Telecommunications revenue drops sharply, landline phones are only moderate

The whole country has more than 123.6 million mobile subscribers per 97.6 million people, due to the impact of the Covid-19 epidemic, telecommunications revenue has plummeted by 13.6%, reaching VND 315,200 billion…

Vietnam is one of the fastest growing telecommunications markets in the region and the world in recent years. According to the General Statistics Office, at the end of 2005, Vietnam had only 15.8 million telephone subscribers, including 8.7 million mobile phone subscribers and 7.1 million landline phone subscribers and 210,000 telephone subscribers. cover the Internet. But only 5 years later, the whole country had 125.9 million phone subscribers, nearly 8 times more. In which, there are 111.5 million mobile phone subscribers, 12.8 times higher and 14.4 million landline phone subscribers, 2 times higher. The number of Internet subscribers increased rapidly during this period with 3.7 million fixed broadband Internet subscribers, 17 times higher than 2005. But after that, the number of phone subscribers decreased gradually, the biggest decrease was fixed phones. In the period 2012 – 2015, the number of telephone subscribers achieved an average growth of 0.5%/year, of which the number of mobile phone subscribers increased by 2.1%/year and fixed subscribers decreased by 17.7%/year. year. In contrast, the number of fixed broadband Internet subscribers is still growing quite high, an average of nearly 16% per year, reaching 7.7 million subscribers in 2015. However, in recent years, the telecommunications market is facing saturation of traditional telecommunications services. The number of landline phone subscribers tends to decrease sharply. By the end of 2020, there were only 3.2 million subscribers, down 41% compared to the same period in 2015 and down 78% compared to the same period in 2010. The operation of the fixed telephone service segment is currently only in moderation, mainly serving agencies, government organizations and businesses. For mobile phone subscribers, by the end of 2020, the whole country has 123.6 million subscribers, which is only close to the number of subscribers in 2015. In addition to the recent decrease in demand, there are also mobile phone operators. The network handles garbage SIM according to the regulations of the Ministry of Information and Communications. The number of broadband Internet subscribers continued to maintain a high growth rate for many years when at the end of last year, there were 16.7 million subscribers, 2.2 times higher than in 2015, an average annual increase of 16.9%. The growth rate of the telecommunications market is also reflected in the revenue figures, whereby telecommunications revenue in 2010 reached 177.8 trillion VND, maintaining the growth rate of over 40% in previous years. By the period 2011 – 2015, post and telecommunications revenue continued to maintain a fairly high growth rate, increasing by nearly 60% in 2015 compared to 2010, increasing by nearly 10% on average per year. In the period of 2016 – 2018, telecommunications revenue maintained a fairly high increase of nearly 8% compared to the previous year, but by 2019 only increased by 2.6%. Particularly in 2020 due to the impact of the Covid-19 epidemic, telecommunications revenue dropped sharply by 13.6%, reaching only VND 315,200 billion. The telecommunications market share is quite fiercely competitive by optimizing value-added services on the number of existing subscribers. In addition, revenue from traditional telecommunications services is also greatly influenced by the popularity of free calling and messaging OTT applications. Decision No. 749/QD-TTg dated June 3, 2020 of the Prime Minister approving the “National Digital Transformation Program to 2025, with orientation to 2030” has made Vietnam one of the The first country in the world to issue a program on National Digital Transformation, which is a favorable condition for businesses to actively exploit the opportunities brought by the technological revolution. With the goal of “Vietnam belongs to the group of 70 leading countries in e-Government (EGDI)”; “Digital economy accounts for 20% of GDP”; “The fiber optic broadband network infrastructure covers over 80% of households, 100% of communes” and “Universal 4G/5G mobile network services and smart phones”, telecommunications businesses, digital businesses there is a lot of room for growth.