Mr. Cao Anh Son, CEO of Viettel Telecommunications Corporation (Viettel Telecom), shared the journey of two decades of Viettel Mobile (October 15, 2004 – October 15, 2024).
Great Aspirations Lead to Great Achievements
After 20 years, the story of Viettel becoming the leading mobile network in Vietnam still inspires entrepreneurs. Can you share the success factors that contributed to Viettel’s entry into the market at that time?
Looking back, we can say that Viettel was quite fortunate to have the right combination of “timing, location, and people.” Vietnam presented a substantial potential market with over 80 million people, and the telephone penetration rate was only about 4-5%, leaving ample room for growth. The country’s economy was also entering a dynamic development phase, outpacing regional countries such as South Korea, Thailand, Singapore, Indonesia, Malaysia, and the Philippines. These were the objective conditions that presented Viettel with growth opportunities.
However, these opportunities were not exclusive to Viettel but were equally available to both the established players (MobiFone, Vinaphone, Sfone) and the new entrants (HTMobile, Gtel, EVNMobile) in the market. It was the internal factors and strategic choices that enabled Viettel to chart a distinct path, overcoming challenges to become the leading mobile network in the market.
At that time, Viettel was a small-scale company in the mobile telecommunications field, with limited capital, experience, and resources. However, Viettel’s aspirations were immense. We wanted to build a mobile network by Vietnamese, for Vietnamese. We aimed to compete on equal footing with the top enterprises in the market, despite being outscaled by them. We envisioned that every Vietnamese citizen would own a mobile phone. Two decades ago, these aspirations might have seemed unusual, but they fueled our collective drive to pursue a shared direction, despite the challenges.
Can you elaborate on how this aspiration enabled a small network operator like Viettel in 2004 to rise to the top in Vietnam?
Since its establishment in 1989, Viettel has always aspired to become a technology company serving the Vietnamese people. However, due to limited resources and conditions, we couldn’t turn this vision into reality immediately. We obtained a telecommunications business license in 1995 but only started our long-distance VoIP phone business in 2000.
Mobile telecommunications was a high-tech field at that time, requiring substantial investment. The capital accumulated by Viettel from four years of VoIP business and construction was not enough. When we started our mobile business, Viettel had only 150 base stations across three major cities. This number was modest compared to other networks. Sfone, which launched a year earlier, had already covered 15 provinces and cities, while the more established Vinaphone and MobiFone were present in all localities with thousands of base stations.
The Party Committee and Board of Directors of Viettel made strategic decisions, turning challenges into opportunities for breakthrough. Firstly, the determination to maintain self-reliance was crucial for Viettel to independently execute strategies aligned with our aspiration to “popularize mobile phones.” We aimed to bring mobile coverage to the entire country, including sparsely populated, remote, and border areas. I believe that if we had involved foreign investors, they would have likely focused on profitability metrics and might not have supported the expansion into less populated areas.
Our distinct strategy set Viettel apart. Many people know about our approach to purchasing equipment on deferred payment terms, which allowed us to rapidly expand our infrastructure across Vietnam. This was also an art of negotiation, ensuring cooperation while maintaining autonomy. The global telecommunications downturn presented an opportunity for Viettel to negotiate these deferred payment arrangements. However, it was our resilience during this downturn that propelled our strong growth.
In tandem with our infrastructure strategy, our business policies were geared towards making mobile services accessible to as many people as possible, with reasonable prices and no usage restrictions. This aspiration permeated every Viettel employee, fostering a competitive atmosphere and a dedication to self-sacrifice. Step by step, we overcame capital constraints and achieved breakthroughs in our business, even amidst challenges.
All these factors became prerequisites for Viettel’s remarkable growth, enabling us to become one of the top mobile networks in Vietnam within just four years and maintain this position until today.
At what point did Viettel no longer consider itself a “small network”?
To answer this question, let’s revisit our history. From the early days of our business, the goals we set were unique: “A mobile phone for every Vietnamese citizen.” Later, we set similar targets: “A smartphone for every Vietnamese,” “High-speed Internet access for every household,” and so on. You can see that our strategic objectives were not focused on market share, profits, or revenue but were closely aligned with the country’s goals. This demonstrates how Viettel has always moved in tandem with the nation’s development orientation and our desire to contribute to its economic and social progress.
With such objectives, Viettel has always taken on significant societal and national challenges. For example, when we achieved nationwide coverage, we committed to supporting disadvantaged groups. Integrating business with social responsibility has been our approach to achieving our goals.
I believe that Viettel has never been a small network because our aspirations have always been grand, even when our company was still small in scale. By setting ambitious goals, negotiating equitably, and embracing challenges head-on, we established our position as a formidable enterprise from the very beginning.
