Improving the competitiveness in providing mobile communication services of Vietnam''s telecommunications companies

In terms of new business and the environment, increasingly fierce competition requires companies providing mobile communication services in Vietnam market to operate non-stop innovation,

INTRODUCTION

1 The necessity of research

In market economies, the trend of globalization and international economic

integration, competition among enterprises are increasing In such conditions, the

competitiveness manifests fight to ensure survival and development of products,

companies and national

Vietnam is ongoing innovation policies towards liberalization of the economy

Vietnam's telecom market will be large fluctuations in the direction of freer, more open

in the future According integration roadmap there will have many mobile

communication company of many different economic sectors launched mobile

communication, many foreign telecom operators participate in the mobile

communication market in Vietnam by different ways to join Never the mobile

communication market has developed strongly as the last few years and the level of

competition between service providers on the market is becoming increasingly

In terms of new business and the environment, increasingly fierce competition

requires companies providing mobile communication services in Vietnam market to

operate non-stop innovation, enhance competitiveness, improve his high position in the

market in order to maintain market share and compete with not only domestic

companies but also to compete with the foreign companies will participate in providing

mobile communication services in Vietnam in the future near future

Stemming from the above issues, the topic "Improving the competitiveness in

providing mobile communication services of Vietnam's telecommunications

companies" is meaningful practical reasoning and practical

2 The objective of the study

- Clarify some theoretical issues of competitiveness in the provision of mobile

communication services, the need to improve competitiveness in the provision of

mobile communication services of telecommunications companies

- Analyze and evaluate the competitiveness of the state providing mobile

communication services of a telecom company in Vietnam, comparing the strengths

and weaknesses of the provision of services between the companies together and find

out the problems to be solved in order to improve their competitiveness

- Perspective and propose some solutions and recommendations to improve

2 competitiveness in the provision of mobile communication services of Vietnam telecommunication company

3 Object and scope of research

Study subjects are competitive in providing mobile communication services of the company through considering the evaluation criteria and the factors affecting competitiveness in the provision of mobile communication services of the telecommunications company

Scope of research: focus on analysis of evaluation criteria and factors affecting the competitiveness of service providers 3 mobile information provider of mobile communication services in Vietnam's largest (MobiFone, VinaPhone, Viettel), taking into consideration certain extent with other companies Baseline study period ranged from 2005 to 2012

4 Research Methodology

Topics using both qualitative research methods and quantitative research methods

- Quantitative research: topics using statistics and surveys in the field of mobile communication, such as revenue, number of subscribers, number of base stations, the service dealer, market services and market growth analysis phan.vv to evaluate the competitiveness of the companies selected studies In addition, subjects were 972 survey interviews clients are using mobile information services of the company and consulted a number of experts to study the criteria for evaluating the competitiveness of supply service companies

- Qualitative research: topic analysis methods using case studies 3 service providers VinaPhone, MobiFone and Viettel to shift research and development competitiveness in the supply of products / services the company

5 New contributions of the thesis

- Clarifying the concept of competitiveness of the company in providing mobile communication services, the general criteria applied to assess the competitiveness of businesses to determine the criteria for evaluating the competitiveness of businesses providing services in mobile communication

- Assessment of environmental change telecommunications industry, in the field of mobile communication from monopoly to competition

- Assess the strengths and weaknesses of the competitiveness of the three major companies operating in the field of providing mobile communication services in

3 Vietnam (VinaPhone, MobiFone, Viettel) from two different aspects: assessment of

customers to use mobile communication services and evaluate the intrinsic capacity of

the company providing mobile communication services

- Assess opportunities and challenges for companies in the context of removal

monopoly and opening the telecommunications market, provide direction and solutions

to improve competitiveness in the provision of mobile communication services of the

telecommunications company Vietnam

6 Dissertation Structure

In addition to the Preamble, Conclusion, References list, Annex, the thesis

includes four chapters

CHAPTER 1: OVERVIEW OF RESEARCH RELATED TOPICS

THESIS 1.1 Some of the study abroad

So far, the theory of competitiveness on world development trends in many

different schools and many different approaches

Porter's Five Forces model was first published in the Harvard Business Review

magazine in 1979 to learn content elements to make a profit in business This model,

often called the "Porter's Five Forces", is considered to be useful tools to understand

and effective source profits More importantly, this model provides competitive

strategies to maintain or increase company profits

In 1990, M Porter announced his "Competitive Advantage of Nations" This book is

Porter research in ten countries leading economy The book offers the first theory of

competitiveness based on the causes of productivity, whereby companies compete with

each other Porter shows how traditional comparative advantages such as natural resources

and cheap labor was no longer a source of prosperity The book also introduces the

