VietNamNet Bridge – It is well known to everybody that the Audio Visual Global JSC (AVG), a “big guy” with powerful financial capability, has joined to the broadcasting market. However, whether it will jump into the telecom market remains an unknown.
Marching towards the broadcasting market
Pham Nhat Vu, Chair of AVG, said that the company is developing the project on building the digital television broadcasting infrastructure, and that AVG will provide both digital terrestrial television (DTT) and DTH (Direct-to-home) television services. As such, AVG, a Vietnamese company, is the second investor which builds the satellite digital television broadcasting infrastructure in Vietnam. The first one is K+, a joint venture of VTV (Vietnam Television) and a foreign partner.
AVG has set up the Network Control Center (NCC), an important part of the project on building the system of TV broadcasting and providing television services. The move has also been as a strong and determined step towards the paid-TV market.
Ngo Thai Tri, Deputy General Director of AVG said that NCC will allow to monitor the operation and adjust the equipment of the system automatically. This is the first and the most modern system in Vietnam, which now only allows to ensure the service quality, but also to minimize the labor force, thus allowing to cut down expenses and reduce the service costs.
AVG is one of the three units which can build the broadcasting system nationwide. The broadcasting market has been witnessing a stiff competition, in which the one who can provide the services with high quality and reasonable prices would be able to attract clients. NCC is considered a compulsory factor to heighten the service quality.
… and the telecom market?
Also according to Ngo Thai Tri, in May 2011, AVG got the license from the Ministry of Information and Communication to establish network infrastructure. AVG has started the construction of broadcasting infrastructure in some big markets, while it plans to lease infrastructure items from other enterprises, including the Vietnam Post and Telecommunication VNPT, for providing services in far markets.
Tri has admitted that it is really a big challenge to build the infrastructure. VTV began broadcasting in 1974, but its services have covered 90 percent of households only.
AVG hopes its services can cover 50-60 percent of families in the next three or four years, while the growth rate would be lower in next period.
Tri also said that though AVG has got the licenses to provide some types of telecom services, it still needs more time to consider its moves to join the market.
Right after AVG got the license to establish the network infrastructure, and it has got waveband to carry out the broadcasting nationwide, experts have posed a question that if AVG would jump into the telecom market. A telecom expert has affirmed that with the allocated resources and the rapid changes of technologies, AVG would jump into the telecom market in the future.
Meanwhile, analysts believe that AVG needs to take cautious steps when joining the telecom market, the market with stiff competition and redoubtable rivals.
In fact, all the “big guys” in Vietnam wish to join the mobile service market, which is considered the hottest place of the telecom market.
In 2000s, the Electricity of Vietnam, Viettel and then SPT all joined the “games” of providing mobile services, while VTV missed the chance to join the games. After that, Hanoi Telecom and Gtel have also jumped on the bandwagon. FPT and Saigon Tel, described as “Vietnamese-styled capitalists”, have also been reportedly cherishing the hope to join the market.
Nearly all the businessmen, whose names have been written down in the list of the richest Vietnamese stock millionaires, have been marching towards the mobile service market.
AVG has been listed as one of the “big guys” in Vietnam. Pham Nhat Vu, Chair of AVG, is the younger brother of Pham Nhat Vuong, Chair of Vincom, and the richest Vietnamese person if calculating the value of stocks they are holding. The An Vien Group of the Pham family is now the biggest shareholder of AVG.