Vietnamese operators to merge
20 March 2012 | Kavit Majithia
Two of the largest Vietnamese operators by mobile subscriber share, Vinaphone and MobiFone, are set to merge as part of a restructuring process.
The state-owned companies, both operating under the Vietnamese Post and Telecommunications group (VNPT), control over half of the country’s domestic phone market. But state rules permit them from publishing business results or official market share figures.
According the Reuters, deputy general director of VNPT, Lam Hoang Vinh revealed the merger to local press, but the move still requires approval from prime minister Nyguyen Tan Dung.
According to an official close to the companies, the merger of networks was group-wide policy. Many state-run companies have begun restructuring in Vietnam to consolidate strength, and find new business expansion initiatives.
Very little is revealed about the Vietnamese telecoms market, but government statistics show there were 134.2 million mobile users by the end of February, up 3.6% from a year earlier.
Net revenue across the sector has also increased by 21.4%, from a year earlier, to $1.06 billion.