Introducing Neutral&VNO model to Vietnam



Neutral&VNO model is understood as the intermediary service providers cooperate with many original telecommunication service providers to offer the services to the customers. Thus, through the intermediary providers, the customers can access to all telecommunication services of the providers on the market at basic price.
Traditionally, when a customer wishes to use the Internet service of VNPT, they must contact directly this provider to sign the contract. However, if that customer has demand to use the data centre service of CMC Telecom, they will have to sign another contract with CMC Telecome….However, with Neutral&VNO service model, the customer will only need to sign one contract with the intermediary party to use many different telecommunication services provided by different providers. The advantage from this model is that all problems will be solved by one intermediary party instead of contacting many different providers.

Mr. Nguyen Long, General Secretary of Vietnam Association for Information Processing cum deputy chairman of Vietnam Internet Association said that in the Vietnamese market, there is a fierce competitiveness from original service providers, however the “door” is still opened to the enterprises which access new technology and services and participate the market actively. The construction of Neutral&VNO model is the new direction in Vietnamese market and this is the new road the telecommunication enterprises should pay attention to exploit.

Mr. Hoang Manh Cuong, CEO of CMC Telecom said that actually, in Neutral&VNO model, the intermediary enterprises purchase the services from the original service providers and develop their own services to offer to the market suitable solutions and service packages to each customer and market segmentation which is very difficult or cost-consuming to the original enterprises to develop. Neutral&VNO model is still strange to Telecommunication market of Vietnam but quite common to other sectors such as Health, construction, education…. where this model has been applied for many years. The telecommunication service providers following Neutral&VNO model are as the large-scale general agents of telecommunication services, the customers will only contact that general agent to purchase all services that they need.

While the original service providers play the role of the normal manufactures and through the Neutral&VNO model, they will reduce the costs for marketing, customers searching,…Currently telecommunication enterprises will focus much on developing basic telecommunication services. Thus. The telecommunication service providers following Neutral&VNO model will develop their own services basing on the infrastructure and basic telecommunication services of the telecommunication enterprises with infrastructure. Besides, the advantages of the Neutral&VNO telecommunication service providers are that thay will have the technical support services and ICT administration services during the operation or the after sales services.

Mr. Nguyen Kha Nhan, Information Technology Director of Bao Minh Joint stock Company said that after a period of using the telecommunication service provided following the Neutral&VNO model by CMC Telecom, they find out that this is the suitable model. We will need to work with only CMC Telecom when need any service from other providers at the basic cost. This will help the enterprise to reduce at the maximum the costs, personnel and time and create the synchronicity and the high effectiveness. Sharing the same opinion, Mr. Mai Tung Hiep, deputy director of Information Technology division of Petrovietnam Insurance Joint Stock Company said that in the world, the Neutral&VNO model has been popular for a long time but this model is still new in Vietnam. In the Vietnamese telecommunication market at the person, some new enterprises have the intention to access the Neutral&VNO model and in the next few years, the customers of telecommunication sector will be able to access the most competitive service packages. This is the model with many advantages for all partners of customers, original telecommunication service providers and Neutral&VNO exploiter…

* Posted on Vietnam Economy Newspaper, on Friday 20/5/2011