"diamond" - a way to understand the competitive position of a country (or location) in the

current global competition and is an integral part of economic thinking international

business

In the telecommunications sector, a number of studies as follows:

- Jean-Jacques Laffont and Jean Terole, Compatition in Telecommunications,

Massachusetts Intitute of Technology In this book, the authors provide theoretical

4 model based on the assumption that the natural monopoly of the telecommunications industry no longer reflects reality

- Feng Li and Jason Whalley, Deconstruction of the telecommunications industry:

from value chains to value networks, Telecommunications Policy In this study, the

authors conclude that some of the current changes in the telecommunications industry

is very progressive, and all companies need to reassess strategies and their market position and the difficult decision to go forward

1.2 A number of research projects in Vietnam

- In 2004, Tran Van Tung, author of the book "Competing economic and national

competitive advantage and competitive strategy of the company" issues mentioned in

economic competition, competitive advantage analysis of national strategy and recommendations for companies competing in the Vietnam period is gradually integrating world economy

- In 2006, Vu Trong Lam published the book "Raising the competitiveness of

companies in the process of international economic integration." In this work, the

authors have codified some notion of the competitiveness of the company in the country experience analyzing and improving international competitiveness of the company situation analysis and competitive environment the legal framework of competition in Vietnam

Particularly mobile telecommunications sector, in recent years a number of research projects are as follows:

- In 2006, Prof Bui Xuan Feng has published the book "Managing

telecommunications business towards economic integration" After referring the matter

to business and general business administration telecommunications field telecommunications business administration, the author refers to a number of theories

on competition and competitiveness in the field telecommunications and propose some solutions in order to improve competitiveness for telcos

- In 2007, Le Ngoc Minh in economics doctoral thesis "Development of the

company business business mobile communication services in Vietnam" presents the

theoretical development of the business of the company services of mobile communication, situational analysis and set the direction and development of business solutions for the company's business mobile communication services in Vietnam

- In 2012, graduate student Tran Thi Anh Thu defended his doctoral thesis

economy "Enhancing Competitiveness of Telecommunications Corporation Vietnam in

terms of Vietnam is a member of the World Trade Organization" In this work, the

author has pointed out the rationale for enhancing the competitiveness of companies,

real state enhancement of competitiveness of the Vietnam Posts and

Telecommunications and the solution for this problem

1.3 Conclusions drawn from the literature review

1.3.1 The consensus view of competition in the provision of mobile

communication services of telecommunications companies

- In the theoretical framework of research: most previous studies and analysis

using two models are studied diamond pattern and five forces model of Michael E

Competitive Porter The model has put the company in a particular industry

environment, analyzing the factors affecting the competitiveness of companies in the

provision of services and the impact of environmental competitiveness of the company

- Regarding research methods: previous studies have combined both qualitative

research methods and quantitative

- Regarding the solution: Towards improved criteria for measuring the

competitiveness of the telecommunications company providing services in mobile

communications and proposals to create a healthy competitive environment

1.3.2 The point to further research on competition in the provision of mobile

communication services of telecommunications companies

- Criteria for evaluating competitiveness in providing mobile communication

services of telecommunications companies

- The transformation of telecommunications environments, especially mobile

communications sector from monopoly to competition and especially after Vietnam

joined the WTO

- The role of government in enhancing the competitiveness of Vietnam's telecom

companies, particularly in the provision of mobile communication services

- The response and adaptation of telecom companies in Vietnam with the change

of environment

- Orientations and measures to improve competitiveness in the provision of mobile

communication services of the telecommunication company Vietnam

6

CHAPTER 2: THEORETICAL BACKGROUND ON COMPETITIVENESS IN PROVIDING SERVICES OF MOBILE COMMUNICATION TELECOMMUNICATIONS ENTERPRISES 2.1 Characteristics of mobile communication services and service suppliers of mobile communication

