FPT Retail suddenly jumps into the mobile market

FPT Retail owns a nationwide retail network with more than 800 FPT Shop stores and nearly 1,300 Long Chau pharmaceutical stores.

Accordingly, FPT Retail (a subsidiary of FPT) is allowed to provide telecommunications services on the terrestrial mobile telecommunications network, including telecommunications services on the terrestrial mobile telecommunications network with IMT-2000 and IMT-Advanced standards provided to telecommunications subscribers who sign telecommunications service contracts with enterprises. FPT Retail is allowed to provide these services through the terrestrial mobile telecommunications network nationwide. In particular, focusing on the development orientation of subscribers using 3G/4G or higher technologies.

Thus, FPT Retail will provide virtual mobile networks and use the infrastructure of other mobile network operators such as Viettel, VNPT, MobiFone... Currently, FPT Retail has not provided information on which network operator it will choose to use the infrastructure.

In 2010, the Ministry of Information and Communications also licensed a number of virtual mobile networks such as VTC, FPT... According to the license, VTC will provide mobile information services on EVN Telecom's 3G infrastructure and roam with domestic 2G networks. At that time, VTC Digicom (a subsidiary of VTC) said that the company will provide mobile information services on EVN Telecom's 3G infrastructure. In addition to this network, VTC will study roaming options with other mobile networks to expand service coverage for customers - places where EVN Telecom's 3G network has not yet reached. Although FPT was licensed for a virtual mobile network, at that time it did not have a business plan and did not cooperate with network operators with infrastructure.

Currently, FPT Retail has entered the mobile telecommunications market with many advantages when owning a nationwide retail network with more than 800 FPT Shop stores and nearly 1,300 Long Chau pharmaceutical stores.

Every year, FPT Retail sells over 1.5 million smartphones and IoT devices of all kinds and is an agent providing mobile telecommunications services to hundreds of thousands of customers. In addition, FPT Retail has the advantage of exploiting FPT's diverse digital service ecosystem to develop its business. FPT is a partner of many global technology companies and has provided many software solutions, hardware, and information technology infrastructure services to Vietnamese and international mobile telecommunications companies for decades.

According to information from FPT, the time to deploy a technical system for a new virtual mobile network will take from 12 to 15 months. FPT Retail, with its technological advantages and support from FPT Corporation, hopes to shorten this time and soon provide services to customers.

Up to now, the Ministry of Information and Communications has licensed 5 enterprises to provide virtual mobile network services in Vietnam, including Dong Duong Telecom, Mobicast, ASIM, Digilife and FPT Retail. According to the Department of Telecommunications, as of April 30, the number of mobile phone subscribers of these networks has grown to 2.65 million, accounting for 2.1% of the total number of subscribers in the whole market.

Currently, the Vietnamese mobile market has low ARPU and is facing strong competition from OTT services, so a new wind is needed. The participation of virtual mobile network operators in providing services is expected to contribute to diversifying the types of services serving digital transformation, in the fields of finance, education, health, entertainment, etc.

Mr. Nguyen Phong Nha, Deputy Director of the Department of Telecommunications (Ministry of Information and Communications), said that the virtual mobile network model is a new model in Vietnam. This model can quickly deploy services nationwide, save infrastructure and resources, and will bring new value to customers.

In terms of advantages, virtual mobile networks do not have to invest in infrastructure but only buy wholesale traffic from network operators with infrastructure. Thus, virtual mobile networks only focus on business to design products suitable for customers and will choose a niche market that they have strengths to target, not as broad as network operators with infrastructure.

Masan's virtual mobile network changes "general" Ms. Nguyen Thi Ngoc Anh will replace Mr. Tran Nam Trung as General Director (CEO) of Mobicast, the owner of Wintel mobile network.

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