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Stronger competition to drive telecoms growth
The Lao telecom industry is anticipating exceptional growth this fiscal year as cell phone network operators step up competition.
The Ministry of Post and Telecommunication predicts that growth in the sector will result in the expansion of telecom networks nationwide, enabling people in remote areas to have cell phone connectivity.
The four telecom operators LTC, ETL, Star Telecom and VimpelCom Lao plan to install 300 new cell phone base stations this fiscal year, the ministry says, adding that network expansion will enable 77 percent of all villages to be connected into cell phone networks.
At present, there are 5,244 cell phone base stations around the country.
The ministry's projection also shows the number of cell phone and fixed line telephone network subscribers will reach 5.8 million people this fiscal year, up from 5.6 million last fiscal year, with the user rate to rise to 93 percent of the total population.
The ministry expects the number of internet users to reach 550,000 this fiscal year as telecom operators are now offering 3G and 4G services. It predicts the number of registered IP addresses will reach 26,300, up from 26,100 last year.
The increase in the number of internet users has been made possible through the more widespread installation of 3G and 4G networks, which enable cell phone users to access the internet and also create new sources of revenue for telecom operators.
The new networks are considered fashionable, as well as being an important communication tool. 3G and 4G subscribers can access information more quickly, which makes it easier to run a business or make investment decisions.
The four telcos have also announced they will earn more revenue this year after entering into an agreement to keep the mobile phone call rate at 800 kip per minute, except during special occasions. The higher revenue will enable operators to boost their investment in network expansion.
The decision to set a minimum call rate at the end of last year was taken to prevent the collapse of telecom operators due to spiralling competition.
ETL, a major cell phone service provider, is expected to list on the Lao stock market this year, and expects the growth of the telecom sector to encourage people to buy shares in the company.
vientiane times
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