. the average Internet charge is now down to just VND70 a minute, nearly equivalent to that throughout the region. It is a little high mainly because of telephone charges, as most Internet users in Vietnam hook up to the Internet via telephone lines.
Statistics of the total number of Internet subscribers in Vietnam are not consistent due to several services (subscription, prepaid cards, Internet access through dialing VNN 1269, and so on) offered by ISPs. Hoang Manh Cuong, vice head of the technology and planning division of Netsoft (the provider of VNN Internet services in HCM City), says the total number of Internet users in Vietnam is about 200,000. VNN holds 60% of the figure (some 120,000), FPT 30%, and SaigonNet and Netnam the remainder. However, according to Truong Dinh Anh, director of FPT (Internet), the company now has some 200,000 subscribers. Anh is interested in Vietnam's Internet market. "The domestic Internet market has great potential while the competition is not so harsh. With an annual growth of 100%, there are many opportunities for ISPs to develop," he says.
FPT is dynamic in taking new chances. Granted an IXP license in May this year, the company will open two Internet gateways, 8MB each, in Hanoi and HCM City in July. The total investment capital in the two gateways is estimated to reach US$2 million, including optic cable and satellite channels. As regulated by VNPT, all international links must be carried out via channels leased from the Vietnam Telecommunication International (VTI) under VNPT. Last year, the monthly rent for a 2MB international channel was US$60,000; VTI reduced the rent to US$18,000 early this year but according to FPT, "it is still three times higher than that in regional countries." With such investment, FPT aims not only at developing customer services but also leasing international channels to other ISPs, Anh says.
The military telecom shareholding company Vietel, a heavyweight rival on the local telecom market, also received an IXP license last month. The company is now acting as an ISP to effectively offer local and international VoIP (voice over Internet protocol) inexpensive telephone services. Cuong from Netsoft says the competition on the Internet market will be fiercer in the near future. As charges are low, companies concerned will have to compete in improving quality and diversifying services.
ISPs join the race. VNPT has an edge in the competition. As the national telecom grid and postal service network are under VNPT's control, it will have more favorable conditions than other competitors in terms of serviceable and technological supply. VNPT is now providing high-speed data transmission services, ISDN and ADSL, in HCM City on a trial basis in preparation for an official nationwide launch in the near future. A monopoly has allowed VNPT to offer services such as Internet access through dialing VNN 1269 (for any telephone subscriber without registering to hook up to the Internet) and ISDN and ADSL high-speed data transmission, which cannot be supplied by other businesses. Realizing the competition pressure from new opponents, however, Cuong from Netsoft says, "We are never subjective. We have to professionalize ourselves by steadily diversifying services and improving managerial skills, along with reducing charges."
A long-time ISP, FPT has received a large number of clients. The company is more confident since receiving an IXP license. Together with the struggle against the monopoly, FPT is negotiating with new ISPs to attract more potential customers. About 10 new ISPs are still waiting for any market change and VNPT's price policy in the future. Some are preparing their own business strategies. QTNet, a new ISP, provides networking solutions for customers in export processing zones and industrial parks. Tran Ngoc Duc, QTNet director, says his shareholding company is cooperating with the HCM City Power Supply Co. to deliver bills and collect money from their clients. Techcom, another new ISP, is also ready for networking service supply. Tran Tho Nguyen, Techcom director, says his company will focus on on-line services such as virtual office, software and labor export, and teaching.