The government last week allowed CMC Telecom Infrastructure to establish telecom network and provide fixed and internet services, opening a new chapter for private companies to enter the telecom infrastructure sector.

Private firms are putting their best feet forward for a slice of the telco pie.

CMC Telecom Infrastructure, an arm of CMC Group, is the second private company after FPT Telecom to be allowed to provide fixed and internet telecom services in Vietnam along with other state-owned operators.

The permission will pave the way for the Ministry of Information and Communications (MIC) to grant a licence to CMC Telecom Infrastructure, which was formed by the State Capital Investment Corporation (SCIC) and CMC Telecom in September, last year.

Of which, SCIC holds 51 per cent in the company to meet government regulations on state stakes in a telecom companies for network development. Once MIC grants the licence, CMC Telecom Infrastructure will become the 12th internet service provider in Vietnam.

“It is early to say anything about the licence as we are waiting for MIC to give us the licence which will define which services and projects we are allowed to join in on,” said a CMC Telecom official. CMC wants to use state-of-the-art technology such as Wimax for internet broadband and mobile services through mobile virtual network operator, or a MVNO licence, once Vietnam opens that kind of service in the future.

“It is the first step for us to penetrate fixed telecom network development and Wimax and MVNO is beyond that,” said the CMC Telecom official.

MIC granted two licences for network installation and voice over internet protocol (VoIP) in 2008 including one for Indochina Telecom Company, which is also pursuing a MVNO licence.

Doan Quang Hoan, director of Radio Frequency Directorate, said there were no more frequencies for mobile operators and seven operators was enough. “I supposed the government and MIC will not grant licences to mobile operators, but instead restructure the market and mobile operators,” said Hoan.

The country has five internet exchange, 11 internet service and more than 20 open service providers.

CMC Telecom was established by private CMC Group in November, 2007, offering telecom services such as telecom infrastructure, data, customer care and internet entertainment services.

VietNamNet/VIR