Brian Jeffrey
End of 2G Services and Shift to 4G Phones
Starting September 16, mobile operators will discontinue support for 2G-only phones, prompting users to upgrade to 4G devices to continue their communications. As the deadline approaches, many are hurrying to purchase new 4G phones.
Market analysts highlight that alongside affordable smartphones, there is a rising preference for 4G feature phones, commonly referred to as ‘brick phones’ due to their size and weight. This high demand has recently led to a shortage in availability.
Tran Duc Tin from The Gioi Di Dong (Mobile World), one of Vietnam’s largest mobile retailers, notes that as the end of 2G nears, the demand for push-button phones is surging, occasionally leaving their stock depleted.
In August, The Gioi Di Dong sold 500,000 units of 4G push-button phones and anticipates sales between 350,000 and 500,000 units this month.
Huy Nguyen from CellphoneS reports a significant increase in the sales of 4G feature phones, with the demand in August being five times higher than before. Their current inventory is only sufficient for one more week of sales.
He explains that the sharp rise in demand has led to shortages at manufacturers and distributors, but they expect to restock with more 4G push-button phones by early September and October.
At CellphoneS, customers purchasing smartphones from brands like Samsung, Oppo, and Xiaomi can benefit from subsidies ranging from VND100,000 to 500,000.
Nguyen The Kha from FPT Shop confirms that there has been a drastic uptick in the sales of 4G push-button phones in recent weeks, with sales in August soaring sevenfold compared to July.
In addition to feature phones, sales of low-cost 4G smartphones (approximately VND2 million) have risen by 30-50%. Although the growth in this category is slower than for push-button models, it shows promising potential for the future.
Plans for 4G Phone Distribution
Concerns over potential shortages of 4G phones have eased as distributors, retailers, and telecom companies assert that they have ample stock to meet consumer demands.
Beginning September 1, Viettel Telecom has been providing free 4G push-button phones to customers on 2G plans who are financially unable to upgrade.
This initiative extends to 1,700 economically challenged communes, where recipients are typically from low-income households validated by local authorities. The aim is to ensure no disruption in communication services when 2G support ends on September 16.
To receive a free 4G phone, individuals must visit a nearby Viettel facility with identification and documentation verifying their low-income status.
Viettel reports that since the start of the year, it has facilitated the replacement of 8 million phones nationwide, including over 3 million 2G devices in August alone.
In addition to over 10,000 designated locations for phone swaps in high-density areas, Viettel has partnered with retailers like The Gioi Di Dong and Dien May Xanh for smooth transitions from 2G to 4G.
Thanks to these initiatives, Viettel has reduced its base of 2G-only subscribers from 10 million to less than 2% of its overall subscriber count, pledging uninterrupted service for all customers.
Nguyen Viet Hoang, CEO of HMD Global in Indochina, mentioned that in response to the demand for 2G replacements, HMD will deliver 1 million Nokia 4G feature phones to Vietnam. However, there may be delays, with some phones arriving after the September 16 cutoff, specifically between September 18-28.
According to Tran Duc Tin, the market is poised to be well-stocked with both Viettel’s and HMD’s supplies, ensuring that there will be sufficient 4G phones available as the transition from 2G takes place.
“Although some products might be delayed, we won’t face a shortage of 4G devices,” Tin reassures.
