Recently, Vietnamese cable television brands like Vietnam Cable Television and Hanoi Cable Television have become known not only for their captivating television programs but also for… surfing the Internet.
The Trend of Two-in-One!
By the end of 2005, Vietnamese television viewers had become familiar with several cable television brands. Northern customers recognized Hanoi Cable Television (HCTV) and Vietnam Cable Television (VCTV), while those in Ho Chi Minh City knew about Saigontourist Cable Television (SCTV). The strength of cable television lies in its diverse programs with engaging content, offering dozens of channels.
The competition in the cable television service market is becoming increasingly fierce… The challenge for service providers is to ensure that, apart from content, the quality of service is well-maintained, and what strategies will effectively attract customers to use cable television?
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Alongside ADSL, broadband Internet services over cable television are becoming a new choice that service providers are targeting. (Image: TN). |
With the trend of integrating more utilities into service networks, in 2005, both Vietnam Cable Television and Hanoi Cable Television, as well as Ho Chi Minh City, implemented plans to collaborate with telecommunications service providers to offer customers an equally convenient service: broadband Internet over their cable networks. They believe that this two-in-one integrated utility service will serve as a stimulus to increase consumer demand.
The Level of Competition is Still Modest
The launch of the first broadband Internet service over cable television was initiated by Hanoi Cable Television in collaboration with a new-generation telecommunications company; followed by MediaNet, a joint venture between SCTV and the Electricity Telecommunications Information Company (EVN Telecom) in Ho Chi Minh City. In mid-December 2005, the broadband Internet service, provided in partnership by EVN Telecom and the Vietnam Cable Television Technical Center (VCTV), was officially launched in Hanoi.
The emergence of broadband Internet service over cable television is causing high-speed ADSL Internet service providers to take notice as they now face additional competition. The general advantage of broadband Internet over cable television is its exceptionally high access speed, which is 5 to 10 times faster than current high-speed ADSL services. Moreover, the service promises no congestion issues, ensuring that broadband remains effective even when multiple users are online simultaneously. For instance, with the broadband Internet service provided by EVN Telecom and VCTV, users can download at a maximum rate of 56 Mbps and upload at a maximum speed of 30 Mbps—numbers that ADSL customers can only dream of.
However, telecommunications experts also believe that despite the competition, the broadband Internet service market over cable television cannot immediately become vibrant. While competition with other Internet services is inevitable, it will not occur at this moment and will only be at a certain level. The primary reason is that Internet services depend heavily on the growth of cable subscription numbers, which remain modest.
As of now, the Hanoi Cable Television network (HCTV) has reached 60,000 subscribers after more than three years of officially providing services. Even though HCTV is a pioneer in integrating Internet services over its cable network, only about 100 subscribers have registered for broadband Internet in addition to their cable television service. Although HCTV has implemented policies to attract users to increase subscriptions, these measures seem to lack appeal, primarily consisting of promotions and modem rentals.
HCTV also acknowledges that part of the slow subscriber growth is due to the need to upgrade the network to two-way to provide Internet services, which requires significant investment costs. As a result, the network has only expanded in a limited area and has not met the demands of customers in potential markets. Therefore, the target set for the first half of 2006 to develop 1,000 broadband Internet subscribers on the HCTV network still seems quite modest compared to the more than 200,000 ADSL subscriptions from the three service providers VNPT, FPT, and Viettel combined by the end of 2005.
Thuy Nguyen
