Nov 26, 2011
Phone war stops, frustration remains in Laos
http://www.chinadaily.com.cn/xinhua/2011-11-23/content_4464774.html
VIENTIANE, November 23 (Xinhua) -- Laos' phone war came to a sudden end on Wednesday as three local telecom operators lifted their boycott and restore their connections with Beeline, which had been at the center of an ongoing dispute regarding telecom regulations.
VimpelCom, one of the world's biggest telecom providers operating under the Beeline brand name in Laos, had been disconnected from Lao Telecommunications Company (LTC), Enterprise of Telecommunications Lao (ETL) and Star Telecom Co. Ltd. (UNITEL) since October 13.
Beeline's relations with the three rival operators turned sour after it was found to be offering special promotions in breach of an agreement instigated by the Lao Ministry of Posts and Telecommunications that limits competition between operators.
This resulted in cross-network call blocking to and from Beeline numbers by the other three operators. Since mid-October, Beeline numbers had only been able to contact others on the Beeline network, making life difficult for all phone users. Incoming calls to Beeline numbers from abroad were similarly affected because LTC controls most of the international lines.
In August, the Ministry of Posts and Telecommunications ordered telecom companies in Laos to stop offering special promotions, such as free call credits, sim cards and messaging services, in order to increase profits. On October 6 all four telecom operators had agreed to stop offering such promotions in a move to shore up falling revenues in the fiercely competitive market.
The boycott was aimed at forcing Beeline to halt its free call promotion and comply with the agreement.
The Ministry of Posts and Telecommunications had twice staged urgent meetings between the four operators but both failed to reach any agreement.
However, in the latest round of negotiations the four operators agreed to revise fixed mobile phone service charges, which will provide an opportunity for them to conduct marketing campaigns that will not adversely affect revenues and impact negatively on the operations of other operators.
VimpelCom entered the Lao market in March this year, when it acquired a 78 percent stake in Millicom Lao Co. Ltd., then operating as Tigo, with the remaining 22 percent owned by the Lao government. In June, the business name was changed to VimpelCom Lao Co. Ltd, shortly followed by the rebranding to Beeline. As of the end of May, the company had more than 500,000 subscribers and held a market share of approximately 27 percent.
It is unclear just how deeply the boycott has affected Beeline' s customer base and business performance. VimpelCom reported its customer base stood at 500,000, down from 536,000 in the second quarter in Laos. However, the company declined to provide updated figures or more information related to the situation when contacted by Xinhua.
What is clear is that the boycott affected phone users in a multitude of ways. Many had to buy additional sim cards, which cost around two U.S. dollars, just to remain contactable, frustrating businesses and individuals alike.
Hatsatdy, 32, who works for a foreign company, told Xinhua, "I changed my Beeline number after I found out about the issue, but it was hard for me to get in contact with my boss, friends, and family members. I got the feeling that these companies didn't really care about us."
Andy, 36, an English national working for a local company, said the telecom operators shouldn't hold such influence over people's lives.
Khammoun, 46, self-employed, said: "It was not a big deal for me. As I have four mobile phones and numbers, people can get me anytime they want. In Laos many people are prepared with more than one number, just in case there's no signal from one operator. All my family members have at least two numbers at hand."
According to information provided by telecom operators to the Ministry of Posts and Telecommunications, a staggering ten million mobile phone numbers are in use in the country of just over six million people.
An insider analysis of the Lao telecommunication industry suggests that it lacks a strong foundation to support fast growth, and that clear and adequate policy regarding licensing for new entrants, infrastructure sharing, interconnection, and universal access must be set up before it can expand to the next level, otherwise the market will collapse.
LTC reported in February that its pre-tax revenue of about 733 billion kip (around 91 million U.S. dollars) for 2010 was 19 percent lower than targeted and a drop of 17 percent from 2009.
According to the state-owned Vientiane Times, ETL's reported income of 422 billion kip (about 53 million U.S. dollars) for 2010 was about 90 percent of its target, but down 8 percent compared to 2009.
The ministry also reported that tax contributions from the telecommunications sector totaled about 1.6 trillion kip (around 199.2 million U.S. dollars) in 2010, down from over 1.93 trillion kip (about 240 million U.S. dollars) in 2009, leading it to enforce stricter regulations on telecom operators to ensure fair marketing campaigns are used.
