Licensed for GTel mobile network

The Ministry of Information and Communications has granted a license to Global Telecommunications Corporation (GTel) to provide mobile information services, bringing the total number of existing mobile networks in Vietnam to 7.

Mr. Pham Hong Hai, Director of Telecommunications Department (Ministry of Information and Communications) has confirmed that GTel has been licensed mobile communication service in high frequency 1800 MHz band. In addition to the license for providing mobile communication services, GTel is also provided with telecommunications infrastructure.

With the licensing for GTel, Vietnam mobile market has 7 operators of mobile information services. Many people believe that a market of about 85 million people like Vietnam has 7 mobile networks is too much. However, Mr. Pham Hong Hai affirmed that the World Trade Organization (WTO of Vietnam) regulations do not limit the number of enterprises participating in providing mobile information services in Vietnam market. The problem is that if you run out of resources, you will not be able to license more mobile networks.

Russian mobile brand Vimpelcom is about to enter the Vietnamese market

As expected, GTel will be licensed in January so that in early February 2008, it will be able to promptly test for a license to deploy third-generation mobile technology (3G). Thus, there will be 7 mobile networks eligible for 3G exams, but only 4 will win. Although GTel is a "newcomer", it is considered a serious competitor in the race for a 3G license.

Analysts say mobile network GTel will suffer from 'slow drinking water buffalo' because it has to deploy mobile services on the 1800 MHz band, requiring investment in many mobile BTS stations for coverage. . The fastest two years before GTel Mobile can commercialize its mobile service. Thus, when the mobile market of Vietnam will be at an average of about 60% of the population using mobile phones. This is the level of saturation and operators will shift from a new subscriber development strategy to their subscribers and GTel Mobile's entry will be full of spikes. This is also the time when mobile networks in Vietnam began to be merged or destroyed after fierce competition.

In addition, the development of GTel Mobile in the future depends mainly on two factors: development strategy and human resources.

GTel was established on the basis of cooperation between the Ministry of Public Security and Russia's second largest mobile carrier Vimpelcom. This agreement will establish a GSM mobile telecommunications joint venture in Vietnam called GTel Mobile. Vimpelcom also announced a $ 1 billion investment in Vietnam in the next few years, providing technology to develop Vietnam's GSM mobile network. Vimpelcom will also be the Millenium Global Solutions Group (USA) participating in GTel Mobile.

Vimpelcom has 44% owned by Russian telecommunications company Altimo of Alfa Group of billionaire Mikhail Fridman. 29.9% owned by Norwegian telecom carrier Telenor.

Currently, the mobile information market in Vietnam has 6 operators including MobiFone, Viettel, Vinaphone, S-Fone, EVN Telecom, HT Mobile and soon to have a new mobile network GTel. Recently, HT Mobile mobile network has been approved by the Prime Minister to convert technology from CDMA to GSM. The Ministry of Information and Communication affirmed that the management position of the Ministry is technology neutral.