Development Status of Fiber Optic Internet Services in Vietnam

difficulties in implementing marketing activities at the unit. Propose some solutions to contribute to improving marketing activities at VNPT Ben Tre Business Center by 2022, including solutions on Distribution (Place); Promotion; People, Process and physical evidence.

All of the above studies have contributed to exploring factors related to marketing-mix activities for services, especially domestic studies mainly focus on 4 or 7 components of marketing-mix including: product, price, distribution, promotion, people, process and tangible means. Therefore, in this study, the author will continue to inherit the discovered factors and add more observed variables to suit the reality.

1.7 Proposed research model

Based on the marketing theories studied, previous theses and dissertations, combining the 4Ps model of McCarthy (1960) and the 7Ps of Boms and Bitner (1981), it is found that, in addition to factors such as product, price, distribution, promotion in the 4P model, the 7P in service marketing adds the human factor, taking it as the main factor for promotional campaigns to create a difference in the perception of users. Therefore, in this study, the author proposes to use the 5Ps model, combining the 4P in traditional marketing and 1P in modern marketing to perfect the marketing policy - service mix for FPT Telecommunication Joint Stock Company, Hue branch. Specifically, the model:

Figure 1.8: Marketing-mix research model of FTTH service

(Source: Author's proposal)

Research hypotheses:

H1: Product policy has a positive influence on customer satisfaction.

with fiber optic service.

H2: Pricing policy has a positive impact on customer satisfaction with

fiber optic service

H3: Distribution policy has a positive influence on customer satisfaction.

with fiber optic service.

H4: Promotion policy has a positive impact on customer satisfaction.

with fiber optic service.

H5: Human resource policy positively affects customer satisfaction.

with fiber optic service.

Through the research process, the author has proposed a scale table including 24 component scales. The component scales are evaluated through a 5-level Likert scale from 1 to 5 corresponding to strongly disagree to strongly agree.

Table 1.1: Table of scale components of the research sample

Symbol

Component scale
Product policy scale
SP1	Good and stable signal quality
SP2	Customers have many packages to choose from.
SP3	Quality broadcasting equipment guaranteed
SP4	Packages are constantly being added with new features.
SP5	Service quality suitable for each type of fare
Pricing policy scale
G1	Reasonable installation, setup and connection costs
G2	The price is suitable for the needs of each user.
G3	Rates are comparable to other providers
G4	Stable monthly service fee
G5	Customers are willing to use at current prices
Distribution policy scale

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PP1

Customers find transaction points easily
PP2	Diverse service distribution network (transaction points, customer care, business centers) business,…)
PP3	Good distribution system, meeting customer needs
PP4	In distribution systems, the exchange method is fast and efficient.
Promotion policy scale
XT1	Advertisements for fiber optic Internet services are widely available on various media. media
XT2	Attractive and engaging advertising format
XT3	Regular promotions
XT4	Promotional programs are diverse, attractive and suitable for every need. use of customer service
Human Policy Scale
CN1	Staff have enthusiastic and friendly service attitude
CN2	Highly qualified staff
CN3	Staff are always available to handle problems upon request.
CN4	Always monitor customer situation, ask about and take care of your customers
CN5	Professional service method, enthusiastic consultation, clear, easy to understand, implementation Quickly declare situations
CN6	Beautiful, recognizable staff uniforms

General rating scale:

General assessment scales were assessed using a 5-point Likert scale ranging from 1 to 5 corresponding to strongly disagree to strongly agree.

Table 1.2: General rating scale

Symbol

General rating scale
DGC1	How satisfied are you with the company's FTTH fiber optic Internet service?
DGC2	How satisfied are you with the company's marketing policies for the service? FTTH fiber optic cable?
DGC3	How likely are you to recommend the service to your friends/relatives? FTTH fiber optic internet?

1.8 Practical basis

1.8.1 Development status of fiber optic Internet services in Vietnam

The fixed broadband Internet market has been extremely competitive in recent years. VNPT, from its position as the market's exclusive Internet provider with widespread infrastructure, has faced fierce competition from Viettel, FPT and the participation of many other providers. Up to now, the market has been relatively well-defined, VNPT (over 40%), Viettel (38%), FPT (14%) holds over 92% of the fixed broadband Internet market share, the rest belongs to SCTV, SPT NetNam, VTC...

According to the data of the Department of Telecommunications (Ministry of Information and Communications) in 2019, the total revenue of the entire telecommunications industry reached 470,000 billion VND, an increase of 19% compared to 2018, fixed broadband internet subscribers reached 14.8 million subscribers, an increase of 13.9% compared to the same period in 2018. The scale of the fixed broadband internet segment has continuously grown and by the end of 2019, it reached a revenue of more than

24,200 billion VND. In the context of voice and SMS continuously declining revenue and profit, fixed broadband Internet continues to grow strongly, becoming a fulcrum for network operators. The potential and room for fixed broadband Internet to develop is still very large. Currently, there are only more than 16 million fixed broadband Internet subscribers (both families and businesses, organizations), while the total number of households is nearly 27 million.

As of early 2020, according to the report assessing the state management situation in the first 6 months of 2020 by the Ministry of Information and Communications, due to the impact of the Covid-19 epidemic (especially in April 2020), total telecommunications service revenue by the end of May 2020 reached VND 52,849 billion, down 4.85% over the same period last year.

