“Viettel Mobile Network: Growing Alongside a Nation’s Fortunes”

Mr. Cao Anh Son, CEO of Viettel Telecommunications Corporation (Viettel Telecom), shared the journey of two decades of Viettel Mobile (15/10/2004 – 15/10/2024).

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 of Viettel when entering the market at that time?

Looking back, we could say that Viettel was quite fortunate to have the right combination of “timing, location, and people.” Vietnam was a relatively large market with over 80 million people, and the telephone penetration rate was only about 4-5% – leaving much room for growth. The country’s economy was also entering a dynamic development phase, with a higher growth rate than regional countries such as South Korea, Thailand, Singapore, Indonesia, Malaysia, and the Philippines. These were the objective conditions that provided Viettel with growth opportunities.

However, this opportunity was not exclusive to Viettel but was equally shared among the existing networks (MobiFone, Vinaphone, Sfone) and the new entrants (HTMobile, Gtel, EVNMobile). It was the internal factors that enabled Viettel to formulate the right strategies and take a different approach to overcome challenges and 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. They wanted to build a mobile network by Vietnamese people, compete fairly with the top enterprises in the market, and ensure that every Vietnamese citizen had access to a mobile phone. Twenty years ago, these were strange ambitions, but they became the driving force for everyone to unite and move in one direction, despite the difficulties.

Can you elaborate on how this aspiration helped a small network like Viettel in 2004 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 at that time, they couldn’t turn this vision into reality immediately. Viettel obtained a telecommunications business license in 1995 but only started its long-distance VoIP phone business in 2000.

Mobile telecommunications was a high-tech field that required substantial investment. The capital accumulated by Viettel from four years of VoIP business and construction was not enough. When they started their mobile business, Viettel had only 150 base stations in 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 wise strategic decisions, turning challenges into opportunities for breakthrough. Firstly, the determination to be self-reliant was crucial for Viettel to independently execute strategies aligned with their aspiration to “popularize mobile phones,” ensuring mobile network coverage across the country, including sparsely populated, remote, and border areas. I believe that if there had been foreign investors involved, they would have likely focused on profitability and might not have agreed to cover areas with fewer customers.

The right strategy created the difference for Viettel Mobile. It is well-known that Viettel negotiated to buy equipment on deferred payment terms of 2-4 years to achieve a breakthrough in infrastructure across Vietnam. This was also an art of negotiation, ensuring cooperation while maintaining autonomy. The global telecommunications downturn provided Viettel with the opportunity to make these deferred payments, and this downturn became a springboard for Viettel’s robust development.

In tandem with the infrastructure strategy, business policies were also geared towards making mobile phones more accessible to the population through reasonable prices, unlimited usage, etc. This aspiration was also instilled in every officer and employee of Viettel, creating a competitive atmosphere of dedicated work. Step by step, Viettel overcame capital constraints and achieved breakthroughs in business, even amid challenges.

All these factors became prerequisites for Viettel’s remarkable growth, enabling them to become one of the top mobile networks in Vietnam within just four years and maintain this position until today.

When did Viettel stop considering itself a “small network”?

To answer this question, let’s look back at our history. From the early days of our business, the goals set by Viettel were already unique: “A mobile phone for every Vietnamese citizen.” Later, similar objectives were set: “A smartphone for every Vietnamese,” “High-speed Internet access for every household,” etc. We can see that Viettel’s strategic goals are not about market share, profits, or revenue but are closely aligned with the country’s goals. This demonstrates Viettel’s commitment to walking alongside the nation’s development orientation and contributing to its economic and social progress.

With such objectives, Viettel has always taken on significant societal and national issues. For example, when we achieved “full coverage,” it meant that Viettel was ready to support disadvantaged groups. Combining 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 the company’s scale was modest. Daring to set ambitious goals, standing firm in negotiations for equitable cooperation, and facing challenges head-on to achieve self-reliance—this is the spirit that established Viettel’s position from its inception.

