[Updated] Ministry Approves Increased 3G Fees

[Update Below] Vietnamese telecommunication companies are awaiting a decision by the Ministry of Information and Communication that would double 3G fees in the country.

According to VN Express, 3G service, which currently costs around VND50,000 per month (depending on your carrier), is eating away at the profits of Vietnamese telecos. Statistics show that 3G service fees are only covering 35 – 68% of costs. Selling the service at this price is making it difficult to recapitalize infrastructure investments and improve service quality, they said.

However, the Department of Telecommunications said that prices should not be increased sharply to avoid disturbing customers.

3G quality in Vietnam is notoriously shoddy and many are unwilling to pay higher prices without an improvement in service, said a department spokesperson.

There are currently 15.7 million 3G subscribers in Vietnam, making up only about 10% of total revenue.

We just miss the not-so-distant glory days of 100% discounts.

[VN Express // Flickmor] 

Update 14/10: The Ministry of Information and Communication has approved a price hike for 3G services.

Starting October 16, Viettel and Mobiphone will raise their monthly 3G fees from VND50,000 to VND70,000. According to Tuoi Tre, Vinaphone will announce similar rate changes in the coming days.

Based on the comments in the Tuoi Tre article, some Vietnamese netizens are unhappy with the news, complaining about low service quality. Others viewed it as a small increase which still leaves Vietnam with some of the lowest 3G prices in the world.

[Tuoi Tre]