I. BACKGROUND AND ISSUES 1.1 Background
In the past, Vietnam's telecommunications market was closed, protected and regulated by Vietnam's government. As a result, Vietnam Post and Telecommunication Corporation (thereinafter called the VNPT) which is a state-owned corporation had controlled the whole market during 1990s. Taking advantage of monopoly position, VNPT as the only-one market player at that time has built a very good brand image. It also acquired a huge capital from profit and as well gained very strong resource capability. Since Vietnam issued market-opening policy in 2002, the telecommunications market in Vietnam has become more open and competitive.
In addition, Vietnam joined in World Trade Organization in the end of 2006. Under the WTO commitment, it has to fully open the Telecommunications market in 2012. Vietnam is obliged to enact a law on telecommunications that follow international practices and integration. It is considered as a step further with implementing the commitment. In this law, Vietnam will also allow foreign owned businesses to buy, transfer telecoms license and provide telecom services. In other words, this telecommunications law allows all businesses freely enter the telecoms market.
So far has existed in the Vietnam telecom market many leading international telecoms companies, such as SK Telecom, Motorola, Ericsson, Nokia Siemens, Hutchison, Vimpelcom, AT&T and Cisco. The market is getting hot with the participation of big players in the world.
The privatization of some state-owned company also offers a chance for foreign firms to create their early spot in this market.
Along with the movement of market, 3G infrastructure implementation was started in Vietnam at Q4 2009 by three network operators. Two of them are VNPT‘s key subsidiaries, which are Vinaphone and Mobifone. Vietnam Ministry of Information and Communications (thereinafter called the MIC) has strategically decided the technology 3G standard following European WCDMA standard. However, the cost of buying a license and investing infrastructure are about
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carried out by network operators who won the 3G bidding competition. This huge cost of the license put a burden on network operators such as Vinaphone and Mobilefone.
Coming with new advanced network of 3G mobile, the mobile commerce becomes more visible.
It opens both opportunity and challenges for these network operators who are volunteers in this market.
1.2 Issues, motivation and research methodology
When Vietnam fully opens its telecom market, progressive competition is inevitable. Such a situation presents several questions for VNPT to answer quickly and thoroughly since the market gradually opens up to foreign companies such as:
◦ How can VNPT still be a market player in a more intensively competitive mobile commerce market with emerging 3G technology?
◦ Can it follow any lesson from other companies in other countries as example of DoCoMo with i-Mode?
◦ What is the chance for VNPT to build platform or ecosystem for mobile
commerce around its key competence of network operator such as Vinaphone &
Mobifone companies?
The purpose of this thesis is
◦ Firstly to study one successful i-mode case in Japan as benchmark for VNPT
◦ Secondly to address issues favoring and challenging to VNPT in Vietnam new opening market
◦ Thirdly to evaluate the advantage and limitation of VNPT with such scenario
◦ Finally to break down each factor to build up the VNPT‘s ecosystem from its resource regarding to the benchmark
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Research methodology:
◦ Conduct investigation the most successful case for developing ecosystem model in Japan (DoCoMo with i-Mode)
◦ Study current situation of VNPT in Vietnam mobile market
◦ Then benchmark VNPT with that ideal case
◦ According to Harvard writing center[1], the thesis will do the benchmarking as a comparative analysis. The process is as followed
◦ Choose frame of reference - It will be: Service and Revenue model in which this research places two companies to compare and contract.
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◦ Explain grounds for comparison – this thesis will show rationale behind the choice and make argument on difference or similarity between two companies
◦ Follow one organizational scheme: text-by-text, discuss all of DoCoMo with i-Mode, then all of VNPT.
◦ Link VNPT and DoCoMo to build a proposal for VNPT ecosystem like DoCoMo I-mode
Frame of Reference factors
◦ The research will go through all analysis part which was discussed in i-mode case, then places the two things DoCoMo with i-mode and VNPT with future ―i-mode like‖ with an intention to compare and contrast; it is the umbrella under which this research groups them. The frame of reference consists of a group of similar or different things from which investigation extracts for special attention: historical information, capability and technology are alike however economic, social condition in Vietnam and Japan are different. They will lead to two different models of service provided and revenue.
Grounds for Comparison
◦ The ground for comparison is that both VNPT and DoCoMo developed from a government-owned and existed long time in monopoly status. When facing more intensive competition from existing companies and new entrance they need to evolve to adapt with a new situation to stay at top. When comparing services using different technology, the research does not compare the separate technologies that are elements of each; it looks at the service as a final value bringing to users and evaluates. In other words, services will be analyzed in the specific conditions regarding to economic, social and future demand. Hence this research will show how to build them to put together in one proposal for VNPT.
◦ Each characteristic of DoCoMo with i-mode this research will compare and contract with that of VNPT. This research will organize them in ―text by text‖ scheme first discuss DoCoMo with i-mode above then VNPT to help realize the similarity and difference between them in order to construct an appropriate model for VNPT in terms of service
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and revenue. Following this scheme will help a reader be able to see how logical and systematical in the research argument.
The expecting result of the thesis is to come up with
◦ Critical factors in setting up mobile commerce ecosystem in term of service and Revenue model
◦ Proposal of ecosystem for mobile commerce for VNPT in term of services and revenue model
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