Laos is a neighbor of China and the only landlocked country in Southeast Asia. It has 49 ethnic groups, and most of its people are Buddhists. The country covers an area of 236,800 square kilometers and is colloquially known as the “roof of Indochina.” Eighty percent of its terrain is forest-covered mountains and plateaus. Unitel is the largest operator in Laos and is jointly owned by the Laos Ministry of Defense and V-Telglobal of Vietnam. The company has annual sales of $180 million and a procurement quota of $20–30 million. Unitel and ZTE have established a long-term strategic partnership. Recently, ZTE Technologies interviewed Ulaha Thongvantha, chairman of Unitel. He talked about the opportunities open to Unitel, challenges to be overcome, and future development strategy.
Q: Could you briefly introduce Unitel and its areas of operation?
A: Unitel is one of the main operators in Laos. We are a multinational joint-stock company. The Laotian side owns 51% and the Vietnamese side owns 49% of the shares. We are supported by both the Party and government of Laos.
Q: What challenges and opportunities does Unitel have in Laos?
A: Laos has a population of only 6 million people, and the market is relatively small. At present, many foreign enterprises and individuals are investing in Laos. Unitel is now facing competition in terms of technology and market share. We have to constantly update our technologies and expand our market share. We need to provide quality services at lower prices, and this also needs to be supported by ZTE.
We are also supported by the Party and government of Laos, especially the Ministry of Defense. This has enhanced our reputation greatly. We treasure these opportunities and hope that Unitel can reach new heights under the leadership of our management team.
Q: What are the biggest benefits that Unitel brings to Laos?
A: We let the Lao people enjoy advanced communications technologies and devices. We have made a great contribution to the national GDP compared to the power and construction sectors. We have also made significant contributions to national defense, social security, and education. We have set up an online education system that cost $1 million and is used by 951 schools in the country.
Q: What is Unitel’s development strategy?
A: The urban-rural divide is significant in Laos. The city has higher standard of living and telecom devices are much more popular there, moreso than in underdeveloped rural and ethnic minority areas. Our first main strategy is to deliver advanced communication technologies to different groups all over the country.
Now our main business focus is our 3G network. Although the 3G network is slow and not the best quality, we will try our best to improve it. We know that talent is fundamental to the development of all industries. We are going to throw a lot of manpower and materials at developing highly qualified and efficient staff members.
Q: How has ZTE contributed to Unitel’s growth?
A: Unitel and ZTE have developed all-round exchanges. We have cooperated with ZTE since we were the sole shareholder of Unitel, and our cooperation has been smooth. ZTE is a large international company and has completed some very important projects for the Laotian government. We’ve learned a lot from years of cooperation with ZTE. We still remember when ZTE helped train our staff, and effects of this training have been significant and long-lasting. Our progress is due in no small measure to the help and support we have received from ZTE. I hope that Unitel and ZTE will grow together for a better future.
Q: What are Unitel’s goals and how will you achieve them?
A: Our overall goal is to deliver better, cheaper services so that Unitel will become stronger in the telecom market. To achieve this goal, we need to uphold some principles. First, Unitel is a joint venture whose employees come from two countries. The key to managing the enterprise well is to ensure the cohesiveness and focus of all staff. Second, as foreigners, we must follow the local laws and rules of the telecom industry in Laos. Third, we aim to deliver better, cheaper services than what other operators can offer. We are now making every effort to improve our 3G network. We are also applying for a 4G license and have planned a 4G trial. We hope we can expand the market and attract new customers while retaining our existing customers. Finally, to get things done in Laos, we must understand the national character of Lao. Our explorations into the local culture as well as the training we conduct for staff are also the foundation of our achievements in this country.