THE BUSINESS STRATEGY AND DEVELOP THE MOBILE INFORMATION NETWORK OF EVN TELECOM COMPANY

FORM THE BUSINESS STRATEGY AND DEVELOP THE MOBILE INFORMATION NETWORK OF EVN TELECOM COMPANY... LIST OF FIGURES, GRAPHSFigure 1.1: Strategic business of administration model – Feedback i

FORM THE BUSINESS STRATEGY AND DEVELOP THE MOBILE INFORMATION NETWORK OF EVN TELECOM COMPANY

TABLE OF CONTENTS

TABLE OF CONTENTS 2

LIST OF ABBREVIATIONS 6

LIST OF TABLES 7

LIST OF FIGURES, GRAPHS 8

PART 1: INTRODUCTION 9

1.2- GOAL OF RESEARCH 10

1.3 METHOD OF RESEARCH 10

1.4 SCOPE OF RESEARCH 10

1.5 TOPIC STRUCTURE 10

PART 2: CONTENTS 12

CHAPTER 1: GENERAL REASONING OF PLANNING A BUSINESS STRATEGY 12

1.1 BUSINESS STRATEGY OVERVIEW 12

1.1.2 Specific meaning of Business strategy 13

1.1.3 The necessary of Company Business strategy 14

1.1.3.2 Non financial benefit 14

1.2 BUILDING AND CHOOSING THE COMPANY BUSINESS STRATEGY 14

1.2.1 Process of Business strategy 14

1.2.1.1 Phase of Forming strategy 15

1.2.1.2 Phase of performing strategy 15

1.2.1.3 Phase of evaluating strategy 16

1.2.2.1 Factors of Business environment 18

1.2.2.2 Operation environmen 21

1.2.2.3 Internal environment 26

1.2.2.2 Analyzing business environment 28

1.2.3 Some evaluation model 30

1.2.3.1 Peripheral factor evaluating matrix 30

1.2.3.2 BCG Matrix 31

1.2.3.3 HOPER Matrix 32

1.2.3.4 SWOT Matrix 32

CHAPTER 2: CONDITON OF PRODUCTION - COMMERCE OPERATION AND STRATEGY PLANNING OF EVN TELECOM 34

2.1- SUMMARY OF EVN TELECOM 34

2.1.1 Formation and development process of EVN TELECOM (EVN Telecom) 34

2.1.2 Function, mission and organizational structure of EVN TELECOM 34

2.1.2.1 Function and mission 34

2.1.2.2 Organizing structure 36

2.1.2.3 Manufacturing organizing structure 40

2.1.3 Technical specification 44

2.1.4 Labor specification 45

2.1.5 Production and business situation in recent years 45

2.1.5.1 Revenue 45

2.1.5.2 Result of production and business 47

2.2 CONDITION OF PRODUCTION - COMMERCE OPERATION AND STRATEGY

PLANNING OF EVN TELECOM 49

2.2.1 Condition of plan performance 49

2.2.1.1 Difficulties 52

2.2.1.2 Advantages 53

2.2.1.3 Problems 53

2.2.1.4 Reason of problems 54

2.2.2 Real situation of EVN Telecom business strategy 54

2.2.2.1 Target of subscriber development 55

2.2.2.2 Revenue target 55

2.2.2.3 Target customers 56

2.2.2.4 Evaluate current business strategy 60

CHAPTER 3: SOLUTION OF BUILDING BUSINESS STRATEGY AND DEVELOPING MOBILE INFORMATION NETWORK OF EVN TELECOM 62

3.1 GENERAL OF VIET NAM TELECOMMUNICATION 62

3.1.1 Vietnamese economy 62

3.1.2 Market forces 63

3.1.2.1 Telecommunication expenditure 63

3.2 PROPOSE ON COMPLETING BUSINESS STRATEGY IN THE NEXT PHASE OF EVN TELECOM 66

3.2.1 General solutions 67

3.2.1.1 Strengthen market study activities 67

3.2.1.3 Consolidate and improve the business strategy process 69

3.2.2 Specific solutions 72

3.2.2.1 A new telecommunication world 72

3.2.2.2 Company target in developing the mobile communication network 73 3.2.2.3 Propose about the market 74

3.2.2.4 The imagine and position of company 74

3.2.2.5 Telecommunication network 75

3.2.2.6 Prices 75

3.2.2.7 Solution for distribution channel 75

3.2.2.8 Advertisement and promotion 76

3.2.2.9 Customer caring 76

3.2.3 Apply strategic theory to build and choose the business strategy of EVN TELECOM 77

3.2.3.1 Using SWOT matrix 78

3.2.3.2 Forming IFE and EFE matrix 78

3.2.3.3 Analyze IFE, EFE matrix and combine SWOT 83

3.2.3.4 Using QSPM matrix 85

PART 3: CONCLUSION 89

REFERENCES 90

APPENDICES 91

LIST OF ABBREVIATIONS

O: Opportunities

T: Threats W: Weaknesses

LIST OF TABLES

Table 1.1 The macro environment factors

Table 2.1: Revenue of sales Service

Table 2.2: Number of CDMA Subscriber From 2006 to 2008

Table 2.3: Result of consulting, Designing and constructing business - From

2006 to 2008

Table 3.1: Telecommunication spending in some countries

LIST OF FIGURES, GRAPHS

