Telco titan told to focus on core business
The Ministry of Information and Communications has urged the country’s largest telco VNPT to focus on its core business and tap its potential to stay profitable in the increasingly competitive market.
The ministry, which recently took control of the Vietnam Post and Telecommunication Group (VNPT) under Government circular 90/2012/ND-CP, said it would carry out inspections of most of VNPT branches.
The move follows turbulence in VNPT over recent years.
The country’s oldest telecom service provider last year for the first time was surpassed by its rival military-run Viettel in profit and turnover.
VNPT in January adjusted its profit in 2012 to VND8.66 trillion (US$412.38 million) from the previously reported VND8.5 trillion (US$404.76 million).
However, the adjustment was unable to help VNPT to regain its crown as Viettel earned a profit of VND27 trillion (US$1.3 billion), up from VND20 trillion (US$953 million) in 2011 and triple VNPT profits.
Viettel’s earnings through December totalled an estimated VND140 trillion (US$6.6 billion), compared to VNPT’s projected total for the year of VND130 trillion (US$6.1 billion).
In addition, VNPT earnings depend on its two mobile network operators, MobiFone and Vinaphone, that contributed a turnover of VND66.3 trillion (US$3.2 billion), accounting for more than half of the group’s total.
Vinaphone earned revenue of VND22.579 trillion (US$1.09 billion), while Mobifone contributed the other 60 percent.