Mobile network services in vietnam

eople. In business, services is considered goods, they also have transactions with services like normal goods. In this article, I focus on researching mobile network services in Vietnam. Recently, mobile phone is one of the most necessary things for people in their life. Providers are also developing services to provide to people using mobile. The development of mobile network has brought benefits to both consumers and providers. And it influences to not only economy but social life. Now, Vietnam has many mobile network providers, they have competitions in embroiling customers. This study will help audiences understand more about mobile network services by many different forms. 2. Research Purposes Recently, the mobile network services are fast- growing in Vietnam. So this study will help everyone know more than about mobile network services. In this study, it will show 4 parts: to show the development of mobile network in Vietnam and its impacts, to help people know more about ways of mobile network business, to introduce the trends in providing services in the future and to find the attitude of people who are using services of providers. 3. Definitions of the Key Terms - Mobile network (cellular network): the facilities operated by a carrier for the purposes of providing public mobile telecommunications services ( - Service: in economics, service is understood as something which is similar to goods but it is immaterial ( The services in this study refer to business of mobile network in Vietnam. - Vietnam: the country has leading telecommunication sector in Southeast Asia ( 4. Significance of the Study In recent years, mobile telecommunication network in Vietnam is very fast- growing, it has brought many benefits to consumers. We can say that it is a potential market to develop business and they can earn quite many profits from this. Besides, there are many people who haven’t understood about mobile network services clearly. The findings of the study would be helpful to the providers to have a look about this and they can grasp suitable things for their own business strategies. It also help consumers to choose services properly. 5. Research Questions There are questions which were attached special importance in this research: Q1. What is the origin of mobile network? Q2. Who are the current main providers of mobile network in Vietnam? Q3. What are the advantages and disadvantages in the process of providing of mobile network services in Vietnam? Q4. What are the future trends of mobile network services? 6. Research Schedule The research is supervised by Mrs. Cinna Lee (MA), teacher of International Training Program (ITP), Banking Academy of Vietnam. It was started in June 11, 2010 and finished in July 30, 2010. 7. Research Structure For the objective to be achieved, the research will be structure as follows: The introduction is a foundation to develop the research. Literature review contain two parts: to show the history and development of mobile network in Vietnam and achievement of providers and evaluation of customers, it will help audience review and understand more clearly the previous researches about mobile network services in Vietnam. Methodology indicates methods and it will be helpful to introduce to make the research. The results and discussions show advantages, disadvantages, solutions to solve some problems and the trends of mobile network in Vietnam. Finally, the conclusion summarizes overall research. Chapter II. Literature Review I. History and Development of Mobile Network Services in Vietnam 1. The Origin of Mobile Network The mobile is a progressive inventor of human which marks an obvious advance in human civilization. The history of mobile network depends on history of mobile because they usually rely on features of mobile to advance suitable services. According to the post in forums about history of cell phones, the first mobile phone was used in Sweden by the Swedish police in 1946. The technology was connected to the mobile network and was distinctive of two way radio technology. The phone was not very practical, it was only able to make 6 phone calls before the car’s battery was drained. Until the early 1980s in Europe, they developed a mobile network is only used in some areas. Then in1982 it was standardized by the CEPT (European conference of Postal and Telecommunication Administrations) and created Group Special Mobile to use for the whole Europe (tech-faq.com). In Vietnam, the first mobile network provider was MobiFone, which started in 1993. And since then, mobile network services have been fast-growing and have brought many potentialities to develop economy of Vietnam. 