Pioneer Marketing & Communications

3G soloists should sing from the same page
Update: 16-3-2009 
Despite the economic doldrums, Vietnam’s telecom sector is expected to enjoy impressive growth this year and the deployment of the third generation (3G) technology is set to bring about new opportunities for industry investors, as Carl-Henric Svanberg, Ericsson president and CEO, discussed with VIR during his visit to Vietnam last week.

Mr Carl-Henric Svanberg 
What prospect do you see for Vietnam’s telecommunications industry?

The mobile coverage density in Vietnam is about 50-55 per cent. So in the coming years, Vietnam will really develop when the coverage reaches 75-80 per cent. In the next two to three years, 2G networks will continue to develop as the newly launched 3G will at first provide active support for 2G. In addition, fixed networks will also further grow considering the massive need for broadband in Vietnam which gives rise to more expansion of DSL fixed broadband networks.

While broadband networks are growing at a rather slow pace in Vietnam, in the coming two to three years, this part of the market will soar to its peak as has been seen in other countries.

With regards to mobile networks, mobile broadband and internet will remain most vibrantly developing segments. As a big picture, the telecommunications industry can still make impressive growth in 2009 and I understand that in these days of economic recession, telecommunications can be regarded as the engine to push forward economic development to trade off for other sectors. I also learnt that the anticipated growth of telecommunications in Vietnam for 2009 is as high as 50 per cent, which is an optimistic number reflecting a firm belief in a vigorous and successful year of Vietnam’s telecommunications.

Why is the deployment of the 3G technology high on your agenda during this visit?

3G is in the news in Vietnam as the third and fourth quarters will be the time when Vietnamese carriers are expected to start rolling out 3G technology. Vietnam’s plan to launch 3G at this point has its positive side. Network operators have thoroughly reviewed their capacity and strategies in developing 3G. They can observe other operators who already offered 3G in the world to decide exactly where they want to go. The presence of major telecommunications companies in Vietnam with their rich experience base will provide the best consultation available for implementation.

We hope that this working visit will be the opportunity for Ericsson to share its experience with operators in Vietnam so that 3G can be launched successfully and effectively. We take this as a solid foundation for supplying the solutions they really need to guarantee flexibility in terms of scale, quality and economy.

How can Ericsson work with Vietnamese partners in 3G deployment?

In the first phase 3G is launched, we will keep up support for operators in taking their current 2G networks to the limit because that would maximise the return of investment and will be the main income source for them to operate and invest in the future. As Vietnamese carriers will for the first time launch 3G networks in 2009, we will accompany them in each phase of the transition process from 2G to 3G.

Currently, Ericsson has 50 per cent of the launched 3G networks all over the world as its reference. One of the advantages for Ericsson in the Vietnamese market is the close relations we have built with our customers over the years. Remarkably at this point, Ericsson equipment has been seen in all levels of telecommunication infrastructure in Vietnam.

The long-term dedication has created a competitive edge in business partnership typical to eastern culture and the real capacity for 2G and 3G technologies provide a western power. As Ericsson has had a long history of investing in research and development to take the lead in technology, we know exactly what the customers need and with our large variety of products, we will counsel them on how the products can be used best and with the longest term vision possible.

As it will be the first time 3G will make a splash in Vietnam, how should local carriers be prepared for its successful deployment?

Network operators need to offer different plan packages to customers to give them time to understand the benefits and services that come with 3G. Broadband internet is one of the most easily accessible services to the customers that can help them be familiar with 3G while remaining profitable to the service providers. With 3G in place, operators can cooperate with content service providers to offer diversified information to subscribers suitable to their liking. 3G brings about a wide range of services that can help make life easier such as mobile-based payment and health check-ups.

The possibility of network operators working together to make full use of 3G licences is real since a partnership for shared use of resources is a practical solution.

Link: http://www.vir.com.vn/Client/VIR/index.asp?url=content.asp&doc=18375