2.1.1 Characteristics of mobile communication services

- The quality of mobile communications services depends on many factors

- Mobile information services have high mobility

- Mobile communication service with enhanced security

- Charges mobile communication compared with other telecommunications services

- Product of mobile communication services nature areas

2.1.2 Characteristics of provide information services for mobile telecommunications company

- Costs of major capital investments

- Technology is leading

- The level of competition in the sector

- Humans play an important role

- The process of service consumption associated with the production process

- The process of transmitting information is the process of establishing multi-dimensional relationship

- Timeliness of mobile communication services

2.2 Competitiveness in providing mobile communication services

2.2.1 Competitiveness

Competitiveness is the possibility that businesses can maintain their position in the long-term and sustainable competitive market by creating products / services are of high quality, reasonable price, to sell / supply and convenience obtained desired rate

2.2.2 Competitiveness in providing mobile communication services

telecommunications companies is the ability of telecommunications companies to maintain their position in the long-term and sustainable competitive market by creating

7 the mobile communication services with consistent quality, reasonable rates, providing

a convenient way and earned a profit target

2.2.3 The need and the role of enhancing competitiveness in providing mobile

communication services of telecommunications companies

For companies providing mobile communication services, competitive creative

opportunities and pressures Therefore, to improve competitiveness in providing

information services and mobile telecommunications company in the market economy

now has an active role:

First, the capacity to create competitive pressure on telecom companies must

constantly search for creativity, improved production methods and management

organization providing services, innovative technologies, applied scientific and

technical progress, developing new services, increase productivity, lower the cost of

services

Second, for consumers, improving competitiveness creates a continuous pressure

on prices, forcing companies to lower service charges for service to sell quickly

Third, for the economy, improving the competitiveness of companies enlivened

the economy, promote growth and create pressure on companies and industries to use

resources effectively resources, thereby contributing to overall saving of resources in

the economy

Fourth, foreign relations, enhance the competitiveness of the company promote

market expansion in the region and the world, looking for new markets, joint ventures

with foreign companies, through heavily involved in the division of labor and

international economic cooperation, enhanced exchanges of capital, labor, science and

technology with other countries in the world

2.3 Criteria for evaluating competitiveness in providing mobile communication

services of telecommunications companies

The different ways to assess the competitiveness of businesses around the

following criteria: market share, revenue, and profit margins, financial management

practices, company reputation, the the management team and skilled work force,

quality, price, service diversification, distribution systems Applying the above

criteria, the proposed thesis competency assessment criteria competition in the

provision of mobile communication services of telecommunications companies,

including:

8

- Quality of products / services

- Charges for product / service

- The system of distribution of products / services

- The difference of products / services

- Information and promotion

- Brand and reputation of the product / service

2.4 The factors affecting the competitiveness of service providers of mobile information Telcos

2.4.1 External factors

2.4.1.1 The elements of macro environment

- Political Environment - law: including the statutes, rules and activities of the state agencies that affect the company's operations

- Cultural environment - social factors including population and income, culture and environment

- Economic Environment: including economic growth, national economic policy and the business cycle

- Environmental technology: The process of technological innovation is considered

as the process of system development, is the time to turn new ideas into products or services can be sold on the market

- The natural environment: including natural resources and economic infrastructure

- International Environment: trends of globalization, trade liberalization

2.4.1.2 Factors in the environment sector

- Pressure of providers: the number and size of suppliers, the ability to replace the product / service providers, information providers

- Pressure from customers: the control through competition in a purchase decision

- Competitive pressure from potential rivals: depends on the attractiveness of the industry, the barriers to entry

- Competitive pressures from substitute products: the ability to meet the needs of similar products / services current

- Competitive pressure from existing competitors: industry conditions, the structure of the industry, the barriers to retreat

2.4.2 Internal factors

The internal factors are the factors arising from within the enterprise, affecting the

consolidation and improve the competitiveness of enterprises, such as:

