Local television stations have denounced big players for playing tricks to quell smaller companies.

Viettel, the military telco which has jumped into the pay-TV market, is the most unwanted rival to any pay-TV service providers.

Ha Van Dung, director of Nghe An Cable Television, said Viettel was competing with rivals with a special pricing policy.

The ad leaflets delivered by Viettel in Vinh City of Nghe An province show Viettel’s 3-in-1 service package, which includes both internet and pay-TV service, while pay-TV service fee is not mentioned. In some areas, Viettel provides services free of charge.

“Viettel is competing with rivals with its internet platform, not pay-TV service,” Dung noted.

He said that Viettel which has great advantage in internet services, can earn revenue big enough to offset losses in pay-TV service. Therefore, it can follow a low-fee policy to compete with its rivals.

“I strongly recommend Vietnam Pay-TV Association (VNPayTV) to ask Viettel to stop competition like this, or local televisions like us will die in five years,” Dung said.

Agreeing with Dung, a representative from Thai Binh Cable TV said the “big fish is swallowing the small fish” in the cable TV market.

“Televisions in different localities set different service fees with a big gap of up to 50 percent,” he said.

In Quang Ninh City, for example, subscribers have to pay VND66,000 in monthly subscription fees, while in Cam Pha City, where the competition is less stiff, the fee is VND88,000.

HCM City-SCTV, in northern markets, charges VND100,000 a month in large cities, but collects VND30,000 only in rural areas. This has forced local television stations to lower their service fee as well.

“The price competition has exhausted small television stations,” he said, adding that state management agencies need to intervene into the market to ensure healthy competition for all rivals.

According to Le Van Minh, director of Hai Duong Cable Company, SCTV, Viettel and FPT all have been conducting “obstructive competition behaviors” in the province.

Hai Duong Cable Company collects VND55,000 a month from subscribers, while SCTV charges VND33,000 a month only to attract customers.

Meanwhile, Viettel only charges customers for internet services, while it gives digital and analog TV service for free.

Do An Thang from Hai Phong City Cable Television said the television has sent dispatches to the Ministry of Information and Communication (MIC) and the Ministry of Industry and Trade’s Competition Administration Department, criticising Viettel for carrying out unhealthy competition.

“Viettel now provides analog cable TV service, but it does not have the license to provide this kind of service,” he said.

Source: Vietnamnet