The Authority of Telecommunications under the Ministry of Information and Communications (MIC) revealed on June 2 that a second mobile virtual network operator (MVNO) will soon debut in Vietnam.
The seventh telecom provider in the country, the new network will be launched with a new prefix number and use the mobile phone infrastructure of the State-owned Vietnam Posts and Telecommunications Group (VNPT), which boasts among the best coverage and quality in the country.
Vietnam is one of the youngest MVNO markets in the world, with its first virtual operator - the Indochina Telecom Company (Itelecom) - launched in April this year.
A virtual network operator does not own network infrastructure but rather purchases telecommunications services from traditional mobile network operators (MNO) and resells network services after repackaging at lower prices.VNA
The pioneering Itelecom has entered into an agreement with Vinaphone, a mobile subsidiary of VNPT, which gives it access to the company’s network services and allows it to offer its own. The prefix of its mobile service is 087.
In its initial phase, Itelecom is being introduced to workers at industrial zones in nine cities and provinces: Hanoi, Ho Chi Minh City, Thai Nguyen, Vinh Phuc, Bac Giang, Bac Ninh, Binh Duong, Long An, and Dong Nai.
According to MIC, a legal framework has been established for virtual telecommunications networks.
The MVNO model will help save investment costs for businesses and avoid any waste of social resources as unused traffic and infrastructure of MNOs can be exploited by carriers that do not have their own infrastructure, said Nguyen Phong Nha, Deputy General Director of the MIC’s Authority of Telecommunications.