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 have the concept of “saturation,” but there is a shift from traditional telecommunications to digital telecommunications. Telecommunication services, which used to be the primary offering, will now serve as an enabler for other services. In other words, “telecom saturation” is accurate only when referring to a specific service or technology. Fifteen years ago, 2G mobile phones mainly served voice calls and SMS. In 2015, when the penetration rate of this service reached almost 100% of the population, we could say that 2G technology had “saturated.”

At that time, Viettel set a different goal: to popularize data services so that people could access digital technology. Throughout the 3G and 4G implementation phases, Viettel brought about the second revolution—popularizing smartphones and bringing mobile broadband connections to all Vietnamese citizens.

In 2018, only about 54% of customers used mobile data, but now this number has risen to over 92% (2024), higher than the global and Asian averages (82%) – according to GSMA Inteligence 2024. This indicates that 4G is approaching saturation, but the emergence of 5G opens a new chapter, initiating the phase of popularizing smart connections for every Vietnamese citizen.

Maturing Through Service to the Motherland

Is Viettel ready for a new chapter in telecommunications?

Definitely! But this time, it will be different. Viettel Telecom has shifted its business strategy from competition to collaboration. Changing the business perspective in this new era aligns with our role as a market-leading enterprise.

Viettel will create a smart connection boom. Our role in this new phase is to continue pioneering and leading the construction of digital infrastructure, ensuring super-broadband and super-connected telecommunications infrastructure, clean, open, and secure data infrastructure. This period also marks a strong shift for Viettel Telecom towards creating digital applications and platforms that have a meaningful impact on societal development.

What is certain is that these platforms will be connected by broadband, the most advanced technology. Based on the foundations built by Viettel, society (enterprises, independent developers) will be free to innovate and create products for users. For example, self-driving cars, smart factories, zero-latency television, and all these services will be provided by society, creating products on Viettel’s platforms.

The resonance and co-creation of value is the boom that Viettel Telecom brings to society to develop the digital economy, digital society, and digital government.

What are the specific goals of Viettel Telecom in the digital era?

As I mentioned, our strategy remains closely aligned with the Party and Government’s goals for national development. Viettel’s role in this new phase is to continue pioneering and leading the construction of infrastructure for the country’s digital transformation, including critical infrastructures: 5G/6G infrastructure, 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 digital economy, and elevate people’s lives. This is also the driving force for telecommunications growth in the coming years.

Initially, 5G will serve not only individual customers but also enterprises, governments, and state agencies to develop society and support digital platforms for the development of the digital economy, digital society, and digital government. Of course, there were other platforms for development before 5G. Still, the technological advantages of 5G will accelerate this process, making it more convenient and faster. Viettel Telecom aims to provide 5G coverage to over 90% of the urban population during the 5G launch phase.

In parallel with building digital infrastructure, Viettel Telecom is also developing digital service platforms with the goals of promoting accessibility and collaboration. The TV360 digital television platform carries the aspiration to bring high-quality digital television services to every citizen and household. The Viettel Home Smarthome platform is designed to connect all smart devices in a household more conveniently, modernly, and safely. Similarly, the SME Hub platform aims to connect all digital services for businesses on one platform, fostering the digital transformation of enterprises.

In the past, when telecommunications was mainly about calling and messaging, the philosophy of “listening to understand the smallest needs of customers” was famous for helping Viettel succeed. Is this philosophy still valid 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 to offer them.

Previously, Viettel only had a few telecommunications-related services, but now we have integrated telecommunications and information technology to serve diverse customer segments, including individuals, enterprises, households, agencies, ministries, and the government. This is how we understand and grasp our customers’ inner needs to provide suitable products. We actively listen to understand our customers’ needs, even before they express them.

In the digital age, customers’ demands are becoming more stringent, and the environment for information exchange is becoming more diverse and complex. Telecommunication companies need to invest in multiple digital tools to be more proactive in listening to their customers. Actively listening to customers and reaching out to help them solve their problems will strengthen the bond between the network provider and its subscribers.

Thank you for your valuable insights, Mr. Son!