They don’t realize that if they get more people signed up for 3G and making SMS transactions that they will significantly grow their revenue pot in the long run. One, they’re too focused on texting and calling rather than 3G growth and, two, they’re skimming way too much off the top of SMS transactions (sometimes up to 40 percent), thus stifling many potential business models.
There are two key points that telcos are currently missing. They’re cutting off a potential gold mine that many yougn mobile startups want to get in on. What they don’t realize is that getting people on 3G could bring in greater revenues from other online services in future, such as virtual items, SMS banking, and mobile commerce. The problem is that the telcos only see that they’re losing money on texting and calling. Chat apps like homemade Zalo and global success Viber get people on 3G, something that telcos will likely be happy to see. On the other hand, this protectionist way of doing things – which is reminiscent of China’s controls and regulations on its own internet – may betray a misunderstanding of the potential that OTT services bring to consumers. Vietnamese telcos don’t understand business? But if the ban and the decree both go down, it’s no doubt that the world will wonder how open Vietnam truly is. Some have tied up Vietnam’s social media censorship to roots in a copyright battle between traditional newspapers and online media, but this latest possible ban is clearly protectionist in nature. With this proposed ban, along with the online news decree from earlier this month, many in the international community are going to call into question Vietnam’s censorship laws. This raises concerns about censorship in Vietnam
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