- Financial capacity: the financial situation of the company shows the company's

strength in competing

- Production capacity: the ability to create products / services are of high quality,

low price and production scale to meet the needs of the market

- Human resources: people is an important factor determining the existence and

development of the company

- Marketing: system sales and marketing activities deliver products / services to

the customer, the best meet customer needs

- Activities Research and Development plays an important role in the development

and application of new technologies in time to create a competitive advantage in the

marketplace

- Organizational capacity and corporate governance: the combined efforts of the

common man in the organization and better use of the wealth of the organization to

achieve the organization's overall goals and objectives of each people wisely and most

effectively

2.5 Experience enhanced competitiveness in the provision of mobile

communication services in several countries around the world

On the basis of experience introducing enhanced competitiveness of the Korean

telecommunications company, and China, the thesis has identified a number of lessons

reference to Vietnam telecommunications company providing services in the mobile

That is:

Firstly: Improving the quality of service and customer service

Secondly organization management model flexible and science

Thirdly: Increase investment in research and development

Fourth: Update, technological innovation

Fifthly: Construction company culture distinctive

Sixthly: Having strategic market development, proper customer

10

TELECOMMUNICATIONS COMPANY 3.1 Overview of the market and the companies providing mobile communication services in Vietnam

3.1.1 Overview of market development

1993, with the introduction of the first mobile networks - MobiFone, Vietnam's mobile market is formed VMS - MobiFone choose GSM technology In turn, then, the following mobile network launched as VinaPhone (1997), Viettel (2004) also chose GSM technology Even as HT Mobile after some time pursuing CDMA technology as

S - Fone to finally switch to GSM with a new name Vietnamobile The market shift from monopoly to competition Besides, customers also demand continued to increase Initially only the conventional voice services, short messaging, multimedia messaging, And now, mobile data services are fast growing trend

It can be said, competition was quite exciting on the telecommunications market

in Vietnam with many new service providers and policy rates more reasonable, more attractive to customers

3.1.2 Overview of companies providing mobile communication services in Vietnam

- Stage appearance (1993-1998): In 1993, the network launched MobiFone uses

GSM technology and service providers to deploy mobile communications in May 8/1993 in Hanoi, HCM City in 1994 and continues to expand across the country

In 1996, Vinaphone opened and began providing services The agency's management is Vinaphone Telecom Services Company (GPC), is a 100 % owned company of VNPT investment and accounting mechanisms depend VNPT

- Transition period (1998 - 2001): In 2000, the General Post Office Vishipel

allows setting satellite earth stations - TTDD Inmarsat International and licensed to provide Inmarsat services But so far, the company has not officially active

- From 2001: In Vietnam, the market for mobile communication services has

made the company to join the business as: Saigon Postel, Viettel, EVN, HTMobile

3.1.3 Overview of the competition in providing information services and mobile telecommunications company Vietnam

The following table shows the change of the share company providing mobile

11 communication services in Vietnam in the 2005-2012 period:

Table 3.1: Market share and market share growth of the mobile network in Vietnam

during 2005-2012

Unit: %

networks Year

Market

share +/- %

Market share +/- %

Market share +/- %

Market share

2011 17,9 -11,21 -38,51 30,07 1,36 4,74 40,45 3,73 10,16 11,58

2012 18,45 0,55 3,07 30 -0,07 -0,23 40 -0,45 -1,11 11,55

Source: [3]

MobiFone market share almost no variation in the years from 2006-2010

However, between 2011 and 2010 with the spikes, the market share in 2011 decreased

11.21 %, down 38.51 %, respectively compared to 2010 In 2012, the market share of

MobiFone have increased but not significantly, increased by 0.55 % market share (up

3.07 % respectively)

Market share declined most Vinaphone In 2006, the net loss of 16 %

(corresponding to 33 % loss of market share compared to 2005) However, the last 3

years, the market share of Vinaphone continuously increasing: in 2009 increased 6 %, 2

% in 2010 and 2011 increased by 1.36 % To 2012, VinaPhone has been a slight

decrease in market share, lost 0.07 %

Strong rise in the Viettel network In 2005, when a new entry is more than 1 year,

this network only accounts for 11 % market share In 2006, Viettel rising to 30 %

market share In recent years, the pace of growth has slowed Viettel However, Viettel

is the biggest network in the market; VinaPhone is the second largest operator with 30

% and MobiFone ranked 3rd with 18.45 % market share The only network remaining

11.55 % Thus, the largest company in the market including: company information

VMS, telecommunications company Vinaphone and military telecom company Viettel

12

3.2 The internal factors affecting competitiveness in the provision of mobile communication services of the Vietnam telecommunication company

