Vietnam’s Ministry of Information and Communications (MIC) announced this week that a second Mobile Virtual Network Operator (MVNO) has been granted authority to begin its operations, and these operations are expected to start within the next few weeks.
Vietnam is one of the newest MVNO markets in the world, with the first virtual operator – The Indochina Telecom Company (Itelecom) – launching operations in April.
A MVNO operator does not own any network infrastructure and instead repackages and resells, at lower rates, the network services of traditional mobile network operators (MNO). According to the MIC, a legal framework has been established for new virtual telecommunications networks to operate in the country.
The new MVNO announced by the MIC will become the seventh telecom provider in Vietnam and will be given a new prefix number. It will use the mobile phone infrastructure of Viet Nam Posts and Telecommunications Group (VNPT), which is State-owned and has the widest coverage in the country.
Nguyen Phong Nha, Deputy General Director of the MIC’s Authority of Telecommunications said the MVNO business model will save investment costs for businesses and avoid the waste of social resources, since the unused traffic and infrastructure of MNO’s can be exploited by carriers that do not have their own infrastructure.