VimpelCom is a major Russian telecommunications services operator, offering a wide range of wireless telecommunication services and fixed broadband in Russia and former Soviet Union countries such as Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia and Kyrgyzstan. The company also has subsidiaries in Vietnam, Cambodia, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada.
The decision by the Russian firm to enter the Lao market was part of its plan to expand its operations in Asian region. The company already has telecommunications operations under the Beeline brand in Vietnam.
Of the other three operators, LTC is a joint venture established in 1996 between the Lao government and Shenington Investment Thai, which hold 51 percent and 49 percent respectively. ETL is 100 percent owned by the Lao government from 2000, while UNITEL, set up in 2008, is 51 percent owned by the Lao government and 49 percent by Vietnam's Viettel Global.
VIENTIANE, November 23 (Xinhua) -- Laos' phone war came to a sudden end on Wednesday as three local telecom operators lifted their boycott and restore their connections with Beeline, which had been at the center of an ongoing dispute regarding telecom regulations.
VimpelCom, one of the world's biggest telecom providers operating under the Beeline brand name in Laos, had been disconnected from Lao Telecommunications Company (LTC), Enterprise of Telecommunications Lao (ETL) and Star Telecom Co. Ltd. (UNITEL) since October 13.
Beeline's relations with the three rival operators turned sour after it was found to be offering special promotions in breach of an agreement instigated by the Lao Ministry of Posts and Telecommunications that limits competition between operators.
This resulted in cross-network call blocking to and from Beeline numbers by the other three operators. Since mid-October, Beeline numbers had only been able to contact others on the Beeline network, making life difficult for all phone users. Incoming calls to Beeline numbers from abroad were similarly affected because LTC controls most of the international lines.
In August, the Ministry of Posts and Telecommunications ordered telecom companies in Laos to stop offering special promotions, such as free call credits, sim cards and messaging services, in order to increase profits. On October 6 all four telecom operators had agreed to stop offering such promotions in a move to shore up falling revenues in the fiercely competitive market.
The boycott was aimed at forcing Beeline to halt its free call promotion and comply with the agreement.
The Ministry of Posts and Telecommunications had twice staged urgent meetings between the four operators but both failed to reach any agreement.
However, in the latest round of negotiations the four operators agreed to revise fixed mobile phone service charges, which will provide an opportunity for them to conduct marketing campaigns that will not adversely affect revenues and impact negatively on the operations of other operators.
VimpelCom entered the Lao market in March this year, when it acquired a 78 percent stake in Millicom Lao Co. Ltd., then operating as Tigo, with the remaining 22 percent owned by the Lao government. In June, the business name was changed to VimpelCom Lao Co. Ltd, shortly followed by the rebranding to Beeline. As of the end of May, the company had more than 500,000 subscribers and held a market share of approximately 27 percent.
It is unclear just how deeply the boycott has affected Beeline' s customer base and business performance. VimpelCom reported its customer base stood at 500,000, down from 536,000 in the second quarter in Laos. However, the company declined to provide updated figures or more information related to the situation when contacted by Xinhua.
What is clear is that the boycott affected phone users in a multitude of ways. Many had to buy additional sim cards, which cost around two U.S. dollars, just to remain contactable, frustrating businesses and individuals alike.
Hatsatdy, 32, who works for a foreign company, told Xinhua, "I changed my Beeline number after I found out about the issue, but it was hard for me to get in contact with my boss, friends, and family members. I got the feeling that these companies didn't really care about us."
Andy, 36, an English national working for a local company, said the telecom operators shouldn't hold such influence over people's lives.
Khammoun, 46, self-employed, said: "It was not a big deal for me. As I have four mobile phones and numbers, people can get me anytime they want. In Laos many people are prepared with more than one number, just in case there's no signal from one operator. All my family members have at least two numbers at hand."
According to information provided by telecom operators to the Ministry of Posts and Telecommunications, a staggering ten million mobile phone numbers are in use in the country of just over six million people.
An insider analysis of the Lao telecommunication industry suggests that it lacks a strong foundation to support fast growth, and that clear and adequate policy regarding licensing for new entrants, infrastructure sharing, interconnection, and universal access must be set up before it can expand to the next level, otherwise the market will collapse.
LTC reported in February that its pre-tax revenue of about 733 billion kip (around 91 million U.S. dollars) for 2010 was 19 percent lower than targeted and a drop of 17 percent from 2009.