When mobile subscriptions exceeded the population, the term “telecom saturation” was often mentioned. How did Viettel respond to this situation?
In my opinion, the telecommunications field does not experience “saturation,” but rather a shift from traditional telecommunications to digital telecommunications. Telecommunication services, which used to be the primary offering, are now evolving into an enabling platform. In other words, “telecom saturation” only applies to a specific service or technology. Fifteen years ago, 2G mobile phones primarily served voice calls and SMS. By 2015, this technology had already reached almost 100% of the population, indicating the “saturation” of 2G.
At that juncture, Viettel set a different goal: to popularize data services so that people could access the digital world. Throughout the 3G and 4G implementation phases, Viettel brought about a second revolution by making smartphones accessible to all Vietnamese citizens and delivering broadband mobile connectivity nationwide.
In 2018, only about 54% of customers used mobile data, but today, this figure has soared to over 92% (2024), surpassing the global and Asian averages (82%) – according to GSMA Intelligence 2024. This indicates that while 4G is nearing saturation, the emergence of 5G ushers in a new era, marking the beginning of a phase to popularize smart connectivity for every Vietnamese citizen.
Maturing Through Service to the Motherland
Is Viettel ready for a new chapter in telecommunications?
Absolutely! But this time, it will be different. Viettel Telecom has shifted its business strategy from competition to collaboration. Adjusting our business perspective in this new phase aligns with our role as a market leader.
Viettel will ignite a smart connectivity boom. Our role in this new phase is to continue pioneering the construction of digital infrastructure, ensuring super-broadband and hyper-connected telecommunications infrastructure, as well as clean, open, and secure data infrastructure. This period also marks a robust transition for Viettel Telecom towards creating digital applications and platforms that hold significance for societal development.
What is certain is that these platforms will be connected by broadband and cutting-edge technology. Leveraging the foundations built by Viettel, society (including enterprises and independent developers) will be free to innovate and create products for users. For example, autonomous vehicles, smart factories, and zero-latency television will be developed by society, offering services built upon Viettel’s platforms.
The resonance and shared value creation that Viettel Telecom brings to society will fuel the development of a digital economy, digital society, and digital government.
What are the specific goals of Viettel Telecom in the digital era?
As mentioned earlier, our strategy remains closely aligned with the Party and Government’s goals for national development. In this new phase, Viettel continues to pioneer the construction of infrastructure for the country’s digital transformation, including critical infrastructures such as 5G/6G, super-broadband fixed network infrastructure, IoT infrastructure, and data infrastructure. Ensuring rapid and extensive coverage of digital infrastructure will accelerate the country’s digital transformation, boost the growth of the digital economy, and elevate the lives of our citizens. This will also be the driving force for telecommunications growth in the coming years.
Initially, 5G will serve not only individual customers but also enterprises, government agencies, and other stakeholders to foster social development and support digital platforms for the advancement of the digital economy, digital society, and digital government. Of course, there were other platforms before 5G to drive development. Still, the technological advantages of 5G will accelerate this process, making it more convenient and timely. Viettel Telecom aims to bring 5G coverage to over 90% of the urban population during the initial 5G launch phase.
In parallel with building digital infrastructure, Viettel Telecom is also developing digital service platforms with goals to promote accessibility and collaboration. The TV360 digital television platform embodies our aspiration to deliver high-quality digital television services to every citizen and household. The Viettel Home Smarthome platform is designed to seamlessly connect all smart devices within a household, making life more convenient, modern, and secure. Similarly, the SME Hub platform aims to aggregate all digital services for businesses on a single platform, propelling their digital transformation journey.
In the past, when telecommunications was primarily about voice and calls, “listening to understand the smallest needs of customers” was a well-known philosophy that contributed to Viettel’s success. Is this philosophy still relevant in the digital age?
When it comes to listening, people often think about the aspect of customer feedback: listening to better serve and care for customers. At Viettel Telecom, we listen to understand our customers’ needs. From this understanding, we create services that cater to those needs.
Previously, Viettel offered a limited range of telecommunications-related services. Now, we integrate telecommunications and information technology to serve diverse customer segments, including individuals, enterprises, households, government agencies, and ministries. This is a testament to our understanding of our customers’ inner desires and our ability to create suitable products. We actively listen and strive to understand our customers’ needs, even before they express them.
In the digital age, customer expectations are more demanding, and the channels for information exchange are more diverse and complex. Telecommunications providers need to invest in digital tools to proactively listen to their customers. By actively listening and reaching out to customers to help them resolve their issues, network operators can foster stronger connections with their subscribers.
Thank you for your valuable insights, Mr. Son!
