Messaging apps are cutting into telco profits across Asia. They allow users to forgo SMS fees and chat and call for free over mobile internet. In Indonesia, telcos want to gang up on messaging apps like Line, WeChat, and KakaoTalk. In China, telcos are equally fearful of services that piggyback on their data packages. So in Vietnam, Line wants to pre-empt the telco attack by getting into bed with them and has confirmed that a number of talks are in progress.
Recently, Line has been flooding Vietnam’s social media and TV ads with marketing for its messaging app. This has contributed to a huge surge in users outside of Japan, hitting one million just last month in Vietnam alone.
Nguyen Phong Loc, a representative from NHN Vietnam, said that they are currently in talks with Vietnamese telcos like Viettel, VinaPhone, and MobiPhone to turn Line into an add-on service for their usual 3G services. It is not clear yet what the nature of the deals will be; it could possibly be like BlackBerry’s packages for unlimited BBM messaging within a 2G/3G data deal.
The move would serve not only to warm telcos to Line so it’s not viewed as a threat, but also to give Line an even bigger advantage over its local and foreign rivals. If the deals go through, Line’s competitors could be in trouble.
(Source: ICTNews.vn, article in Vietnamese)
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