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Mobifone - Telecom Service Provider's Position

Essay by   •  December 16, 2012  •  Case Study  •  483 Words (2 Pages)  •  1,421 Views

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Mobifone's Position

- The first Telecom service provider:

Founded in 1993, Mobifone is the first telecom service provider (Tsp) in Vietnam. About 10

years ago, VNPT (the corporation managing Mobifone) with Mobifone and Vinaphone made monopoly

of Telecom market until Viettel entered in 2004. With a long time running and developing, Mobifone has

a stable amount of longtime and loyal customers.

- Always be in top 3 Tsps having biggest market share:

Subscription Growth from 1993 to 2010

Thanks to quick technological updates and service improvements, subscribers have kept

increasing. Mobifone had always had the biggest percentage of market share. In the first quarter of

2009, Mobifone took almost half of the market share. However, in 2010 and 2011, the percentage of

Mobifone's market share decreased. This may be a trick and not a true statistic. Because of resolution

25/2011/NĐ-CP and Competition Law which

will be studied more in the next part,

Mobifone reduces number of subscribers by

cutting off active but unused SIM Cards to

merge with Vinaphone. If VNPT can merge

them successful , it'll take nearly 50% of

market share. This is a brilliant step leads to

huge profits and power for Mobiphone when

just only VNPT and Viettel take 90% of

market share. Furthermore, Mobifone don't

have much significant competitors, it can

cooperate with Viettel to dominate over the

market and kill all the small firms.

Pie chart of market share - Quarter I 2009

- The largest income firm:

With the highest labor capacity: 6.7 billion dongs/ individual/ year in 2011 (1.5 times higher

than Viettel - 4.7 billion dongs). Mobifone always have the largest income among other Tsps. It earned

43.698 billion dongs last year (increase 18%).

- The most favorite Tsp:

Hanoi,

...

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