Figure 1.1: Strategic business of administration model – Feedback information Figure 1.2 Business environment factors

Figure 1.3: The relation between factors in the operation environment of a company

Figure 1.4: Main parts of competitor analysis is presented as follow

Figure 1.5: Building process of EFE matrix

Figure 1.6: BCG matrix

Figure 1.7: Hoper matrix

Figure 2.1 Organizational structure of EVN Telecom

Figure 2.2: Production organizational structure of EVN Telecom

Figure 2.3: Diagram of organizational business

Chart 3.1: Subscriber development per year

Chart 3.2: Revenue of some telecommunication enterprise in 2008 compared to 2007

PART 1: INTRODUCTION

1.1 Reason of choosing the Topic

Nowadays, Information technology is gradually taking an important part in Nationaleconomy It becomes a huge industry that makes advantages for the other ones.Telecommunication network is compared to the blood vessel that can penetrate intoevery business, organization and people It is a network to connect enterprises toeach other and enterprises to customers as well The demand of information is verynecessary to every people today

In a background of hard economical competition, a telecommunication enterprisecan not remain passive to the change of business environment if it wants to getsuccess It must form a suitable strategy (What they are doing, will do and what theresults will be?) A good business strategy takes a main part in the company success

in the future and helps it to grow up firmly in the market Besides, business strategyhelps enterprise to quickly catch opportunities and reduce the risk of marketfluctuation

We can see that the nations of the world try to associate the economicaldevelopment with social development to reach a state of balance and stability Eachenterprise associate not only the economical development with social development

in its range of management but also find the interests from the social and humanmatters Therefore, it is considered that a development strategy of enterprise is ageneral strategy that direct to the comprehensive development And a businessstrategy is the basic for it

In practical business, if an enterprise does not have a business strategy or executeswrongly, it will be definitely unsuccessful The world witnessed the Japaneseprediction about the energy source and their effort in manufacturing high-class

electronic goods, cars… This has turned a poor resources Japan into a powerfulcountry in the world.

EVN Telecom has stepped into the telecommunication market since 2006 It is anational mobile network (096) that covered 64 cities and provinces in the wholecountry In a severely competitive environment, EVN Telecom has succeeded withremarkable services, reasonable price and discovered the cordless fixed telephoneE-com However, with the continuous development of other competitors, it is veryimportant to choose a business strategy that is suitable to current period Inparticular, EVN Telecom has now been preparing for privatization

Originate in the practical requirements of EVN Telecom, we choose the topic:

"Form the business strategy and develop the mobile information network of EVNTelecom Company"

1.2- Goal of research

Our purpose is to bring out a general knowledge about building a business strategy

in a telecommunication service provider After that we will propose some solutions

to plan a business strategy in the future for EVN Telecom

The goal of research is to advance some suitable solutions, improve the businesseffectiveness, reduce cost and bring about more benefit for the company

This topic contains 3 parts: Preface, Contents and Conclusion The main content oftopic has 3 chapters:

Chapter 1: General reasoning of planning a business strategy

Chapter 2: Real situation of production and business and business strategy planning

in EVN Telecom

Chapter 3: Solution of building business strategy and developing mobileinformation network of EVN Telecom