According to the state-owned Vientiane Times, ETL's reported income of 422 billion kip (about 53 million U.S. dollars) for 2010 was about 90 percent of its target, but down 8 percent compared to 2009.
The ministry also reported that tax contributions from the telecommunications sector totaled about 1.6 trillion kip (around 199.2 million U.S. dollars) in 2010, down from over 1.93 trillion kip (about 240 million U.S. dollars) in 2009, leading it to enforce stricter regulations on telecom operators to ensure fair marketing campaigns are used.
VimpelCom is a major Russian telecommunications services operator, offering a wide range of wireless telecommunication services and fixed broadband in Russia and former Soviet Union countries such as Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia and Kyrgyzstan. The company also has subsidiaries in Vietnam, Cambodia, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada.
The decision by the Russian firm to enter the Lao market was part of its plan to expand its operations in Asian region. The company already has telecommunications operations under the Beeline brand in Vietnam.
Of the other three operators, LTC is a joint venture established in 1996 between the Lao government and Shenington Investment Thai, which hold 51 percent and 49 percent respectively. ETL is 100 percent owned by the Lao government from 2000, while UNITEL, set up in 2008, is 51 percent owned by the Lao government and 49 percent by Vietnam's Viettel Global.
Apr 5, 2011
Vietnam to attract foreign investment in ICT
http://en.www.info.vn/hi-tech/it-and-internet/22445-vietnam-to-attract-foreign-investment-in-ict-.html
Vietnam targets to raise the proportion of Information and Communications Technology (ICT)’s value to GDP from 8-10 percent.
Vietnam will create the best condition for businesses to invest in the ICT, said Deputy Prime Minister Nguyen Thien Nhan at an international conference in Hanoi on March 31. The conference was held to develop Vietnam into becoming a strong ICT country.
Mr Nhan said that the Party, State and Government have paid great attention to developing ICT. In recent years, the industry has made significant contributions to the national development, reaching a total of US$7.4 billion in 2010.
The project made a turning point in the sector with an aim to develop ICT into a key economic sector. The project set out specific targets that Vietnam will become a top ten country in supplying software and digital manufacturing services as well as joining the top 40 countries in the world to train ICT students to international standards.
To obtain the target, Vietnam needs cooperation from international partners in infrastructure development, technological transfer and human resource training.
Mr Nhan emphasised that many foreign investors consider Vietnam a safe destination because of its political stability and cheap, abundant and industrious labour force. To improve the prestige, the Government will pay more attention to administration reform to create the best conditions for businesses to invest in ICT.
Director of the US Agency for International Development (USAID) in Vietnam, Frank Donovan said Vietnam is one of ten countries with ICT development prospects which will help the country to develop its economy in the future.
Vietnam targets to raise the proportion of Information and Communications Technology (ICT)’s value to GDP from 8-10 percent.
Vietnam will create the best condition for businesses to invest in the ICT, said Deputy Prime Minister Nguyen Thien Nhan at an international conference in Hanoi on March 31. The conference was held to develop Vietnam into becoming a strong ICT country.
Mr Nhan said that the Party, State and Government have paid great attention to developing ICT. In recent years, the industry has made significant contributions to the national development, reaching a total of US$7.4 billion in 2010.
The project made a turning point in the sector with an aim to develop ICT into a key economic sector. The project set out specific targets that Vietnam will become a top ten country in supplying software and digital manufacturing services as well as joining the top 40 countries in the world to train ICT students to international standards.
To obtain the target, Vietnam needs cooperation from international partners in infrastructure development, technological transfer and human resource training.
Mr Nhan emphasised that many foreign investors consider Vietnam a safe destination because of its political stability and cheap, abundant and industrious labour force. To improve the prestige, the Government will pay more attention to administration reform to create the best conditions for businesses to invest in ICT.
Director of the US Agency for International Development (USAID) in Vietnam, Frank Donovan said Vietnam is one of ten countries with ICT development prospects which will help the country to develop its economy in the future.
Mar 1, 2011
ETL's income falls short of target but operations grow
ETL's income falls short of target but operations grow
A major national telecom provider, Enterprise of Telecommunications Lao (ETL), has reported that income for 2010 fell by about 8 percent compared to the previous year.
“ETL received about 422 billion kip (almost US$53 million), about 90 percent of the company's target,” company Director General, Mr Khammouane Xomsihapanya, reported on Friday.
