Two tech bodies walk as one

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The US tech giant IBM and VMS MobiFone, one of Vietnam’s largest mobile communications providers, inked a strategic cooperative deal late last week, agreeing to build an advanced, end-to-end mobile computing platform.

The agreement that includes IBM MobileFirst, IBM SmartCloud and IBM PureSystems offerings will allow VMS MobiFone to expand into new markets, while enhancing its enterprise application development capabilities and improving workforce productivity.

IBM Vietnam’s mobile solutions head Ngo Thanh Hien said through providing diverse interactive channels to customers IBM MobileFirst helps increase mutual understanding between firms and customers, from there enhancing customer confidence while helping businesses source new customers more easily and bettering service quality.

IBM MobileFirst offers an array of solutions that helps businesses connect, secure, manage and develop mobile networks, infrastructures and applications.

Earlier, telecom operators VinaPhone, MobiFone and Viettel had increased 3G usage costs since their revenues were hurt by Internet-based charge free services.

Do Vu Anh, head of VNPT’s Telecom Department, said popular Internet-based over-the-top (OTT) services like Viber, WhatApp, Line, Kakao Talk and Zalo had eaten into revenues of mobile network operators both in Vietnam and in the world.

“Viettel would lose 40-50 per cent of revenue if its all handset subscribers used 3G and Viber,” according to a Viettel source which also said that main services which produce around 80 per cent of Viettel’s revenue would now be found free of charge in the Internet, undermining the group’s core revenue.

In the first six months of 2012, subscribers’ using Viber alone had eaten VND1.5 trillion ($71 million) revenue of Viettel, the source noted.

Viettel deputy director Nguyen Manh Hung said: “Traditional telecom companies may disappear in the face of technology’s robust development pace. Telecoms altered post development landscape and information technology (IT) would do the same with handsets.”

Aware of the threat long ago, Viettel has paid due heed to IT, hardware and software development for many years now.

Industry insiders assumed telecom firms needed strong shake-ups if they want to survive and the best way to move forwards would be joining hands with IT companies.