PART 2: CONTENTS

CHAPTER 1: GENERAL REASONING OF PLANNING A BUSINESS STRATEGY

1.1 Business strategy overview

1.1.1 What is business strategy

The term “strategy” originated in the art of war in olden times It is considered asthe art of commanding means to win Borrowed from military term, the word

“strategy” is used popularly in both macro and micro economy There are manyconceptions about strategy such as:

- Strategy is an art of creating competitive advantages to defend (M.Porter)

- Strategy is to define the way and means to reach the specific target throughpolicies (General Aileret)

- Strategy is an art of combining and controlling actions to achieve long term targets(G.Hirsch)

According to another approach, “Strategy” is a manner that helps company answerquestions: “Were do we want to go? Where and how we can go? What do we have?What do others have?”

From the above conceptions, the term strategy of a company implies and reflects atarget in a long-term (3, 5 or 10 years) The process of deciding a strategy includedcompetitive environment, strengths and weaknesses We can see that a companystrategy is a product It combines the environment factor and the things that thecompany can reach and want to reach

Through times, the conceptions of strategy have changed There are now two

- Business strategy is a mean to achieve the long-term target The idea of businessstrategy is to attack and to win in competitive market.

- Business strategy is a set of long-term target, policies, production and businesssolutions, finance and human factor to develop the company business activities andreach higher quality

In summary, business strategy is an art of optimal organizing and combiningresources It proposes and implements the decision that is suitable to the variabletrend of environment to win in competitions and reach the long-term target

1.1.2 Specific meaning of Business strategy

We can see the basic figures of business strategy are:

- Business strategy has to specify the basic target in each phase and be graspedthoroughly

- Ensure to mobilize totally and combine optimally the using of human and financialresources Take full advantage of opportunity to contend with other competitors

- Is reflected during a continuous process from building to evaluating, inspectingand adjusting strategy

- Is built and implemented in a long-term period (3, 5 or 10 years)

In the market mechanism, the building and deploying business strategy has animportant meaning to the existence and development of a company

- It helps the company recognize the target and direction It is the foundation fordetermining the orientation and when the company can reach the specific target

- The market fluctuation always creates opportunity and risk To build andimplement business strategy will help the company grasp and take advantage of itand overcome the market risk and trap

- To build and implement business strategy will firmly create foundation forsuitable decision.

- To build and implement business strategy will take part in increasing theeffectiveness of using resources Reinforce the competitive position and ensure anunshakeable development

1.1.3 The necessary of Company Business strategy

1.1.3.1 Financial benefit

The researches show that if a company has a good strategy, it will be successful.The company that has good financial condition trends to plan for the internal andexternal fluctuation

1.1.3.2 Non financial benefit

With the strategy, the company operation will follow one direction This will bringsuccess and high benefit It helps the company to develop with a stable organizationand relationship… It will raise the productivity and reduce the risk Besides, it willbring order and discipline to the company It is the beginning of an effectiveadministration system, restore the belief of current business strategy and execute thecorrecting activities

1.2 Building and choosing the Company Business strategy

1.2.1 Process of Business strategy.

The conception of administration appeared for a long time but the administrativetheory that was researched basing on the scientific analysis appeared in late 19th andearly 20th decade

Strategic administration is a process of researching environment to set up strategictargets, policies and solutions It will help organization to bring out strategies,

policies and give decision of correcting, inspecting, evaluating the business strategyexecution.

1.2.1.1 Phase of Forming strategy

Forming strategy is a process of setting up the business task, surveying the internaland external factors, proposing the long-term targets and choosing replaceablestrategies It has 3 basic activities:

- Research: collect and handle information about market This is called “Take aglance at the business environment” Basically, it specifies strong and weak points

in the business field Other surveys could be executed such as employee spirit,productivity, advertisement and customer loyalty

- Combine intuition and analysis: A few companies can develop prosperouslywith intuitional genius managers But most of the company gets benefit fromstrategy by combining harmoniously intuition and analysis in giving decision

Give decision: no organization has infinite resource Therefore strategists must givedecision about choosing an effectively replaceable strategy The decisions in thisphase are about product, market, resource and technology

1.2.1.2 Phase of performing strategy

This is a phase of action That means to mobilize all administer and employee toexecute the planned strategies The basic activities are:

- Set up annual targets: they are the milestone that companies have to obtain toreach the long-term target

- Policies: they are means to achieve the target They include the instructions,regulations and procedures to support for reaching the targets

- Distribute resources: it is an administrative activity that pays attention to thestrategic execution Strategic administration allows companies to distribute the

resources They are established by annual targets There are 4 resources can beused:

1.2.1.3 Phase of evaluating strategy

It is very necessary to have this phase in each company A timely evaluation willalarm the problems so that administers can interfere before they become moreserious

Timely feedback information is the foundation of strategic evaluation RichardRurnel has proposed 4 standards of evaluating strategy:

+ Consistency

+ Suitableness

+ Advantage

+ Feasibility

Control external factors

to specify opportunity and risk

Control external factors

to specify opportunity and risk

Reconsider the business target

Set up term target

short-Propose policies

Distribute production resource

Set up term target

short-Choose strategies

Inspect and evaluate

1.2.2 Analysis of Company Business environment

1.2.2.1 Factors of Business environment

A good strategic management depends on the knowledge of companies about theenvironment that they are coping with The environment factors have wide and deepaffect to the next step of the strategic management process

The 3 levels of environment that companies have to face are: macro environment,operation environment and internal environment

The macro environment includes external factors It affects to the operationenvironment and internal environment It creates opportunities as well as risk for

Figure 1.2 Business environment factors

The operation environment includes external factors It orients the competition inthe business.

The internal environment includes the company resources

Macro environment

The analysis of macro environment will help the company answer the question:

“What is it now coping with?”

We have 5 factors mentioned in table 1.1: economy, government and politic,society, nature and technology

factors

Government and political factors Social factors

Natural factors

Technical factors

Period of

economic cycle

Regulations ofconsumptionlending

Opinion aboutliving standard

Environmentpollution

Cost ofresearching anddevelopingFinancial

resource

Antimonopolypolicies

Living style Lack of energy Cost of internal

research anddevelopmentTrend of GNP Environment

protection laws

Female labor Waste of

naturalresource

Technical efforts

aspiration

CopyrightprotectionInterest rate Regulations in

line of foreigntrade

Activeconsumption

Technologytransfer

Jobless rate Regulations of

lending andpromotion

Increasing population rate

Using human,machine

Financial policy Stability of

government

Shifting ofpopulation

Economical factors

The economical factors take much affect to the company They are interest rate,period of business cycle, balance of payments, financial and currency policy Thecompany has to select the specific impact Each factor may be opportunity or risk

Government and Political factors

The government and political factor impact to the company activities The companyhas to conform to the regulations of tax, loaning, insurance, advertisement,environment protection… The government activities can create opportunity as well

as risk

Social factors

The company needs to analysis social factors to recognize opportunities and risk Ifthese factors can affect to the company such as: anthropology trend, interest ofentertainment, standard ethics, female labor…

Natural factors

The impact of the natural factors to company has been admitted However thecompany has not paid much attention in maintaining the natural environment

Technical factors

Most of the industrial business and companies depend on the technology There will

be more advanced technologies coming out into society They will createopportunities and risks to every industrial business and companies

1.2.2.2 Operation environment

Because the (common) influences of these factors are unavailable for all companies,the key to setup a successful strategy is analyzing each of these main factors

The understanding of competition pressure sources helps company to recognize itsweaknesses and strengths relating to opportunities and risks that company willencounter.

Potential Competitor

Competition between companies in the same line of business

Competitor

CustomersSuppliers

Replacement risk

Figure 1.3: The relation between factors in the operation environment of a company

What they want to

- What are their ability?

- What are their weaknesses?

- What can help them react in the most powerful and effective way?

Present strategy

How is the competitive ability of the company?

Figure 1.4: Main parts of competitor analysis is presented as follow

market share So, that makes competition more severe Companies should admitthat competition process is not stable.