Mr Khammouane Xomsihapanya.
The income was mainly from mobile phone services, accounting for 77.5 percent of the total.
The drop in earnings was attributed to growing competition in the telecom sector, in which large telecom providers are jostling for a greater market share. The main areas of competition were in service fees and product costs.
“Also, expenditure was up about 6 percent, compared to payments in 2009,” Mr Khammouane pointed out at the company's annual meeting in Vientiane.
Expenditure was about 399 billion kip (almost US$50 million) or about 95 percent of the company's target.
Operations were unable to meet those planned in 2010 but services and network expansion keep on growing and remain profitable, to the tune of 23 billion kip according to a press release.
“We also contributed about 72 billion kip to national revenue,” Mr Khammouane said. “This was about 3.2 percent down from 2009.”
The company has succeeded in many areas, including the establishment of four additional branches and service units in the provinces last year.
Currently, it has 10 branches and six service units, more than 730 staff, 914 mobile phone base stations, and network services in cities, rural villages and overseas.
It now holds about 37 percent of the market share in the telecommunications sector, the press release noted.
Mr Khammouane said the company now has mobile phone services covering 5,683 villages in 143 districts, or about 65 percent of villages nationwide.
He said it currently has over 985,000 mobile phone customers, 3.6 percent up from 2009. It also has over 18,000 fixed line phone customers, an increase of about 3 percent, and about 3,500 Internet customers, an increase of 156 percent from 2009.
Laos currently has four tele-communication companies: Lao Telecommunications Company (LTC), ETL, Star Telecom and the Millicom Lao Company.
Until the mid-1990s, Laos had only two telephone companies.
Then, in 1995, LTC signed an agreement with the government to become the only supplier of telephone services for the next five years.
When the contract expired in 2000, ETL was established. Millicom Lao, which provides only mobile phone services, came into operation in 2003 and Star Telecom launched in 2008.
Star Telecom is a joint venture between Lao Asia Telecom State Enterprise, which opened in 2002, and Viettel Global of Vietnam.
By Phonsavanh Vongsay
(Latest Update March 1 , 2011)
A major national telecom provider, Enterprise of Telecommunications Lao (ETL), has reported that income for 2010 fell by about 8 percent compared to the previous year.
“ETL received about 422 billion kip (almost US$53 million), about 90 percent of the company's target,” company Director General, Mr Khammouane Xomsihapanya, reported on Friday.
Mr Khammouane Xomsihapanya.
The income was mainly from mobile phone services, accounting for 77.5 percent of the total.
The drop in earnings was attributed to growing competition in the telecom sector, in which large telecom providers are jostling for a greater market share. The main areas of competition were in service fees and product costs.
“Also, expenditure was up about 6 percent, compared to payments in 2009,” Mr Khammouane pointed out at the company's annual meeting in Vientiane.
Expenditure was about 399 billion kip (almost US$50 million) or about 95 percent of the company's target.
Operations were unable to meet those planned in 2010 but services and network expansion keep on growing and remain profitable, to the tune of 23 billion kip according to a press release.
“We also contributed about 72 billion kip to national revenue,” Mr Khammouane said. “This was about 3.2 percent down from 2009.”
The company has succeeded in many areas, including the establishment of four additional branches and service units in the provinces last year.
Currently, it has 10 branches and six service units, more than 730 staff, 914 mobile phone base stations, and network services in cities, rural villages and overseas.
It now holds about 37 percent of the market share in the telecommunications sector, the press release noted.
Mr Khammouane said the company now has mobile phone services covering 5,683 villages in 143 districts, or about 65 percent of villages nationwide.
He said it currently has over 985,000 mobile phone customers, 3.6 percent up from 2009. It also has over 18,000 fixed line phone customers, an increase of about 3 percent, and about 3,500 Internet customers, an increase of 156 percent from 2009.
Laos currently has four tele-communication companies: Lao Telecommunications Company (LTC), ETL, Star Telecom and the Millicom Lao Company.
Until the mid-1990s, Laos had only two telephone companies.
Then, in 1995, LTC signed an agreement with the government to become the only supplier of telephone services for the next five years.
When the contract expired in 2000, ETL was established. Millicom Lao, which provides only mobile phone services, came into operation in 2003 and Star Telecom launched in 2008.
