Vietnam - Telecommunications Infrastructure, Forecasts and Major Fixed-Line Players

Synopsis

This report looks at a key aspect of Vietnam’s telecommunications sector – progress in the development of the country’s telecom infrastructure. The Socialist Republic of Vietnam continues to grapple with its transition from a centrally planned economy to an economy based on the open market model. For a considerable period the role of the state in telecommunications had been holding back reforms in the regulation of the sector. More recently this has been changing. As a result, the country has become much more attractive market to foreign investors. Nevertheless more reforms are required. In the meantime, Vietnam has launched Vinasat-1, the country’s first satellite, placing it in orbit in 2008 and is already well advanced in planning for the launch of Vinasat-2 scheduled for 2012. There have also been some partnerships formed over the last few years involving Vietnam in new submarine cable systems. In addition to reviewing telecom infrastructure, this report also takes a brief look at the major fixed-line operators.

Key developments:

The broadband market has started to grow, although it stalled in early 2011; wireless broadband services are increasingly popular; the booming mobile market reached a penetration of around 170% in early 2011; a downturn in demand has hit the market, however; it is yet to be seen how this will play out; the seven operators will continue to fuel a highly competitive situation; the government continues to explore strategies for part privatising the state-owned telcos.

Companies covered in this report include:

VNPT; Viettel; EVN Telecom; Saigon Postel (SPT); FPT Telecom; VTC, a VNPT subsidiary; CMC; GTel; Tata Communications; VTI, a VNPT subsidiary; Lockheed Martin.

Table of Contents

• 1. Synopsis
• 2. Telecommunications infrastructure
  • 2.1 National telecom network
    • 2.1.1 Overview
    • 2.1.2 Background to development
    • 2.1.3 Payphones
    • 2.1.4 Next Generation Networks (NGNs)
    • 2.1.5 Wireless Local Loop (WLL)
  • 2.2 Forecasts – fixed-line market – 2015; 2020
  • 2.3 National infrastructure projects and equitisation
    • 2.3.1 SK Telecom
  • 2.4 International infrastructure
    • 2.4.1 Background to development
    • 2.4.2 Submarine cable networks
    • 2.4.3 Satellite networks
• 3. Fixed network operators in Vietnam
  • 3.1 Vietnam Post & Telecommunications (VNPT)
  • 3.2 Saigon Postel
  • 3.3 Viettel
  • 3.4 VP Telecom/EVN Telecom
  • 3.5 FPT Telecom
  • 3.6 GTel
• 4. Notes on scenario forecasts
• 5. Related reports

• Table 1 – Fixed lines in service and teledensity – 1990 - 2012
• Table 2 – Forecast fixed line subscribers and penetration rates – 2015; 2020
• Table 3 – VNPT fixed-line subscribers and teledensity – 2000 - 2010