Vietnamobile blames market struggle on unfair competition

By Anh Tu   March 5, 2021 | 12:25 am PT
Vietnamobile blames market struggle on unfair competition
A person holds a mobile sim pack of Vietnamobile. Photo courtesy of Vietnamobile.
Telecom service provider Vietnamobile is blaming unfair competition from state-owned giants for its failure to make any market headway in the last 12 years.

Nearly 33,000 subscribers left Vietnamobile in the first three weeks last month, showcasing the difficulties the carrier faces in retaining customers.

It received no request for subscriptions in the period, during which telecom giant Viettel welcomed over 24,600 new subscribers, according to the Ministry of Information and Communications.

Vietnamobile, which aims to attract subscribers with a low-cost strategy, often receives complaints of low signal even in major cities, the small number of branches and poor customer service quality.

In 2019, Vietnamobile and two other carriers accounted for just 4.61 percent of the market, while three state-owned giants Viettel, VNPT and Mobifone, claimed more than 95 percent, according to the ministry.

Vietnamobile has blamed its difficulties on the limited spectrum it receives compared to the three main competitors, which it says limits it from providing the best services to customers.

In 2019, the company had requested five government bodies to create fairer spectrum auction policies.

Another challenge the company faces is its limited resources and staff. Last year, the company recorded a profit of nearly VND60 billion (), compared to VND42 trillion by market leader Viettel.

Vietnamobile had also proposed the provision of a new spectrum last year; as well as approval for 5G testing.

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