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Total Subscribers At Vnpt In Nghe An From 2016 - 2020


Chart 2.2: Total subscribers at VNPT in Nghe An from 2016 - 2020

Source: VNPT Nghe An


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Chart 2.3: Total revenue and revenue by type

Source: VNPT Nghe An Through the data table, it can be seen that the fixed telephone service market of VNPT Nghe An has not developed stably in recent years, especially recently, fixed telephone revenue has tended to decrease. By the end of 2020, fixed telephone revenue was 137,536 billion VND, down 5,087 billion VND compared to 2019. However, this is still a service that brings high revenue to VNPT Nghe An, accounting for nearly 18% of the total revenue of the unit. The above result is a great effort of the whole unit in solving difficulties.

difficulty in the number of cables and switchboard equipment.

Along with Viettel's HomePhone service launched in mid-2007, VNPT Nghe An's Gphone service, although available later, since early 2008, with preferential rates for low-income households,


lowering the price for public telecommunications areas along with many other attractive promotions such as giving away terminals, the number of subscribers has also increased very quickly. By the end of 2016, the unit had developed 37,000 Gphones, bringing in total revenue of about 125,110 billion VND. However, due to the decrease in customer preferences in January 2011, and the suspension of public telecommunications prices, revenue has decreased significantly. By the end of 2014, there were only 20,156 subscribers left, with revenue of 41,230 billion VND.

(Unit: billion VND)


Chart 2.4: Mobile network revenue

Source: VNPT Nghe An (Unit: billion VND)


Chart 2.5: Broadband Internet Service Revenue

Source: VNPT Nghe An (Unit: billion VND)

Chart 2.6: My TV service revenue

Source: VNPT Nghe An


(Unit: billion VND)


Chart 2.7: Other service revenue

Source: VNPT Nghe An

For internet and broadband services: The above table shows that the internet and broadband service market has achieved very rapid growth with revenue of 143,256 billion VND by the end of 2020, an increase of 9.03% compared to 2019. Of which, data transmission service revenue is 107,231 billion VND, an increase of 22.75% compared to 2019. The above results show that with its reputation and many years of experience in providing services, along with owning a telecommunications network that has been invested in widely, closed, and capable of meeting customer requirements, VNPT Nghe An is always trusted by customers. Other businesses that have just entered the market do not have such basic advantages.

In addition, by understanding the needs of each customer group, dividing the service into many packages with different speeds has well met the needs and choices of many customers to exploit potential customers and at the same time increase competitiveness with competitors. VNPT Nghe An has also identified its target customers as agencies,


businesses. They are willing to pay high fees to use services with download speeds suitable for their purposes. This group of customers has brought VNPT Nghe An high and stable revenue. In addition, Mega-VNN service is not simply internet access, e-mail but also has other utilities such as: online shopping, video conferencing, distance learning, online games, watching video on demand, ... These services also contribute to the rapid increase in demand for broadband services.

Telecommunication infrastructure leasing service: currently, the revenue from this service accounts for a relatively small proportion, only about 4-5% of the total revenue generated at the unit. Although the business process of telecommunication infrastructure leasing service of VNPT Nghe An in the past time has encountered many difficulties due to the continuous decrease in customer fees, especially the price of domestic channel leasing has been adjusted down by the Group every year to suit the needs of customers. In addition, the unit is gradually sharing the market with competitors (mainly channels below 256kpbs speed), however, this target still increases every year, reaching 107,231 billion VND by the end of 2020, an increase of about 22.75% compared to 2019, mainly domestic and provincial information channels for lease. The reason is that the number of customers leasing telecommunication infrastructure of VNPT Nghe An is currently quite large and diverse. Previously, the main customer base consisted of telecommunications enterprises renting E1 lines to provide telecommunications services and some banks renting lines to transmit data within the unit. Now, the number of customers has increased significantly, because most banks have ATMs, open many branches and transaction offices, so they need to rent lines to transmit data to each other. In addition, some agencies, enterprises, large production and business units have branches and offices in many places, so they need to rent lines from the unit to connect with each other. Following the trend of restructuring the Vietnam Posts and Telecommunications Group, information


By recreating a backbone business, telecommunications infrastructure leasing services will be encouraged. Therefore, private channel leasing services are still one of the key telecommunications services of VNPT Nghe An. Every year, the unit is informed by the Group of plans and provides connection capacity to other businesses at specific times. Currently, in Nghe An province, VNPT Nghe An is still the leading enterprise in providing private channel leasing services. The reasons are:

- Stable international network, with large international channel capacity.

