Telecommunication

Topics: Monopoly, Perfect competition, Mobile Web Pages: 3 (740 words) Published: March 13, 2013
INTRODUCTION
Telecommunications has become one of the fastest growing business sectors in modern information technology. The competition between the mobile suppliers is more severe as the telecom market has recently been closed to saturation in mobile subscribers. Therefore, suppliers try to attract customers by focusing on value-added services. This report indicates the battle of intensifying 3G services between the three strongest mobile providers Vinaphone, Viettel and MobiFone, which is based on a case study and several latest findings of the market research company Nielsen Vietnam. BODY

Key concepts
Competition is a battle among businesses or trade fields aiming to gain acceptance and creditworthiness from customers which forces producers and consumers to innovate,uses resources efficiently to satisfy the customers’ demands. Basing on the quality,competition is divided into two common types: perfect competition and monopolistic competition. Each type has different features,pros and cons. In this report,we will mention the monopolistic competition which means several or many sellers produce similar products that are slightly different,but customers suppose they are totally different. These differences are created basing on the product-differentiated strategy of each seller.

Case Study
Owning large market share,MobiFone,Vinaphone and Viettel compete aggressively to become the market leader. However,competition in mobile charge reduction,various promotions and the number of subscribers is no longer efficient as the market has seemingly reached saturation. Therefore,improving value-added services has been a prevailing trend of competition,especially in the 3G market. Dramatic reductions in 3G charges

MobiFone is considered the provider who triggered the race. In October 2011, MobiFone launched the unlimited Mobile Internet package. Users have to pay only 60000 dong a month at maximum, just equal to a half of the GPRS with slower speed. Afterwards...
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