Beside new competitors, new technology solutions affect property and level ofcompetition

Companies should analyze each competitor to master actions and reactions theymay approve

Customer

Customer problem is not apart from competition environment Goodwill is the mostvaluable property The goodwill achievement is due to company meets the demandbetter than competitors do Other key problem is bargaining ability of customer.The buyer has ability of decreasing the benefit of a business sector by mean of pricesqueezing or requiring higher quality and more services

- Number of supplier is little

- There isn’t replacement

- There isn’t supplier offering different product

Supplier selection relies on seller analysis result Analysis supplying organizationhas importance significance for any company In some certain time, mostcompanies including well-doing ones, have to temporarily borrow money fromfinancial market They can use this capital source by short-term borrowing, long-term borrowing capital issue Before analyzing capital market, company should payattention to define its position in competition with others.

Labor source is a main factor in company’s competition environment The ability ofattractiveness and hold competence employees is prerequisite to ensuring success ofcompany Main factors need analyzing:

Potential competitor

New-started competitor is a factor decreasing benefit of company because it setsinto extraction new production ability with desire to secure market share andnecessary resources

Buyback other companies in the same business in order to building market share isnormally a manifestation of appearing new competitors Although company doesnot always have new potential competitors at any time, the danger of newcompetitors integrating in business has influence on company’s strategy

A barrier preventing the entering is strong withstanding of well-establishedcompany

Replacement

The pressure of replacement restricts potential benefit of a business because higherprice is limited If a company not pay attention to replacement, it may fall behindwith small market share

Hence, company should incessantly research and check new potential replacement.Most of replacement is result of technology explosion To get achievement,

company need pay attention to using resources to develop and apply newtechnology in its strategy.

1.2.2.3 Internal environment

Internal environment includes all factors and systems inside company It’s

necessary to throughout analyze these factors because it overcomes weaknesses and promote strengths Internal environment factors include:

- Human resource

- Production research and development

- Finance and accounting

- Marketing

- Organization discipline

Human resource factors

Human resource takes a very important role in the success of company Humanprovide input data to form target and analyze environment Although opinions ofgeneral planning system is absolutely correct, it can not bring benefit if lack ofcompetent man

Research and development factors

The quality of research and development is a factor which determines company inthe top or behind position in comparison with other leading company in area ofproduct development, product quality, price control and production technology.Qualification, experience and scientific ability are not enough foundation for goodresearch Research and development department have to closely monitoredenvironment factors and technology innovation regarding technical process, productand materials

The effective information exchange between research and development departmentand other departments take an important role in the success of company.

On the other hand, weak production results on unmarketable product, financial loss

and indifferent attitude of employees

Financial and accounting factors

Function of finance sector includes analyze, plan and check implementation offinancial plan and financial position of company Small company can use oneperson responsible for finance problem and hold concurrently: accountant, financialrecord keeper, manager or financier

Large company can organize many departments as: financial accounting, inspectordepartment

Financial sector has responsibilities relating to resources such as:

- Resource finding including capital resource finding

- Expenditure control

Marketing factors:

Function of marketing includes analyze, plan, execute and check the program, inthere it focus on training and maintain the relationship with customers on principle

of mutual benefit Therefore, marketing tasks is monitoring level, time and property

of demand; that helps organization achieves goals and form effective strategy ofproduct, assessment, communication and distribution suitable for target market

Organization discipline:

Each company has its own discipline to orient most of work It influences ondecision modality and opinion of managers wits regard to strategy and operationenvironment

The discipline is a weakness impeding strategy forming and implementing or astrength promoting these activities Company with strong and positive discipline hasmore chances to succeed than the other one with weak and passive discipline

Company is like a live-body because man makes it operate and form its sense and

goals Organization discipline is a collection of experience and internal climatewhich unite together to form “The way we do our work”

Organization discipline is an interaction mechanism with environment

1.2.2.2 Analyzing business environment

Nowadays, there is information overload So it is important for informationcollecting to grasp necessary information and wits right form.

Propety ofimpact

Grade offactorsBasic

medium, 1= low

Classify impact level

of each factor oncompany:

3= much, 2= medium,0= no impact

Describenature ofimpact

Column1: List most important environmental factors and their components

Column 2: Classify environmental factors according to their important level

Column 3: Classify impact of each factor

Column 4: Describe impact of each factor

In the table, we see which factor impact and how it influences on company Thepositive factors have positive sign The passive factors have negative sign Toevaluate nature of factors, we have to compare bottom line

Propose reaction strategy:

Up to now, steering committee have enough condition to make decision and method

to respond to opportunities or danger arising There are many methods of strategyreaction but company would do nothing if opportunity or danger is not remarkable

Strategy is made on forecast basic of business environment In fact company couldencounter unexpected situation To take precautions of inaccurate forecast,company should have flexible and concrete strategy.

