VietNamNet Bridge – The strong infrastructure system and the experience in market development of telecom groups will make them the redoubtable rivals to the existing cable TV service providers, including the national VTV.
The biggest advantage of the existing TV enterprises lies in the content
production. Meanwhile, this proves to be the biggest disadvantage of telecom
groups once their join the TV market.
However, telcos have a great advantage in transmission, which is the biggest
disadvantage of the current TV enterprises. It’s obviously an impossible mission
for TV enterprises to build up the transmission lines to provide services to
every household in communes and villages.
Therefore, TV enterprises anticipate that they would be inferior to telcos when
the telcos join the pay-TV market. As soon as telcos expressed their intention
to jump into the market, TV enterprises raised a campaign to prevent telcos from
entering their land.
In a document sent to competent agencies, the alliance of TV enterprises, headed
by VTV, accused Viettel, VNPT and FPT, the big telcos planning to jump into the
pay-TV market, of making investment in non-core business fields, thus coming
contrary to the government’s policy which says that state owned enterprises need
to gather their strength on the main business fields.
However, in reply, the Ministry of Information and Telecommunication has clearly
stated its viewpoint that all enterprises are encouraged to take full advantage
of their existing infrastructure items to develop diversified services,
including cable TV. As such, Viettel, FPT and VNPT can use their existing
infrastructure system to provide many other types of services, not only TV.
Therefore, the decision by the telcos to provide pay-TV services should be seen
as the way for the telcos to take full advantage of their advantages, instead of
“making investment in non-core business fields” as accused by the TV
Truong Gia Binh, President of FPT, the biggest technology group in Vietnam, said
if telcos are not allowed to jump into the pay-TV market, this would be a big
waste of resources to telcos and the society as well. In the context of the
network service convergence, one would take loss if he only provides one service
on one cable line.
According to Nguyen Manh Hung, Deputy General Director of Viettel, the group had
developed 200,000 kilometers of fiber cable nationwide, which means that
Viettel’s cable has reached out to every family. Therefore, if Viettel provides
cable TV service, it would be able to save the investment costs, provide high
quality services and reach to remote areas.
High expectations put on telcos
Analysts believe that the pay-TV market would become more competitive, once
telcos officially join the market, thus benefiting customers.
Of the three telcos, Viettel is believed to be the most dangerous rival,
followed by VNPT. Both of them are believed to have the best infrastructure
systems which reach out to every commune.
People put a high hope that Viettel would be able to make a “revolution” in the
cable TV market like it could do in the mobile service market. Price and service
quality are always the main factors that decide the enterprises’ success.
Meanwhile, Viettel believes that it has both.
VCTV, SCTV and other existing cable TV firms have been providing services based
on old technologies. Meanwhile, if Viettel, VNPT and FPT Telecom join the
market, they would utilize advanced technologies which would better satisfy the