2. The Development of Mobile Network Services The mobile and services have just been appearing over 30 years but in that period time they have great progresses. They contain steps to change technologies to make suitable to development of human. In the rostrum of 3G Vietnam, they brought the process of mobile network formation today. It consists of: The first step: 1G (the simple beginning) is stand for 1st Generation. It was the analog standard mobile phone , and used technology with 1G analog signal. It was introduced into the market in 1980s. Then the digital device appeared by using 2G technology and the digital wave. This second generation of 2G mobile network officially launched on the standard GMS (Global System for Mobile) in the Netherlands by implementing of the company Radiolinja (now it is a part of Elisa). In comparison with 1G, the 2G is much more modern and provides many functions to user more than 1G. So until now, the 2G is still used commodiously. The third is 2.5G which is a buffer step between 2G and 3G in wireless phone technology. Concept of 2.5G is used to describe the 2G mobile systems which is equipped with switching packet systems alongside traditional systems. While the concept of 2G and 3G are officially defined the concept of 2.5G is not so. This concept is only used for marketing purposes. The contemporary technology is 3G. It is the 3rd communicational technological generation. It allows data transfer both voice and non- voice data (data, email, instant messaging text, image, so on). The systems requires a 3G radio access network is absolutely different from the current 2G systems. In 3G services, video calling is often described as a focus of service development. Japan is the first country which is introduced 3G into the widely exploited commerce and they achieved successes. The success of 3G in Japan shows that the video technology is not a destructive application. It is really useful and accepted by satisfied ways, especially the young people (3gviet.vn) 3. Mobile Network Services Business in Vietnam Follows TPO in the article “ 15 years of mobile phones in Vietnam”, until now seventeen years have passed since the first mobile network in Vietnam (Mobifone) was put into operation, Vietnam‘s mobile information market has witnessed impressive development. Mobifone officially became operation in April, 1993. This network faced a lot of difficulties in the first 2 years because of lacking experiences and poor infrastructures. In 1995, Mobifone signed a business cooperation contact with Sweden’s Comvik Group to build and develop its network. Since then, Mobifone has grown powerfully thanks to cooperation, technologies and experiences transfer. A year later, the Vietnam Post and Telecommunications Corporation (VNPT) set up a broad to build the second mobile network named Vinaphone in 1996. And over one year later, Vinaphone was put in to operation in June, 1997. Then Vietnam had two mobile networks but most of the new services, policies and technologies originated from Mobifone. But both of them were under VNPT’s management, they had the same services and followed the same policies. The only difference between them was customer care services. In July 2003, S-Fone – the first CDMA- based (Code Division Multiple Access) mobile network in Vietnam, was inaugurated. In late 2004, Viettel Mobile, the third GMS-based mobile network, also became operational. From then till the end of 2006, Viettel Mobile was praised as a phenomenon in the mobile market, providing services at low charges. In this period (2004-2006), Viettel Mobile gained the highest growth rate mobile network. The significant factor contributing to Viettel ‘s success was the large gap between the charges of Viettel Mobile and those of Mobifone and Vinaphone. Moreover, both Vinaphone and Mobifone’s expansion were hindered by complicated formalities and procedures. Not allowed to reduce charges like Viettel, Vianphone and Mobifone focused on improving their services, technologies and solving the problems. The firm professionally invested in its trademark and imprinted itself on its client’s minds as a mobile network of the best quality. In 2006-2007, the mobile telecommunication market welcomed 2 more CDMA- based networks, HT-mobile and EVN Telecom. However the HT- mobile was not successful because they didn’t make any impression while EVN Telecom proved its position for the wireless fixed phone services only. In this period, the two leading network, Mobifone and Viettel, ran a fierce race. Viettel still maintained its growth rate and low charge advance. Mobifone, after solving problems associated with investment formalities, sped up the expansion of its network. And when the Ministry of Information and Communications made Mobifone the standard network for quality, the mobile market of Vietnam entered a new period- competing for quality. In early 2008, the market began eventful when the leadings GMS- based networks reduced their charges to the same level, which were reasonable for most clients. It is the first time mobile networks were competing on a fairly playground in term of charges and the biggest difference between them was service quality and trademark. In this time, CDMA-based networks were trying to find a way out, HT Mobile officially announced the death of its network to turn to GMS network. About EVN Telecom, it didn’t find a way to develop its services while S-Fone , despite its great effort, it couldn’t compete with others (TPO- 3c.com.vn) In July 2008, Beeline was operated, it was the famous mobile network in the work but in Vietnam, it was a new network. However, it was also quite successful in Vietnam mobile market with strategies: continually upgrade service quality and continually improve the quality of customer care services, create trust and respect for employees and business partners (beeline.vn). While the telecommunications market was being very eventful, but with the change HT Mobile ‘s look became Vietnam Mobile in April 2009, this market was stirred again. It has been conducting a campaign “to conquer” comprehensive with establishing distribution network with more than 10000 transactions over Vietnam. With the doing low charge strategy and didn’t limit the time to use, Vietnam Mobile was successful when they have a position in client’s minds (T.H.T- A.X- laodong.com). II. Achievements of Mobile Network Provider and Evaluations of Consumers 1. Achievements of Mobile Network Providers In recent years, providers have achieved remarkable results along with efforts. It opened a potential market to compete and it helped Vietnam’s economy become more advanced. It also brought advanced technologies to Vietnamese to widen knowledge to fall in line with the world. Founded in 1993, Mobifone has become the first business which exploited mobile communication services, marked the beginning of the mobile communication industry Vietnam. Besides disadvantages which Mobifone had to face the first days, it also made valuable results in its business. In October 2007, the Ministry of Information and Communications announced the result of its quality inspection of mobile network and Mobifone received most of the accolades. Notably, Mobifone’s voice quality reached 3.576- equal to the quality of fixed phone services ( follows TPO). The point of getting at Moifone was mainly the success rate of calls to Call Center- a very important part in the customer care services of mobile networks, showed the listen to customers. In this criterion, the network standing next Mobifone was Viettel, it is still quite far away (98.82% Mobifone and Viettel was 91.76% ). Till June2008, Mobifone was occupying No.1 in market share of mobile subscribers in Vietnam. Chart1: Figure of market share in Vietnam (till 1/2008- Phuong Mai-source:channelvn.net) No stranger to Vietnam consumers, Vinaphone is one of three biggest mobile networks in Vietnam. Pioneer in providing 3G services in Vietnam, is the only mobile network in Vietnam which joined the biggest mobile alliances in Asia. In 2009, it reached 27million subscribers and 20.519 billion revenue. In January 2010, in Hanoi, Vinaphone held a ceremony to receive the Second class Labor Medal ( Chau Anh- in source: Vnpt.com.vn). Till the end of 2006, Viettel emerged as a phenomenon in mobile market, providing the low charges services. In period 2004-2006, Viettel Mobile gained the highest growth rate among mobile network. Follows TPO, in the second half of 2007, though Viettel Mobile’s charges were lower than those of Mobifone, the latter network exceeded Viettel in number of new subscribers thank to higher service quality. They are three GMS-based mobile networks (Mobifone, Vinaphone and Viettel Mobile) which account for more than 90% of the market, are wholly owned by the state. In operation years, they contributed much for economy, made many achievements and occupied important positions in client’s minds. 2. Evaluations of Consumers about Mobile Network Services In previous of time, consumers cared about charges. They wanted cheap charges and they didn’t care about quality but later they had to review because of their advantages. But now, things are completely changed. The charges is still a important standard to evaluate provider but they care about quality more like voice quality , the rate of successfully established calls and qualitative services of customer support center. That’s why Mobifone is appreciated by customers. Besides, the clients also base on famous brands to use because it will be reliable. Customers also choose intelligent services which are provided by many different networks not to influence when one of networks has problems about blocked network or others. They appreciate customer care services because operations of new networks will promise severe competitions in embroiling customer. In 2010 all the networks have to try themselves utmost in improving service quality and customer care in competitions, and Mobifone has continued to have No.1 on the objectives of the test as well as comment about quality brand or not , we need to wait time to answer ( Trieu Tung-baodanang.vn). On other hand, the clients are very satisfied with some benefits and want the providers keep them like: every month promotion and plus money which is tantamount to the time the customers listened. It is a strategy to embroil customer of providers to gain their confidence. Chapter III. METHODOLOGY In this research, the writer delivered the survey to 60 students but there were 42 students in some universities to take part in this survey with19 males and 23 females in early 20s. The writer also used data in some techniques such as: questionnaire, observation, internet, and Phuong Mai’s chart in channelvn.net to review and had a look about mobile network services in Vietnam. Moreover, the writer also used the data which was collected to analysis by many ways like: comparison, contrast and widening the problems in the part “Results and Discussions”. It summarizes process of the survey about mobile networks services in Vietnam, brings out its impacts and solutions. And it would help both clients