1.2.3 Some evaluation model

1.2.3.1 Peripheral factor evaluating matrix

Building process of EFE matrix includes 5 steps:

Step 1: List factors has decisive role in the success of company (10-20 factors)

Step 2: Define important level from 0,0 (not important) to 1,0 (very important).Total of level on the list is 1

Step 3: Define coefficient from 1 to 4 of each factor in relation to responsive ability

Givecoefficientfor eachfactor

Gradeeachfactor

Add markfor eachfactor inthe list

Figure 1.5: Building process of EFE matrix

Step 5: Add the grades of all factor list If result is 2.5, it is medium, 4 is the highestand 1 is the lowest.

In short, micro and macro factors can combine together in many ways, direct orindirect impact on company to create opportunities or threats

The importance is to analyze, evaluate level of impact and responsive ability ofcurrent strategy in the fight against the changes

1.2.3.2 BCG Matrix

Main purpose of BCG is helping strategy manager to recognize the requirement ofdifferent SBU (Share of Business Unit) in investment list

BCG includes 3 steps:

- Company is divided into some SBU, each SBU is evaluated of its prospect

Compare SBU in a square matrix, show their prospect

Star: SBU in top position

Question mark: SBU in weak position

CowDog

Figure 1.6: BCG matrix

Cow: SBU in low growth rate business but has high market share

Dog: SBU in low growth rate business and has small market share

1.2.3.3 HOPER Matrix

Corporate-level strategy determining relies on two factors:

The competitive position and the stages of business cycle

Combination of these 2 factors determines the best strategy for each stages ofbusiness

Figure 1.7: Hoper matrix

1.2.3.4 SWOT Matrix

S: StrengthsO: OpportunitiesT: Threats

W: Weaknesses

Embryo Market share building Market share building

Rising Developing Market concentrate

Fluctuation Market share raising Market concentrate or

dissolveGrowing Strengthen and gain

Slackening Market concentrate or

asset reduce

Situation reverse ordissolve

SWOT analysis, method, or model is a way to analyze competitive position of your

company SWOT analysis uses so-called SWOT matrix to assess both internal andexternal aspects of doing your business The SWOT framework is a tool forauditing an organization and its environment

SWOT is the first stage of planning and helps decision makers to focus on keyissues SWOT method is a key tool for company top officials to formulate strategic

plans Each letter in the word SWOT represents one strong word: S = strengths,

W = weaknesses, O = opportunities, T = threats.

To build SWOT Matrix, the first step is listing strengths, weaknesses, opportunitiesand threats, then comparing in a systematic way each correlative level amongfactors to make combinative level

- S/O: combination is gain from combining main strengths and Opportunities.Company uses strengths and opportunities to compete with others and non-stopexpanded market

- W/O: combination is the association of weaknesses and opportunities Thiscombination opens up an ability of overcome weaknesses by means of opportunities

- S/T: Combination is the association of strengths and threats, it pays attention touse strengths to overcome threats

- W/T: combination is the association of weaknesses and threats It demandscompany decrease weaknesses by means of setting up defensive strategy

CHAPTER 2: CONDITON OF PRODUCTION - COMMERCE OPERATION AND STRATEGY PLANNING OF EVN TELECOM

2.1- Summary of EVN Telecom

2.1.1 Formation and development process of EVN TELECOM (EVN Telecom)

EVN Telecom is a self-finance subsidiary of EVN Group It found by the380/NL/TCCBLĐ decision of Ministry of Energy, date 8/7/1995

Head office: 30A Pham Hong Thai, Ba Dinh, Hanoi, Vietnam

Tel: + (84 4) 2100 526

Fax: +(84 4) 228 68 68

International transaction name: EVN Telecom

2.1.2 Function, mission and organizational structure of EVN TELECOM

2.1.2.1 Function and mission

- Provide inbound and outbound telecommunications services and InformationTechnology

- Consulting, designing, implementing and maintaining telecommunications andinformation technology projects

- Operate and exploit information and telecommunication systems for production,transmission, distribution and sales of electricity