Table 3.3: Table assess the intrinsic capacity of Viettel

Strengths Weakness

- The culture of quality

- Large market

- Resources for young and dynamic

- Good corporate image

- Services and Distribution

- New Products

- Good CEO

- Competitive service rates

- Field TTDD Party and State have been identified "priority development", which is a favorable condition for the renewal and development of the company

- Vietnam is considered as a potential market, the pace of economic growth, population

This is a big advantage for companies operating in the telecommunications sector in general and in particular Viettel

- Viettel Telecom network covering all provinces and become providers of telecommunications services and the nation's largest growing brand

- The financial activities of the company are relatively healthy and transparent

- The company has built a company culture solidarity, overcoming difficulties and propose innovative solutions to accomplish tasks

- The investment is concerned, but despite a lack of uniformity has led to certain difficulties in operating the network

- The economic crisis reduced demand for the company's services

- Quality of service is limited

segmentation unclear

- Parts weak financial management

Table 3.5: Table assess the intrinsic capacity of VinaPhone

Strengths Weakness

- Business major, long-standing, familiar image, prestige

- Available traditional customers Direct contact with customers to quickly grasp the needs and tastes of customers

- The advantage of receiving modern technology, offering new services, diversified and high quality

- Network infrastructure both large national backbone network and local access networks Network-wide delivery service

- There are good international cooperation

- Our team of experienced workers, solidarity possible

- Often a pioneer in offering new services to attract attention and customers

- Quality of current services better than competitors

- Diversified services and advantages in providing full service, one-stop shop for customers, satisfy customer needs large (private network settings)

- The bloated management structure, large-scale, dependent accounting inflexible

- The quality of a number of low-quality services

- The investment costs of large infrastructure network Web development by administrative area, spreading wasteful, difficult to upgrade

- Charges for some services Charging method less attractive customers

- Sales cumbersome procedure

- Limited investment for the advertising, promotion Advertising forms less attractive

- Not enough attention to market research, competitor analysis No business strategies to adapt quickly to market changes

- This type of service is not much value, service poor information content

- Awareness and business experience in the limited market mechanisms

- Financial strength, strong funding of organizations

and individuals at home and abroad

- Large labor force, lack of high- level experts in economics and engineering

Table 3.8: Table assess the intrinsic capacity of MobiFone

Strengths Weakness

- Telecommunication network system large

- The distribution system is well organized

- The level of advanced technology

- Strong financial position

- High-level management, advanced management technology

- Quality of service possible

- Weak network system in the remote

- Higher rates than competitors

- Not focused on market development areas and remote

3.3 Rating competitiveness in providing mobile communication services of Vietnam

telecommunications company through client interviews investigation

3.3.1 Research Methodology

After comparing, for comparison, that the author of the Parasuraman SERVQUAL

scale and colleagues have similarities with six evaluation criteria competitiveness in the

provision of mobile communication services mentioned above SERVQUAL Scale

consists of 10 components: (1) Tangible Media, (2) Trust, (3) Response, (4) Capacity

serving, (5) Access, (6) India need; (7) Information, (8) Trust, (9) Safety; (10)

Understanding

Figure 3.8: SERVQUAL Model

Source: [47] [48]

Although the model is only assess the quality of services but this scale covering

almost every aspect of the service In addition, the competitiveness of enterprises in the

14 supply of power is reflected in the loyalty of customers now Model of customer loyalty mobile communication services in Vietnam have been two German authors on America, Bui Nguyen Hung proposed

Figure 3.9: Model of the customer loyalty of mobile communication services in Vietnam

Source: [23]

From this model, the authors have given the scale of customer loyalty in the use of mobile communication services of telecommunications companies in Vietnam Combining these two scales together with the National Technical Regulation on quality phone service over mobile network communications ground (NTR 36:2011 / MIC), the authors give scale to assess the capacity addition competition in the provision of mobile communication services of telecommunication companies Then, the author has developed questionnaires, conducting surveys and collected 972 questionnaires