Star Telecom is a joint venture between Lao Asia Telecom State Enterprise, which opened in 2002, and Viettel Global of Vietnam.
By Phonsavanh Vongsay
(Latest Update March 1 , 2011)
Feb 6, 2011
Lao Telecom to inject over 200 bln kip into network expansion
:: KPL :: Lao News Agency
Lao Telecom to inject over 200 bln kip into network expansion
(KPL) The Lao Telecom will invest in the expansion of its network this year for a total sum of 240 billion kip or USD 30 million.
Under the 2011 plan, the company – a major telecommunication service supplier, also sets its target of income growth by 30 per cent of the 2010’s total income and increases its tax obligation and dividend by 32.5 per cent.
The plan was unveiled at its an annual meeting held in Vientiane Capital on 2 February, under the co-chairmanship of Minister to the Prime Minister’s Office, Ms. Bounpheng Mounphosay, Minister to Prime Minister’s Office, Mr. Khamlouad Sithlakhone who is also Director of the National Post and Telecommunication Office, Minister to the Prime Minister’s Office, Mr. Saisengly Tengbliachue who is also Head of the Business Overhaul Committee.
The meeting was participated by over 200 officials of the Lao Telecom.
The meeting has unanimously endorsed a report of 2010 business operations and 2011 direction of the company, which was proposed by Director of Lao Telecom, Mr. Thongsay Sanesaya.
Over the past one year, the Lao Telecom has expanded its telecom network as set by the target, provided various service options to customers, improved internet via the 3G mobile up from 7 to 14 megabytes per minute offering various options of multimedia including sound and picture, Mr Thongsay highlighted. All activities proved the accomplishments of the Lao Telecom in many fields over the past one year.
Presently, the Lao Telecom state enterprise is developing high-speed internet with support capacity of the 4G mobile that will serve customers in the future, he went on.
The company has provided information to customers through the call centre No 101 and one stop service ISO 9001: 2008. This certifies that the company to be number one for providing telecom service to customers in society. In 2010, the company generated income of 733.3 billion kip after tax payment, and had net profit of 145.7 billion kip and paid taxes of 284.16 billion kip to the government.
The company holds 49 per cent in the market share with more than 1.5 million of Lao Telecom phone numbers.
Last year, the Lao Telecom approved its plan of investment expansion phase 18 with a total investment of USD 27.75 million.
Lao Telecom to inject over 200 bln kip into network expansion
(KPL) The Lao Telecom will invest in the expansion of its network this year for a total sum of 240 billion kip or USD 30 million.
Under the 2011 plan, the company – a major telecommunication service supplier, also sets its target of income growth by 30 per cent of the 2010’s total income and increases its tax obligation and dividend by 32.5 per cent.
The plan was unveiled at its an annual meeting held in Vientiane Capital on 2 February, under the co-chairmanship of Minister to the Prime Minister’s Office, Ms. Bounpheng Mounphosay, Minister to Prime Minister’s Office, Mr. Khamlouad Sithlakhone who is also Director of the National Post and Telecommunication Office, Minister to the Prime Minister’s Office, Mr. Saisengly Tengbliachue who is also Head of the Business Overhaul Committee.
The meeting was participated by over 200 officials of the Lao Telecom.
The meeting has unanimously endorsed a report of 2010 business operations and 2011 direction of the company, which was proposed by Director of Lao Telecom, Mr. Thongsay Sanesaya.
Over the past one year, the Lao Telecom has expanded its telecom network as set by the target, provided various service options to customers, improved internet via the 3G mobile up from 7 to 14 megabytes per minute offering various options of multimedia including sound and picture, Mr Thongsay highlighted. All activities proved the accomplishments of the Lao Telecom in many fields over the past one year.
Presently, the Lao Telecom state enterprise is developing high-speed internet with support capacity of the 4G mobile that will serve customers in the future, he went on.
The company has provided information to customers through the call centre No 101 and one stop service ISO 9001: 2008. This certifies that the company to be number one for providing telecom service to customers in society. In 2010, the company generated income of 733.3 billion kip after tax payment, and had net profit of 145.7 billion kip and paid taxes of 284.16 billion kip to the government.
The company holds 49 per cent in the market share with more than 1.5 million of Lao Telecom phone numbers.
Last year, the Lao Telecom approved its plan of investment expansion phase 18 with a total investment of USD 27.75 million.
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