- Installing electricity constructions

- Exporting and Importing equipments, tools, commodities…

- Other activities

Services for customer:

a) Transmission

- Leased line and MPLS, IPVPN services

- LAN, WAN networks

- Data transmission (connecting to Centralized Servers)

- Virtual private network (VPN) services

b) CDMA network services

- Wireless telephony service (E-Com)

- Limited mobility service (E-Phone)

- Full mobility service (E-Mobile 096)

- Toll Free services and enterprise networks

c) Internet services

- Internet exchange Provider (IXP) service

- IP leased line

- ADSL service

- Internet over cable TV

- Internet access via WLL/CDMA

- Video conference

- Wireless broadband access

- Co-location, web design and hosting

- DNS services

d) Services based on NGN network

- Traditional telephony service (POTS) and additional services

- Domestic and international long-distance telephony services (Pre-paid and paid)

post 1800 free charges

- 1900 services for entertainment

- Fixed phone using IP phone and various value added services: IP Centrex,multimedia call…

- Others value added service based on IP infrastructure of the NGN Network:IPTV, Video on Demand, Game online…

2.1.2.2 Organizing structure

As an 100% state-owned and self-finance subsidiary of EVN Group, EVN Telecomobtains full licenses to provide all kind of telecommunication services in Vietnam.Based on a robust infrastructure, state-of-the-art technology, wide channel ofdistribution, well-trained and dynamic staffs, EVN Telecom incessantly endeavors

to provide valuable services with stable quality and competitive price in order to

satisfy customer requirements By the motto Customer Proximity, EVN Telecom

plans to reach 20% market share in telecommunications sector of Vietnam in 2010.Wholly-owned units:

+ Central Telecommunications Center

+ Central Highland Telecommunications Center

+ Southern Telecommunications Center

+ Project Management Board

With the participation of all Power Companies across 63 provinces/citiesnationwide, such as:

+ Power Company No1, Power Company No 2, Power Company No 3, HanoiPower Company, Ho Chi Minh Power Company, Dong Nai Power Company;

+ Ninh Binh Power Ltd, Hai Phong Power Ltd, Hai Duong Power Ltd, Da NangPower Ltd.;

+ Khanh Hoa Power JSC;

+ Telecommunications & Information Technology Centers directly under eachPower Company in 63 provinces/cities

+ Planning and material department:

Support the Director for giving direction in planning, statistic, manufacture andbusiness, material provision Manage the using of material in the company

+ Human resource department:

Business deputy director

Human resource department

department

Sales department International cooperation

department

Center 1

Consulting and designing department

Commercial department

Company Office

shop

Repairing-Center 2

Center 3

Fitting-shop

Planning and material department

Mobile information department

Public telecommun ication department

Figure 2.1 Organizational structure of EVN

TELECOM

Technical department

Center 4

Support the Director for giving direction in organizing staffs, labor, salary, trainings

in the company

+ Financing and Accounting department:

Manage finance and book keeping operation in the company

+ International relation department:

Support the Director for giving direction in international cooperation fields.Approach the international market Study material price, imported equipments,choosing international trading partner, suitable technology Manage the externaleconomy of electric telecommunication

- Business Deputy Director: manage:

+ Business department:

Support the Director for giving direction in telecommunication business

- Technical Deputy Director: manage:

+ Engineering department

+ Northern Telecommunications Center, Telecommunications Branch 1,Telecommunications Branch 2, Telecommunications Branch 3,Telecommunications Branch 4

- Capital construction deputy director: manage:

+ Consulting and designing department

+ Management construction department

+ Mobile information and public telephone department

Found since 2001 with target of building and developing information system,extend the telecommunication network of electrical engineering

2.1.2.3 Manufacturing organizing structure

International telecommunications network

- EVN Telecom has joined a number of biggest international and regional opticalfiber networks, connecting Vietnam and the outside world through 03 InternationalGateways:

+ Mong Cai International Gateway, 12,5 Gbps

+ Lang Son International Gateway, 10 Gbps

+ Moc Bai International Gateway, 2.5 Gbps

Figure 2.2: Production organizational structure of EVN TELECOM

Northern

Telecommunications

Center

Telecommunications Branch 2

Telecommunications

Branch 4

EVN Telecom

Telecommunications Branch 3