Viettel pioneers free roaming in Cambodia, Laos, Vietnam
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Vietnam’s state-owned telecom Viettel will eliminate overseas roaming charges between its operators in Vietnam, Laos, and Cambodia from January 2017.
“Users of Metfone in Cambodia, Unitel in Laos and Viettel in Vietnam will be charged at the local mobile fee when they make cross-border calls to each other,” said Nguyen Manh Hung, Viettel’s managing director, who regards the three countries as an economic and cultural bloc.
Discussions about free roaming services started years ago in Australia, Europe, and New Zealand, but without bearing fruit. Free roaming within the Association of Southeast Asian Nations has also been discussed by regional ministers since 2013.
Viettel has well-established infrastructure in the three countries, and is the first telecom to launch such a service within a regional economic bloc, promising cheaper cross-border rates for calls and data.
In a statement released on Thursday, Viettel said it expected its individual operators to lose some revenue initially with the reduced charges, but provided no figures. The figure could be 2% according to one Europe model in 2013. Viettel expects users to become more active when they travel if they can continue paying domestic rates.
Military-run Viettel posted revenue of $9.7 billion in 2015 with 13% year-on-year growth, and profits up 8% to $2 billion.
As of September 2016, Viettel had 90 million customers, of which 26 million were in nine overseas markets: Burundi, Cambodia, Cameroon, Haiti, Laos, Mozambique, Peru, Tanzania, and Timor Leste. Viettel has targeted 25 countries by 2020.
Metfone in Cambodia has a brand value of $94 million and is the leading mobile service provider in the country with 5.5 million customers and 37% market share. It recorded $256 million in revenue last year.
Viettel already operates in East Timor, and is about to launch in Myanmar with a $1.5 billion commitment and two local partnerships. It is also believed to be negotiating its entry into Indonesia.
Questions & Answers
Q.Which specific services will be subject to the new free roaming policy between Vietnam, Laos, and Cambodia?
Which specific services will be subject to the new free roaming policy between Vietnam, Laos, and Cambodia?
Users of Viettel’s operators in these countries will be charged local mobile fees when they make cross-border calls to each other. The policy promises cheaper rates for both calls and data services.
Q.Has a similar free roaming initiative been successfully implemented elsewhere before Viettel's launch?
Has a similar free roaming initiative been successfully implemented elsewhere before Viettel's launch?
Discussions about free roaming have occurred in Australia, Europe, and New Zealand for years, but without bearing fruit. Regional ministers have also discussed free roaming within ASEAN since 2013.
Q.How significant are Viettel's operations in Laos and Cambodia compared to its other foreign markets?
How significant are Viettel's operations in Laos and Cambodia compared to its other foreign markets?
Cambodia and Laos were Viettel’s first foreign ventures and remain its most profitable. Unitel in Laos has accumulated revenue of $1 billion and Metfone in Cambodia is the leading mobile provider with 5.5 million customers.
Q.Will Viettel's individual operators experience an immediate financial impact from eliminating roaming charges?
Will Viettel's individual operators experience an immediate financial impact from eliminating roaming charges?
Viettel expects its individual operators to lose some revenue initially due to the reduced charges. However, it believes users will become more active when travelling, offsetting some losses.