The new network, the seventh in the country, uses the mobile phone infrastructure of the State-owned Vietnam Posts and Telecommunications Group (VNPT), which boasts among the best coverage and quality in the country.
Speaking at the launching ceremony, VNPT Deputy General Director Huynh Quang Liem said the cooperation between Mobicast JSC and VNPT takes place in the context that the Mobile Virtual Network Operator (MVNO) is emerging strongly in Asia.
The deal is expected to help each side to take advantages of their own strengths in order to create the best values and optimise benefits for users, he added.
Vietnam is one of the youngest MVNO markets in the world, with its first virtual operator – the Indochina Telecom Company (Itelecom) – launched in April this year.
A virtual network operator does not own network infrastructure but rather purchases telecommunications services from traditional mobile network operators (MNO) and resells network services after repackaging at lower prices.
The pioneering Itelecom has entered into an agreement with Vinaphone, a mobile subsidiary of VNPT, which gives it access to the company’s network services and allows it to offer its own. The prefix of its mobile service is 087.
In its initial phase, Itelecom is being introduced to workers at industrial zones in nine cities and provinces of Hanoi, Ho Chi Minh City, Thai Nguyen, Vinh Phuc, Bac Giang, Bac Ninh, Binh Duong, Long An, and Dong Nai.