and businesses understand more about the development mobile network services in Vietnam. CHAPTER IV. RESULTS AND DISCUSSIONS 1. Advantages of Using Mobile Network Services Now, the mobile networks are not strange to Vietnamese. We can say that the mobile is one of necessary things in our life. Not only that, the mobile is also important to business because it is an instrument to communicate and trade. There were over 95% students in the survey who agree that they can’t lack of mobile. And the customers usually choose the famous brands to use such as: Mobifone, Viettel and Vinaphone. There were 100% students in the survey who are using one of three networks above. They just use other network as promotional telephone numbers to economize their money because other networks are cheaper. But they still use the main telephone numbers are one of that famous brands to avoid the problems of promotional SIM. That’s why providing services is very important to compete in the market of providers. Mobile network services also have many effects. For example:1. It helps people communicate with others, 2. It makes business easier in trade and finally 3. People can understand more about technologies through using mobile network services. The 1st effect accounts for 85.7%, the 2nd effect accounts for 12%, and the remaining accounts for 2.3%. May be the rate of 2nd effect will be higher when doing this survey by employees but surely, the rate of 1st effect still account for highest. In common, communication is the most important thing which people attach special importance. Chart2: Rate of advantages of mobile network services Besides, the users can relax with services which are provided. They seem quite satisfied with services. Providers also have caught promptly to provide services to have customer’s satisfies. The mobile is always used to send messengers and call most. In addition, other services also attract customers, especially teenagers and people in 20s. There are many services which are showed with many features according to the big events or the new trends: watching World Cup on mobile was provided by VNPT, Musik Talk- music background service that provided to customers of Mobile Phone, they can listen to music when they are calling other. They also provided some services about consulting scores, email, karaoke, ring tunes, messengers and so on. 2. Disadvantages and Solutions of Using Mobile Network Services Beside the advantages, also there are some problems when people use mobile network services. For example: 1. the customers receive too many advertisements or fraudulent messages, 2. customer care services are not good, 3. sometime, the customers were charged mistakenly. Among the students who did the survey, the percentage of 1st choice is highest which accounts for 76.2%. People who were charged mistakenly account for about 21.4%. The remaining has problems in customer care services. Chart3: Rate of disadvantages of mobile network services Some solutions also were brought out in survey: 1.The customers will change their networks when they encounter above problems. 2. The customers will inform providers of problems and ask them have to repair. 3. They will deem not to know. The first one accounts highest percentage with 81%. The second accounts for 4.8% and the third accounts 14.2% because they seem not to believe that their providers can solve their own problems or they see that they are not big problems which need to inform. In fact, to solve the problems, the providers used many methods such as: they give advices to clients not to believe advertisements which is not sent by switchboards, improve their professionalism. Moreover, they bring out some services with many benefits to embroil customer come back. We can’t negate that in process of providing services, the networks had problems considerable, but looking back, we also see remarkable efforts of providers in process of Vietnam renewal. 3. Future Trends of Mobile Network Services In recent years, mobile phone is one of the most necessary things to Vietnamese, especially the young people. It will promise many new things. Now, 3G is main choice which will be towards by consumers. In the future trends, they are trying to build successful 4G, it is called multimedia technology of the future mobile. 4G is considered an extension of the 3G cellular network. 4G is seemed as the ability to ensure services continuity with the different abilities to connect many types of wireless access network and the abilities to select the most appropriate wireless network to deliver services to users by an optimal way. All expectations are the fourth generation mobile communication network (4G) will emerge in about 2010 to 2015 as a super high speed wireless broadband. Besides, providers are advancing social network in mobile, making it more specialized, improving to personalize position services, and upgrading security. Moreover they are also finding the way to make “search algorithms” to bring the whole world in the cell phone. CHAPTER V. CONCLUSION Now, mobile phone became the most important thing to Vietnamese because of the fast-growing technology and economy. So the importance of mobile network services is evaluated very high. It had a part which is not small in habit of