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Vietnam to develop broadband telecoms to better serve users’ needs

In 2021, due to the impact of the COVID-19 pandemic, people had to switch to online learning, working and entertainment, and the demand for the Internet also increased, thus creating an opportunity to develop the telecommunications industry, but also posing many challenges for domestic fixed and mobile broadband subscription providers.
Vietnam to develop broadband telecoms to better serve users’ needs ảnh 1Illustrative image (Source: emerging-europe.com)
Hanoi (VNA) - In 2021, due to the impact of the COVID-19 pandemic,people had to switch to online learning, working and entertainment, and the demand for the Internet also increased, thus creating an opportunity to developthe telecommunications industry, but also posing many challenges for domesticfixed and mobile broadband subscription providers.

Therefore, developing telecoms infrastructure and broadband Internetservices to better serve the needs of users is a goal of the industry in2022.

Doan Quang Hoan, General Secretary of the Radio-ElectronicsAssociation of Vietnam, said that users almost do not care about how many Mbpsthe network speed is, but the stability when experiencing registeredinternet services.

According to statistics of the Department ofTelecommunications under the Ministry of Information and Communications, by theend of 2021, Vietnam had 70.9 million mobile broadband subscribers, accountingfor 57.23 percent of the total number of mobile subscribers, up 4 percentyear-on-year; and 18.79 million fixed broadband subscribers, up 14.59 percentyear-on-year.

Although the trend of developing fixed broadband services isinevitable to serve the digital transformation in Vietnam in general as well asthe increase in people's demand for Internet use in particular, the pressure ontelecommunications revenue is still very high.

Vietnam to develop broadband telecoms to better serve users’ needs ảnh 2Illustrative image (Photo: VNA)
The average revenue per unit (ARPU) of fixed broadbandsubscriptions in 10 months of 2021 was only about 137,000 VND (about 6USD), down 8 percent compared to 2020 (149,000 VND). Among the nearly 18 millionfiber-optic broadband subscribers in Vietnam, up to 83 percent use packageswith speeds below 100Mbps, making Vietnam's fiber-optic broadband speed stillmuch lower than that of some countries in the region.

Hoang Duc Dung from the Viettel Network Corporation, anaffiliate of the Viettel Group, said that Vietnam is among the markets with thecheapest internet charges in the world, ranking 12th out of the 211 countries andterritories in terms of fixed broadband internet charges. In 2021, Internetcapacity grew rapidly, but revenue only increased 2 percent per year. This is agreat pressure on telecoms service providers, he added.

Minister of Information and Communications Nguyen Manh Hung said that infrastructure must be developed first and fast, and thetechnologies applied must be modern ones.

Deputy Director of the Telecommunications Authority NguyenPhong Nha held that to improve broadband internet quality, focus should be placed on upgrading bandwidth and modem devices’ capacity, widening domestic andinternational bandwidth, and adjusting standards./.
VNA

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