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Govt cracks down on telecom marketing war
Telecommunication companies in Laos have been engaging in fierce marketing competition in recent years, forcing the government to take action to end the battle to win the hearts and minds of customers.
Mobile phone service providers have been told to tone down marketing tactics.
Ministry of Post, Telecom and Communication Office Head Mr Phonexay Phommapanya confirmed yesterday that the ministry has ordered telecom companies operating in Laos to stop offering special promotions such as free call credit, sim cards and messaging services in a bid to attract more customers.
The move aims to enforce stricter regulation of the telecom market and ensure fair marketing campaigns are used, he said.
“We will keep a close eye on telecom companies and if they fail to follow the regulations they will be punished in accordance with the law,” he said.
He said that the ministry has the right to regulate service fees to protect the benefits of the people, government and investors.
He also said that government intervention in telecom service prices is not aimed at limiting the marketing capacity of telecom companies.
Mr Phonexay said that telecom companies in Laos had been engaging in fierce competition to attract customers in recent years, often offering free sim cards, SMS and call time to customers, which has caused negative impacts on their business performance.
He also said that the government is also affected by the poor performance of telecom companies because they make less revenue and therefore pay less tax to the government.
There are currently four t elecom companies operating in Laos - Lao Telecom, Enterprise Telecom Laos (ETL), Star Telecom and Vimpel, which recently purchased a majority shareholding in Tigo from Millicom International Cellular.
The companies have fought fiercely to attain a greater market share in the country of 6.5 million people, which has allowed more Lao people, particularly those in remote areas, to access telecom services at affordable prices.
The number of mobile phone users has increased remarkably in recent years due to strong competition in the telecom sector. At present, there about 5.4 million mobile phone subscribers in the country, accounting for about 83 percent of the total population. Mobile phone networks reach 6,712 villages throughout the country.
Thaicom, which holds a 49 percent share of Lao Telecom, has announced it is considering getting out of the telecom sector in Laos and Cambodia due to major drops in revenue caused by strong competition in recent years.
vientiane times
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