3.3.2 Rating competitiveness in providing information services and mobile telecommunications company Vietnam

3.3.2.1 Quality of service

Chart pe rce nta ge of customer evaluation of service quality

0,00%

20,00%

40,00%

60,00%

80,00%

100,00%

120,00%

Scale

Totally disagree Disagree Neutral

A gree Totally agree

Figure 3.12: Chart percentage of customer evaluation of service quality

Source: survey data

In 2011, the Department of Quality Management of ICT MIC has officially

LOYAL

The call quality Price structure Value Added Services

Service

Loss New Resilience

New Joining The attractiveness

of other network

Customer Relations

15 announced the results of testing the quality of the service in 2011 mobile

telecommunication network of 3 ground Viettel, MobiFone and VinaPhone

Table 3:11: The results measure the quality of telephone service in the mobile

telecommunication network ground Vinaphone, MobiFone and Viettel 2011

3 Voice quality (voice quality point average) ≥ 3 points 3,80 points 3,64 points 3,94 points

4 Accuracy burn rate:

- The rate of talktime charges were recorded

7 Complaints about the quality of customer service (the customer complaints nai/100 / 3

months)

8 Feedback of customer complaints (complaints ratio reply in writing within 48 hours from the

time of receiving the complaint)

9 Customer support services:

- Time to provide customer service support by

24 hours a day

24 hours a day

24 hours a day

- Percentage of calls to customer service support

and accounting for successful circuit receives

signals of telephone operators answer in 60

seconds

Source: [20]

3.3.2.2 Charges for services

Chart review of rate contract customers on service charges

0,00%

20,00%

60,00%

80,00%

100,00%

Scale

Totally disagree Disagree Neutral Agree Totally agree

Figure 3:16: Chart review of rate contract customers on service charges

Source: survey data

16

Chart of the assessm ent rate prepaid custom ers on service charges

0,00%

50,00%

100,00%

150,00%

Scale

Disagree Neutral Agree Totally agree

Figure 3:20: Chart of the assessment rate prepaid customers on service charges

Source: survey data

3.3.2.3 Distribution system service

Chart percentage of customers rated the service distribution

system

0,00%

50,00%

100,00%

150,00%

Scale

Totally disagree Disagree Neutral Agree Totally agree

Figure 3:24: Chart percentage of customers rated the service distribution system

Source: survey data

3.3.2.4 The services differentiated

Chart percentage of customer evaluation of service differentiation

0,00%

20,00%

40,00%

80,00%

100,00%

120,00%

Scale

Disagree Neutral Agree Totally agree

Figure 3:28: Chart percentage of customer evaluation of service differentiation

Source: survey data

In fact, the authors also studied, comparing the network's service pack 3 was investigated and the following summary:

Table 3:16: The service pack of Viettel, Mobifone and Vinaphone to 05/2012

Sea+

Economy

Mobicard Mobi365

Vinacard Vina Text Tomato

Sinh viên

Mobi 4U MobiQ

Vina Daily Vinaxtra

Hi School MobiZone Vina365

Prepaid

-

- Basic +

-

- MobiGold

TalkEZ EZCom VinaPhone

Postpaid

Family VIP Corporate

-

-

Mbusiness Mfriend Mhome

-

-

iTouch EZCom VIP Colleague Family

Source: [21] [24] [27]

Results in the table above shows, the network has Vinaphone package for customers

to use the most, and No 2 is Viettel ranked No 3 in the final MobiFone company

However, considering the diversity of the services Vinaphone head but beware of the

uniqueness and effectiveness of the services they have superior MobiFone 2 other

companies Overall, customer reviews are correct when the network is too small to

supply the package and market the unique differences of the package is less

3.3.2.5 Information and promotion

Chart pe rce ntage of cus tom e r e valuation of inform ation and

prom otion of the ne tw ork

0,00%

20,00%

60,00%

100,00%

Scale

Totally disagree Disagree Neutral Agree Totally agree

Figure 3:32: Chart percentage of customer evaluation of information and promotion of

the network

Source: survey data

18 3.3.2.6 Services brand and reputation of the company

Chart pe rce ntage of cus tom er e valuation of brand and reputation VinaPhone , M obiFone and Vie tte l in s e rvice

provis ion

0,00%

50,00%

100,00%

Scale

Disagree Neutral Agree Totally agree

Figure 3:36: Chart percentage of customer evaluation of brand and reputation

VinaPhone, MobiFone and Viettel in service provision

Source: survey data

Besides the synthesis and analysis of evaluation criteria competitiveness in providing public services of all three companies, the authors also have separate individual companies and general assessment of client capacity competition in the supply of each company diich Since then, with the evaluation board competitiveness in providing mobile communication services of each company as follows:

Table 3:20: Competitiveness in providing mobile communication services

MobiFone, VinaPhone and Viettel on customer reviews

Unit: Point

Charges for services: postpaid 1,517 1,867 1,085 VinaPhone

prepaid 2,578 2,093 3,119 Viettel Distribution system service 3,658 3,678 3,828 Viettel The differentiated services 3,500 3,233 3,402 MobiFone Information and promotion 3,787 3,644 3,745 MobiFone Brand and reputation services 3,879 3,833 3,970 Viettel

Source: survey data

In general, the evaluation of our customers, the competitiveness of the three services company providing leading mobile communications market Vietnam is relatively high The evaluation criteria of companies do not differ significantly and are over 3 points Private service charges indicator reached a low point and there is a

19 significant difference: the postpaid service charges, but VinaPhone highest scores but

lower than 2 points, while the rate prepaid service, Viettel leads first with a score

greater than 3

However, in order to improve their competitiveness, companies need to pay

attention to issues such as: (1) Make sure the conversation is the customer's call being

dropped circuit, (2) Resolve rapid customer complaints, (3) Solving customer

complaints to the situation, logical, (4) Quick fix when communications failures; (5)

Reduce the cost of subscription month for postpaid subscribers; (6) reduced call costs,

(7) Increase in promotions, discounts for postpaid subscribers, (8) freight invoice report

monthly postpaid subscribers need clear, accurate, (9) for prepaid subscribers, the

operator call charges to debit the customer's exact; (10) process and procedures for

transfer of services to ease, simpler; (11) Keep your balance in the customer account

type conversion services; (12) Raising the level of tellers; (13) sales skills Training for

tellers; (14) Make clear the difference between the types of services; (15) Provide

services to meet customer requirements; (16) Provide services of legacy good

characteristics, preferred customers, choice, (17) Creation of special services to meet

the different market segments, (18) Diversification of services of the company (19)

provide books, beautiful pictures introduction services, eye catching, (20) Get the

customer's interests in mind is that the supply of services

3.4 Overall evaluation of the competitiveness of Vietnam telecommunications

company providing services in mobile communication

3.4.1 Strengths

- Scale and network coverage increasingly broad and deep

- Along with the promotion of installing additional base stations and coverage,

companies providing mobile communication services has not stopped competing,

racing boost subscriber growth

- Flexible tariff policy, with diverse services and customer oriented The telecom

companies are scrambling to reduce rates to entice customers and develop new

customers

- The telecommunications company also continuously launched many different

packages to best meet customer needs

- Customer care is increasingly being emphasized The customer care is done in 3

phases: before, during and after sale

20

3.4.2 Weakness

- The management of State for telecommunications companies that are insufficient

- The three telecommunications companies are state-owned enterprises, so when making the investment, expanding foreign often time consuming and procedures for approval, reports state agency in charge

- The company growth and uneven development Viettel is the speed of the company's largest development subscribers with wide coverage and the deepest

- Quality of service is not stable

- Telecommunications market grows too hot, the telecommunications companies are racing to increase subscribers, subscriptions run while investing for the network infrastructure has not kept pace leading to congestion still occurs

3.4.3 Cause

- Due to the nature of the field of mobile communication: characteristics provide mobile communication services of the company depends on the residential status of the economy

- The management mechanism is still insufficient: all three major companies providing mobile communication services above the current active form of 100 % state-owned, so the investment management, cost Government charges lead to difficulties for companies active in the development and market expansion

- Routine use of telecommunications services, internet in Vietnam is increasing but still low

- The company imbalance in strategic long- term business development: expression of growth in the market share gap and large fluctuations

- The analysis and forecasting of the company is not good, is the cause of the decision of the board of the company is not close to the real situation of the market

- There is no solution to increase service revenues explicitly: most, businesses are not out of the problem subscriber should develop long -term strategies for development services have not been paying attention

- The staff and employees of the company have not been trained in all copies and

synchronize the various local