FPT still cherishing the plan to jump into telecom sector

Published: 17/05/2011 05:00



Though FPT, the
Corporation for Financing and Promoting Technology, has decided to give up the
deal of purchasing EVN Telecom’s stakes, it still cherishes the hope of jumping
into the telecom sector.

President Truong Gia Binh

President, Truong Gia Binh has affirmed that FPT is still planning to become an
investor in the telecom sector. However, it remains unclear how FPT will
fulfill the plan: will it set up a completely new network or purchase stakes of
a telecom company and developing an existing network?

Purchasing stakes? Not feasible

Of the
seven operational telecom companies which have network infrastructure,
including: MobiFone, VinaPhone, Viettel, Beeline, Vietnamobile, S-Fone and EVN
Telecom, S-Fone proves to be the “only door” FPT can enter in order to
negotiate for purchasing stakes, the move which can help FPT join the telecom

to Thoi bao Kinh te Vietnam,
due to many reasons, obtaining big volumes of stakes at Viettel, VinaPhone or
MobiFone, the largest mobile networks now in Vietnam, proves to be without reach
of FPT. Experts believe that this would also be without the reach of FPT, once
MobiFone will get equitized in the near future.

As for EVN
Telecom, FPT has decided to withdraw the plan to make investment in the
network. Meanwhile, Vietnamobile and Beeline both have foreign partners who
have injected huge sums of capital. Russian VimpelCom is now holding 49 percent
of stakes of Beeline, while Hong Kong’s Hutchison
Telecom has contributed 700 million dollars into Vietnamobile.

to the Hanoi Planning and Investment Department, the foreign partner in
Vietnamobile is seeking the permission to raise the investment capital by 350
million dollars to one billion dollars. Partners in networks are also
considering shifting to operate as joint stock banks instead of the business
operation contracts.

In fact,
the foreign partners in both Beeline and Vietnamobile are wishing to hold the
controlling stakes in the networks, but they still cannot do that due to the
limitations in the regulations. Therefore, there is no room for FPT in the

A rumour
has been spread out that FPT is planning to purchase stakes of S-Fone.
Meanwhile, Binh said on Thoi bao Kinh te Vietnam: “We are considering this.
But the important thing is that if they (S-Fone) want to sell stakes. We are
still awaiting opportunities”.

SPT, the owner of S-Fone has decided to sell 40 percent of stakes, and
SaigonTel has decided to purchase 30 percent of the stakes. As such, it is
nearly impossible for FPT to purchase a volume of stakes big enough to have the
right to manage and develop S-Fone in its way.

Targeting LTE technology

“FPT will
still invest in the telecom market, even though FPT can buy stakes of other
companies. If they do not sell stakes, we will develop a network ourselves,”
Binh said.

In fact, it
would be cheaper for FPT to set up a new network with its own infrastructure.
However, it would help FPT shorten the investment time if it purchases an
existing network.

However, in
case FPT develops an existing network, it will not be able to develop
traditional services, such as conversations and SMS, because there is not much
opportunity to do that.

“If we join
the market, we will march towards the broadband and multimedia sector,” Binh

The most
feasible solution for FPT now, is to make investment to develop the broadband
telecom market based on LTE (Long Term
Evolution) technology. However, Binh has declined to say about the time when
FPT will officially provide mobile telecom services.

Source: TBKTVN

Provide by Vietnam Travel

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