VietNamNet Bridge – The CDMA mobile network S-Fone will be officially operated by Saigon Postel in mid-2010 after SK Telecom withdraws.

South Korean partner may split from S-Fone

Saigon Postel still holds S-Fone’s major shares

Time for small mobile networks to “soul-search”

S-Fone managing director Ho Hong Son told the media in a press briefing on April 8 that the formalities to change the business cooperation contract (BCC) between Saigon Postel and Korean partner SK Telecom into a joint-venture were completed on March 20. The joint-venture will emerge this April.

Along with this change, Saigon Postel will manage the network while SK Telecom will play the role of shareholder in the JV.

Son explained that from now to 2011, Saigon Postel will return capital invested by SK Telecon in S-Fone and the Korean partner will only hold a certain amount of shares in the JV. Saigon Postel will hold the majority shares and will have the right to make decisions related to S-Fone’s operations.

At present, the BCC model is still in effect, but since last November, Saigon Postel has gradually taken control. Son remarked that the change of business model will “untie” S-Fone, especially in financial and business strategy.

Established in 2003, this network has nearly seven subscribers, which is very modest compared to GSM mobile networks like Viettel, VinaPhone and MobiFone. The hindrance for S-Fone’s development is the limited sources of supply of handsets.

Source: TBKTSG