Immediately after the Government lifted social distancing, telecommunications service revenue in May increased compared to April (although still down 1.7% compared to May 2019) when total revenue reached VND 10,259 billion, up 4.47% compared to the previous month. Of which, fixed telecommunications service revenue reached VND 2,854 billion, up 0.5% compared to the previous month (and up more than 32% compared to May 2019).

Up to now, fixed broadband Internet access subscribers have reached 15.71 million, an increase of 2 million over the same period; mobile broadband subscribers (3G, 4G) are 65.33 million, an increase of more than 8 million over the same period. Through checking the Internet access speed in May 2020 in Vietnam, it shows that the mobile broadband download speed in May 2020 reached 32.83 Mbit/s, down 6.25% compared to April 2020, ranked 60th (up 4 places compared to May 2019, down 11 places compared to April). Fixed broadband download speed

The average is 52.29 12 Mbit/s, up 7.8% compared to April, ranked 59 (up 10 places compared to May 2019).

and keep the same level as April).

1.8.2 Development situation of fiber optic Internet service (FTTH) in Thua Thien Hue province

Thua Thien Hue currently has more than 86,500 Internet subscribers, the number of Internet service users in the province is about 35%, Hue city accounts for 65%. This is a fertile and potential market. With a growing population density and the number of customers using fiber optic Internet, it has promoted fierce competition among current providers.

Currently, Thua Thien Hue province mainly has 3 network operators providing this service: VNPT, Viettel and FPT. VNPT and Viettel are accounting for about 80% of the Thua Thien Hue market, the remaining market share belongs to FPT and other network operators.

In 2019, VNPT Group assigned a plan with the highest growth rate in recent years (over 10%), while the average growth rate in the period 2015-2018 for total revenue in the area reached 4.5%, fixed broadband Internet service 7.6%. Total revenue from VT-IT services in 2019 reached 336,824 million VND, completing 90.5% of the plan and 101% over the same period. (Mr. Nguyen Nhat Quang, 2019). This shows that broadband Internet services are increasingly developing strongly in Thua Thien Hue.

As incomes increase, people in Thua Thien Hue have more demand for entertainment, communication, exchange, and information updates. This has made the market share of fiber optic internet continuously expand. In addition, the increasingly strict requirements on quality, price, and service accessibility of consumers have posed more new tasks for network operators in the process of providing services. The dominant network competitors are Viettel and VNPT. Many customers have switched to using the networks of these two competitors, partly because FPT's fiber optic infrastructure has not been exploited and expanded to places far from the city, while Viettel and VNPT have completed the fiber optic system, so customers have refused to use FPT network and instead use Viettel and VNPT networks.

FPT Telecom Joint Stock Company, Hue branch, must meet customer needs better than other competitors. Therefore, the company must further improve its marketing mix policies for FTTH services in the coming time.

Chapter 1 Summary

In chapter 1, the author presented a system of theoretical bases on marketing theory, marketing - mix, overview of services and telecommunications services. At the same time, based on previous marketing theories, commenting on research conducted on marketing, thereby proposing a research model which is the 5Ps model combining the 4Ps model of McCarthy (1960) and the 7Ps model of Boms and Bitner (1981) including the factors: Product, Price, Place, Promotion and People to survey customer opinions on the marketing - mix policy for the company's FTTH fiber optic Internet service. Thus, with the above model and related theories, the official scale and research direction have been formed as the basis for the research content in the following chapters of the thesis.

CHAPTER II: CURRENT STATE OF MARKETING POLICY – MIX

FOR OPTICAL CABLE INTERNET SERVICES AT FPT TELECOM JOINT STOCK COMPANY HUE BRANCH

2.1. Marketing mix policy context at FPT Telecommunication Joint Stock Company, Hue branch

2.1.1.Overview of FPT Telecommunication Joint Stock Company Hue branch

2.1.1.1 History of formation and development

FPT Telecom Joint Stock Company (abbreviated as FPT Telecom) - Is a member of Vietnam's leading technology group FPT. FPT Telecom is currently one of the prestigious and customer-loved telecommunications and Internet service providers in Vietnam and the region.

(Source: www.fpttelecom.com)

Figure 2.1: Logo of FPT Telecommunication Joint Stock Company

Established on January 31, 1997, originating from the Online Service Center founded by 4 members with the first Intranet product of Vietnam called "Vietnamese Intelligence - TTVN", the product is considered to lay the foundation for the development of the Internet in Vietnam.

After 23 years of operation, FPT Telecom has more than 9,000 official employees, with more than 220 transaction offices belonging to nearly 90 business units, in 59 cities.

In addition, the company has been making its mark on the international arena with 12 branches across Cambodia and 1 branch in Myanmar.

(Source: www.fpt.vn)

Figure 2.2: The formation and development process of FPT Telecom

With the pioneering mission of bringing the Internet and connectivity to the Vietnamese people and the great desire that every Vietnamese family uses at least one of the company's services, FPT Telecom has been making efforts to invest in upgrading infrastructure as well as product and service quality, enhancing the application of advanced technology to bring customers constantly improved experiences.

Head office:

Hanoi: PVI Building, No. 1 Pham Van Bach, Cau Giay

Tel: + 84 24 7300 2222 | Fax: +84 24 7300 8889

Da Nang: 182 – 184 September 2 Street, Hai Chau

Tel: + 84 236 7300 2222 | Fax: +84 236 3899 889

Ho Chi Minh City: Lot 37 - 39A, Road 19, Tan Thuan Export Processing Zone, Tan Thuan Dong Ward, District

Tel: + 84 28 7300 2222 | Fax: +84 28 7300 8889.