- Good quality.

- Perform well sales activities and after-sales care.

- Has a team of highly skilled technical staff to meet the increasingly diverse needs of customers.

- Meanwhile, new telecommunications businesses will take a lot of time to invest and build networks. Therefore, there are network elements that need to be rented from VNPT Nghe An such as equipment installation stations, E1 lines, sewers, etc.

2.2.2.2 Product and service quality

To improve competitiveness in the telecommunications market and to meet the increasingly diverse needs of customers, VNPT constantly offers new services and value-added services to attract customers. In addition to diversifying services, VNPT constantly improves quality. Service quality is the top criterion for customers to choose services. Service quality is shown in the following aspects: quality of voice communication, coverage area, rich value-added services... Besides the efforts, there are still some points that need to be overcome such as some new services are introduced but the level of use by customers is not much because there are no reasonable forms of attracting customers such as service advertising,


let customers try the service, free of charge for a certain period of time…

For competitors today, the number of telecommunication services launched is still very small, but when they provide a service, they advertise and market that service very well, so attracting customers is also more convenient. Complaint resolution, warranty, maintenance is also faster and more enthusiastic.

2.2.2.3 Product and service selling price

VNPT Nghe An has been more proactive in proposing and handling issues regarding telecommunication service prices, being flexible in the face of market fluctuations, attracting customers, and improving product quality. Most telecommunication services have been reduced in price to the same level as other countries in the region and major competitors. There are different prices for different markets, for different customer groups. Diversifying services has given customers appropriate choices in terms of service quality and service prices. Currently, VNPT does not have a good price policy for large customers, especially postpaid customers and loyal customers to attract and retain customers. With new value-added services, monthly subscription fees should be promoted or reduced to the maximum, allowing customers to try them out. VNPT's competitors are all new enterprises that are more favored by the State, so for them, pricing is easier, advertising, promotions, and commission discounts are more flexible.

In August 2010, with the approval of the Ministry of Information and Communications, the three largest mobile networks in the Vietnamese mobile information market, which hold a controlling market share, had a maximum rate reduction of up to 15%. For example, currently with VinaPhone's prepaid package VinaCard, after the rate reduction, the domestic call rate is 1,180 VND/minute and the international call rate is 1,380 VND/minute. With the package


VinaPhone's postpaid calls are charged at 880 VND/minute for domestic calls, 980 VND/minute for international calls, and the monthly subscription fee is 49,000 VND/month.

2.2.3 Contents of implementing competitiveness enhancement at Vietnam Posts and Telecommunications Group in Nghe An telecommunications market

2.2.3.1.Financial capacity

It can be said that VNPT Nghe An's telecommunications network has been invested in modern technology with complete digitalization and has switched to the new generation network NGN, this technology has the most advanced features today, allowing support for all methods of information transmission such as sound, data, images and ensuring the provision of all services, meeting the increasingly diverse needs of customers such as telephone, data transmission, internet, television, radio, online entertainment... The biggest advantage of the NGN network is that it allows the deployment of services quickly and diversely, meeting the convergence between voice information, data transmission and the Internet, between fixed and mobile... at low cost. VNPT Nghe An's copper and fiber optic cable network system covers the entire province and is capable of providing services to customers in most areas. In particular, the fiber optic cable system has reached most urban areas and densely populated areas, allowing the provision of high-speed, stable internet connections and the ability to provide many value-added services and utilities to meet the increasing needs of consumers. With experience in the telecommunications and information technology industry, VNPT Nghe An is a leading enterprise in applying information technology in operations, production and business management. Currently, most of the production and business processes at the unit have been computerized by application software such as: customer and debt management programs; billing and invoice printing programs; cable network management programs; Vinaphone business data analysis programs; promotion management; investment management; document management... Thereby shortening production processes

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