not yet escaped the problem of subscriber development, so the long-term strategy for service development has not been focused on. Therefore, revenue and profit per subscriber are decreasing while the solution to increase service revenue has not been clearly planned.

- The staff of the companies have not been trained systematically and uniformly in different localities.

Some other risks are less likely to occur but if they occur, they will greatly affect the operations of companies such as: natural disasters, wars, epidemics, etc.

CONCLUSION OF CHAPTER 3

This chapter has clarified the characteristics of providing mobile information services in Vietnam with technology infrastructure, capital, human resources, etc. Mobile information service providers in Vietnam have been in business for nearly 20 years with major milestones such as 1993, which witnessed the birth of MobiFone and the beginning of providing mobile information services. By 2004, the market had changed significantly thanks to the appearance of Viettel, a factor that promoted the strong development of companies. Over the years, companies have continuously improved their competitiveness in providing services in depth and breadth with revenue increasing steadily every year, coverage growth rate increasing strongly especially in the last 2 years, service scale has been continuously expanded along with the growth rate of distribution channels of companies. Up to now, customers have been able to access services quickly and conveniently anywhere in the country. However, the analysis of the current competitive capacity in service provision of companies also shows many limitations of the market such as: promotion competition causing service quality to decline, high number of customers leaving the network, reduced revenue... Through the analysis of survey data of 972 customers and secondary data collected from companies, the Ministry of Information and Communications, General Statistics Office, VCCI,... the author has seen the competitive capacity of 3 leading telecommunications companies in the market and has proposed a number of issues that companies need to solve. In addition, the author has also drawn out the common strengths and weaknesses of all three companies as well as each individual company in improving the competitive capacity in providing mobile information services in the market.

CHAPTER 4: DIRECTIONS AND SOLUTIONS TO IMPROVE COMPETITIVENESS IN PROVIDING MOBILE INFORMATION SERVICES OF VIETNAMESE TELECOMMUNICATIONS COMPANIES

4.1. Development orientation of Vietnamese telecommunications companies in providing mobile information services in the coming time

4.1.1. Opportunities and challenges for Vietnamese telecommunications companies in providing mobile information services in the coming time

4.1.1.1. Market development trends

According to data released by the General Statistics Office, 2011 was the first year that the Vietnamese mobile information market witnessed the actual number of new phone subscribers reaching 11.8 million, a decrease of 12.9% compared to 2010. 2011 was also the year with the largest decrease in the number of new monthly subscribers compared to the same period of the previous year.

In direct proportion to the growth of new subscribers, the ARPU of network operators has also decreased sharply. The average ARPU level is now only about 2-3 USD/month, instead of 5-6 USD like one or two years ago.

This has proven that the demand for pure mobile phone services such as calling and texting has gradually reached saturation. Voice revenue from each subscriber has decreased significantly. However, this is not the case with data services, which have even grown dramatically.

In 2011, VMS-MobiFone achieved revenue of over 38 trillion VND. Notably, revenue from data services accounted for 40% of total revenue. In 2011 alone, MobiFone developed 1.3 million new subscribers with data traffic increasing dramatically by 400% compared to 2010 (Source: VMS-MobiFone). Not only MobiFone, revenue from non-voice services of VinaPhone mobile network in 2011 also increased sharply, reaching 40% of total revenue [27].

The decline in voice revenue has revealed new business opportunities from mobile data services. Because just a few years ago, the revenue level of 20-30% from data and mobile value-added services was not something that every network operator could easily achieve.

In addition, with the current high density of voice promotions from mobile companies, revenue from voice will decline even more miserably, instead, making money will largely depend on data services in the coming time.

With increasing consumption and rapid adaptation to technology, consumers will be the main users of data services, creating greater changes in the mobile broadband market.

According to statistics, globally, 3% of smartphone users can consume 40% of mobile network capacity. Using smartphones will create data traffic 10 times higher than traditional phones in the past.

Vietnam's telecommunications industry has witnessed the increasing emergence of smartphones and tablets, devices that will create new habits for mobile users and generate increasingly large data traffic.

The shift from voice services to data services is reflected in new consumer habits and is also a new source of revenue for network operators. This is both an opportunity and a big challenge for Vietnamese mobile networks at this time. Because the content service warehouse of network operators is still quite poor. To be more attractive, network operators not only need to reduce prices and improve service quality but also need to enrich their value-added services with the most attractive and diverse content.

4.1.1.2. Opportunities for Vietnamese telecommunications companies

- With a strong commitment to open the market, in the period of 2013-2015, the Vietnamese mobile information market will have more domestic and foreign operators participating in many forms. Current telecommunications companies will have the opportunity to access new sources of investment capital, techniques, technology and management experience; have the conditions to modernize the network, expand services, train and improve the quality of leading staff... helping to improve the competitiveness in providing services of companies.

- The trend of globalization and international economic integration; the strong implementation of information systems supporting companies along with the Government's investment incentive policies... makes it easier for companies to expand their markets abroad. Companies will have more opportunities to seek profits abroad when the domestic market is increasingly divided and profit margins are decreasing.

- The strong and independent competitive environment forces companies to constantly innovate in both service provision as well as organizational models, management thinking... to always bring satisfaction to customers, improve competitiveness, increase production and business efficiency....

- The developing economy, the cooperation and diverse economic links between countries and within the economy create conditions to promote the demand for using mobile information services. With advantages in network scale, service provision capacity, brand and reputation... this is a favorable opportunity for companies to increase revenue, expand markets,...

- Expanding cooperation and global economic links helps telecommunications companies more easily access new technology, promote the application of new, high-quality services, attract customers, develop production and business...

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