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Viettel and a new telecom revolution

30-11-2016 | Viettel Headlines
At the 9th Cambodia-Laos-Viet Nam (CLV) Development Triangle Area Summit took place in Siem Reap, the Kingdom of Cambodia on 23/11 and 24/11, Prime Minister Nguyen Xuan Phuc has recommended setting up local mechanisms among the three countries to reduce the cost of communications, promote closer cooperation, stimulate the economic development of the three countries.

To complete this mission, Viettel Group (Viettel) and Metfone (Viettel’s Brandname in Cambodia) and Unitel (Trademark of Viettel in Laos) will collaborate to allow its subscribers to contact to the other network by the same way as internal communications network operating in the country. This (if implemented) could be the starting point for a revolution in world-class telecommunications because there is no precedent for this breakthrough solution.

Prime Minister Nguyen Xuan Phuc and Vietnam delegation team at 9th CVL9 Summit in Siem Reap, the Kingdom of Cambodia.

Local telecommunication mechanism with CVL

Viettel is ready with technical conditions to implement this mechanism from 1-1-2017. Also at the conference, Prime Minister Nguyen Xuan Phuc has asked Mr. Samdec Hunsen - Prime Minister of Cambodia and Mr.Thongloun Sisoulith - Prime Minister of Lao to allow Viettel to help Cambodia and Laos build 4G telecom networks in order to support the development of e-government.

At the meeting, the Cambodia’s PM expressed pleasure at the proposal of the Vietnam and recommended that Viettel, Metfone and Unittel should carry out a research into establishing a video conferencing system among Cambodia – Laos and Vietnam, which can help ministries and relevant agencies of the three countries discuss directly the cooperation issues with each other for purposes of saving expenses, trip time and improving work efficiency. The Cambodian PM highly appreciated the fruits of Metfone in Cambodia, including the construction of telecommunications infrastructure systems, modern information technology which served activities of public authorities in Cambodia. "Without the presence of Metfone, there are many things we do not know how to resolve", said the PM

The Pioneers

Talking to reporters, Major-General Nguyen Manh Hung - General Director of Viettel Group shared that Viettel have desired to build an internal telecommunication network for the whole of Viettel’s subscribers in three countries in the Triangle Area (CLV). The subscribers in CLV can make an international phone call by the same way as local calls in the near future. Additionally, when the subscribers travel to the 4th country, the roaming charges for will be the same. If the ideas and technical solutions are implemented, it will be a great contribution of Viettel to economic development in the region, enhancing the quality of life of people.

By the time, there are no regional or an economic bloc in the world could make the charges of international communication the same as a national call. Therefore, if the proposal of PM Nguyen Xuan Phuc is implemented successfully, it would be a humane telecommunication revolution.

Viettel – Bridge of international markets

In fact, Viettel is fully capable of facilities, technical, financial strength and market share to be able to take the lead in the CVL market. The wonderful thing that Viettel has given the telecommunications industry in particular and the economy in general of the three countries is a demonstration of the above serious suggestions.

Before Metfone, the Cambodia telecom market had 7 different operators, including 3 networking operators with 10 years’ experience of operating in the market is Mobitel, Mtfone and TMIC and a huge market share. Moreover, Mobitel accounted for over 50% market share. With the brand name “Metfone”, Cambodia had become Viettel’s first foreign market. Two years after launching in 2009, Metfone has created a miracle in the history of telecommunications in Cambodia when rising sharply to take number one market position. After six years, Metfone still holds this position with 46% market share in mobile service, 60% fixed broadband market share which made profit for more than USD 200 million.

Metfone - the Viettel’s first brand name in foreign market

It is obviously that Metfone has made major contributions to Cambodia's telecommunications industry by covering nearly 9,000 remote stations (2G, 3G, 4G) and setting up 20,000 km fiber (100% districts and 95% of communes) while the 2nd network has only 5,000 km of optical cable.

On the other hand, in Laos, Unitel is a trademark of the company Star Telecom, a joint venture between Viettel and partner L.A.T in Laos which Viettel accounted for 49% of shares. This is the second foreign brands of Viettel (after Metfone in Cambodia), opened 10-2009. Following the success of Metfone, Unitel has quickly become the No. 1 network in Laos for 6 years. 

Currently, annual profit of Unitel is fluctuated from 50 million to 100 million. As of 8-2016, the company has achieved 1 billion USD accumulated revenue after 7 years of business, in which EBITDA (earnings before tax, interest and depreciation) reached more than 60%.

Unitel’s staffs are working in a mountainous province in Laos

Unitel is now a leader of Laos mobile network market, covering from the whole country to the difficult terrain areas with more than 4,000 stations (2G, 3G and 4G) and 23,000 km fiber optic cable. Averaged over 1 million people, fiber density reaches 6.600km (6.6 times higher than that of the world’s average density), the density of broadcasting stations is 950 (5 times higher than that of the world’s average density).

Development Triangle Area Cambodia - Laos - Vietnam was set up for the purpose of strengthening cohesion and connectivity among three countries in the region. The solutions for Telecommunications and Information technology is a breakthrough direction for three national economies, which aim to gradually erase the gap of space and territorial borders in order to bring the countries closer and built a sustainable development together. 

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