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World Markets Analysis
January 31, 2006
By Jing Li
From LexisNexis

The Vietnam government has recently permitted the country's cable TV providers to launch broadband services, the Thai News Service reports.

HanoiTV and Broadcast Service and Saigontourist Cable TV have received official permission to offer the broadband services, while the Vietnam Cable Television (VCTV) Technology Centre and the HCM City Television (HTV) are expected to receive formal approvals from the government. 

Significance: The Internet market in Vietnam is limited to fixed-line incumbent VNPT and other government-sanctioned ISPs, including Vietel and Saigonnet. There were 2.9 million Internet users in Vietnam in 2005, according to data from Vietnam Internet Network Information Center (VNNIC). The government has issued new Internet licences in the hope of boosting Internet usage. The entrance of TV service providers into the broadband market will enable customers to enjoy higher-speed broadband services through cable TV networks, and further encourage broadband adoption.