people, of course, it contains both advantages and disadvantages. But we can’t negate it is a big achievement in change the aspect of Vietnam in renewal period. This paper showed some aspects of mobile network services with the try of researcher. Believing that this research will help everyone to understand more about mobile network services. Because of limited time, this study has some limitations like data, language and knowledge of mobile network. So the next study will be more useful, more widely and better than this paper. References 1. According History of Cell phones (no date) from: 2. Follows TPO (Monday 14th April 2008) from: 3.Excerpt from posts in forum 3Gviet ( November 11, 2009) from: 4.Beeline Vietnam (no date) from: 5. T.H.T-A.X ( April 9, 2009) from: 6. Follows Vietnamnet (February 05, 2009) from: 7. Phuong Mai (August 11, 2008) from: 8. Chau Anh (January 19, 2010) from: 9.Viet Bao ( December 08, 2007) from: 10.Trieu Tung (March 12, 2010) from: 11. Follows dantri (no date) Blog congngheso from: APENDIX QUESTIONNAIRE FOR VIETNAM STUDENTS ABOUT MOBILE NETWORK SERVICES 1. Which mobile network are you using? A. Viettel B. Vinaphone C. Mobiphone D. Others 2. Do you think mobile network services are necessary? A. Yes B. No 3. Which mobile network service do you like using? A. Internet B. Music C. Video call D. Sending messengers and calling 4. Why are mobile network services important? A. Help to communicate with other people B. Make your business easier C. Understand more about technologies 5. What benefits do you want the providers keep? A. Every month promotion B. Plus money which is tantamount to the time you listened C. Send message to receive gifts 6. What is your problem when using mobile network? A. Have too many advertisements or fraudulent messages B. Customer care services are not good C. You were charged mistakenly 7. What are your solutions to improve the using mobile network problems? A. You change your mobile network B. You inform providers of problems and ask them have to repair C. You deem not to know 8. Can you evaluate your mobile network? A. Good B. Normal C. Bad Thanks for your kind cooperation! ACKNOWLEDGEMENTS In process of doing research, there are many difficulties. But the researcher received the help of many people to complete this study. I want to thank Mrs. Cinna who helped me so much in giving me opinions, instructing the steps to do project. I really thank my family who always support me during my study about the spirit and finance. I also thank my friends who helped me to give ideas and answer survey questions. Again thank you so much! ABSTRACT In renewal period, Vietnam has many noticeable advances and the mobile network services have a big part in this developing process about business and technology. This study will show aspects of mobile network to help everyone to understand about mobile network with parts: review the mobile network in recent years and discussion about advantages, disadvantages, solutions and the future trends of mobile network. This paper was carried out by survey and using data in techniques: observation, questionnaire, internet and chart to review, it would help readers have a look about mobile network. Reached results were summarized during the process of doing this paper, it showed that mobile network services in Vietnam still have shortcomings but it will promise to have many advances to develop the Vietnam mobile network in particular and Vietnam economy in general. The study was limited in narrow ranges of time, knowledge and language, so next time, the study will be carry out more closer than this one. KEY WORDS -MOBILE NETWORK -SERVICE -VIETNAM TABLE OF CONTENTS CONTENTS PAGE ACKNOWLEDGEMENT………………………………... i ABSTRACT……………………………………………….. ii TABLE OF CONTENTS…………………………………. iii LIST OF CHARTS……………………………………….. iv CHAPTER I. INTRODUCTION………………………… 1 1. Research Background………………………………………….. 1 2. Research Purposes……………………………………………... 1 3. Definitions of the Key Terms………………………………….. 1 4. Significance of the Study……………………………………… 2 5. Research Questions……………………………………………. 2 6. Research Schedule…………………………………………….. 2 7. Research Structure…………………………………………….. 2 CHAPTER II. LITERATURE REVIEW……………….. 3 I. History and Development of Mobile Network Services in Vietnam ………………………………………………… 3 1. The Origin of Mobile Network……………………………….. 3 2. The Development of Mobile Network services………………. 3 3. Mobile Network Business in Vietnam………………………... 4 II. Achievements of Mobile Network Providers and Evaluation of Consumers ……………………………………………………… 6 1. Achievements of Mobile Network Providers………………… 6 2. Evaluations of Consumers about Mobile Network Services ….. 8 CHAPTER III. RESEARCH MENTHODS……………. 9 CHAPTER IV. RESULTS AND DISCUSSIONS……… 9 1. Advantages of Using Mobile Network Services……………… 9 2. Disadvantages and Solutions of Using Mobile Network Services 10 3. Future Trends of Mobile Network Services ………………….. 11 CHAPTER V. CONCLUSION………………………….. 11 REFERENCE…………………………………………….. 12 Questionnaire for Vietnamese Students about Mobile Network Services 13 LIST OF CHARTS Chart1: Figure of market share in Vietnam (up to1/2008- Phuong Mai-source: channelvn.net). Chart2: Rate of advantages of mobile network services. Chart3: Rate of disadvantages of mobile network services ._.