Government agrees to transfer failing telecom to Viettel

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Báo Dân Trí English - 34 month(s) ago 14 readings

<div class='name_article'>Government agrees to transfer failing telecom to Viettel</div>

The Government has decided to transfer failing EVN Telecom to the military-run Viettel telecommunications group from January 1, 2012. The Government has decided to transfer EVN Telecom to the military-run Viettel telecommunications group from January 1, 2012.

The Government has decided to transfer failing EVN Telecom to the military-run Viettel telecommunications group from January 1, 2012.
The Government has decided to transfer EVN Telecom to the military-run Viettel telecommunications group from January 1, 2012.

All digital resources and frequencies devoted to EVN Telecom will be taken over by Viettel, according to a news source from the Ministry of Information and Communications.

The PM ordered all state-owned economic groups, including Electricity Group of Vietnam (EVN) to withdraw capital from non-core business interests, with the move intended to force EVN to concentrate on power production.

Hanoi Telecom and Viettel both wanted to buy EVN Telecom. After rumours that EVN Telecom could be bought out by Viettel, Hanoi Telecom sought the Government’s approval to acquire the entire 3G frequency band, infrastructure and optical cable system at the initial investment value as well as the firm’s remaining infrastructure required by the Government.

Hanoi Telecom claimed that the merger between Viettel and EVN Telecom would create a monopoly in the industry, since Viettel holds the largest market share in the sector.

EVN Telecom was the sixth largest mobile network in Vietnam. During its seven-year operation, it attracted only a small number of subscribers. EVN Telecom is currently in severe debt to Viettel and the Vietnam Post and Telecommunications Group (VNPT).

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