A degree of risk

As 3G services start to take hold, concern over information security is outweighing talk of cost.

In launching 3G services, Vietnamese mobile phone operators have officially distributed the iPhone mobile, a well-known high-end product from Apple. iPhone is competitive in price among mobile operators but is also targeted by hackers and viruses so operators need to pay attention and ensure service quality.

iPhone 3G and 3GS appeared in more than 20 cities and provinces throughout Vietnam in the final days of last month, provided by two major mobile operators: Viettel Telecom and Vinaphone. After the two operators announced their fee schedules, those who wish to own an iPhone are not so happy because the phone and the charges, with a one-or two-year committment are not much cheaper than an iPhone bought overseas and brought to Vietnam. Moreover, users must buy packages and mobile phones distributed by each operator. The two have declared that they will earn handsome profits from selling packages and services but very little from the iPhone itself. 

Vinaphone will provide three types of iPhone mobile phones: the 3G 8GB, the 3G 16GB and the 3G 32GB, costing VND10.87 million ($572), VND13.06 million ($687) and VND15.26 million ($803), respectively. Compared to prices of iPhones purchased overseas, the fees at Vinaphone are not that much different. Customers using an iPhone can choose one of three post-paid packages: iTouch1, iTouch2 and iTouch3, costing VND400,000 ($21.5), VND550,000 ($28.9) and VND650,000 ($34) per month, respectively, or one pre-paid package, called iSurf, for VND1.4 million ($73.6) per year. 

After Vinaphone announced its fees, Viettel, one of three largest telcos in Vietnam, did likewise. According to some analysts, the Viettel iPhone is cheaper than Vinaphone, by about VND100,000 ($5.2) to VND1 million ($52.6) and has more attractive services. The telco offers two choices for customers: the iPhone international version, which can be used by any telco and comes without any package commitments, and the lock version, which is only used by Viettel Telcom or accompanied by a package commitment. The telco also introduced four post-paid mobile phone packages and one uncommitted form. The four packages are iPhone1, iPhone2, iPhone3 and iPhone4, costing VND350,000 ($18.4), VND500,000 ($26.3), VND700,000 ($36.8) and VND1,2 million ($63) per month, respectively. 

iPhone is a luxurious product for those who can pay mobile phone fees of up to VND400,000 ($21.5) per month. Some, though, consider that although the telcos’ prices are cheaper by 5 - 10 per cent than announced prices, the one- to two-year commitment makes people hesitate. This is why many agree to buy the iPhone portable phone, without a one-year warranty. 

MobiFone, the third largest telco, will start selling next month at prices expected to be two-thirds lower than Viettel, according to ictnews online.

According to telecommunications experts, the goal for Vinaphone, Viettel and MobiFone choosing to distribute iPhone in Vietnam is not only profit but also equipment. 3G has been launched in Vietnam but to become popular requires good 3G equipment. But 3G mobile phone types from well-known brands in Vietnam such as Nokia or Samsung have been nothing special. In using an outstanding brand name like iPhone, the large telcos don’t need to promote 3G so much to gain effective results.  

With 3G technology, internet speeds on mobile phones will be up to 7.2 Mbps, so it will easy for the phones to be vulnerable to viruses or hacking, according to Mr Nguyen Tuan Huy, Head of the Informatics Department at VMS MobiFone. Research shows that more than 190 types of viruses can completely wipe data on mobile devices or disturb mobile phone operation. 

Mr Pham Dinh Truong from Viettel said that smartphones like iPhone run popular operating systems such as Windows, Symbian and Android and so easily become exposed to security risks just like a computer. “In the technological field, the risk of virus infection and harmful software on mobile phone devices and computers is the same,” he said.

Agreeing with Mr Huy and Mr Truong, Mr Vu Ngoc Son, Director of the Research and Development Division at Bkis said that the risk to mobile phone devices is more threatening than computers because they contain a lot of private information about the user. The mobile phone is both a diary and a pocketbook so any loss of information could be immeasurable, he explained. 

“iPhones will be a new target for high-end criminals in Vietnam”, Mr Nguyen Viet The, Head of the Professional Technology Informatics Department at the Ministry of Police told the Security World 2010 Conference held last month. Apple has not offered any effective solutions in terms of information security for iPhone and some trials showed that hackers could easily penetrate the phone. 

3G network security will be one of the decisive factors in the competition among telcos this year. According to a MobiFone representative, they will provide antivirus software for customers. Viettel Telecom, meanwhile, plans to offer antivirus protection for their mobile phone devices. In late 2009 the telco cooperated with CMC Information Security Company to obtain mobile phones supported with secure software. Vinaphone launched a call centre for customers using their data services in early 2010.