Hanoi Telecom Corp, which co-runs mobile network Vietnamobile with Hutchison Telecom International, has submitted a proposal to Deputy Prime Minister Vu Van Ninh to purchase the 3G broadband and network infrastructure from cash-trapped EVN Telecom.
The proposal says the company is ready to buy EVN Telecom with cash. It adds EVN Telecom’s 3G band and infrastructure system should be exploited effectively in such M&A.
Hanoi Telecom says if it is allowed, its price to buy will be the amount EVN has invested.
The proposal was dated October 21, 2011.
The Ministry of Information and Communications had earlier said it was of the view that it was time to merge cash-trapped EVN Telecom with another State-run telephone network operator.
EVN Telecom, a unit of State utility Vietnam Electricity Group (EVN), has reported significant losses and debts due to connection fees and frequency charges.
The domestic telecommunications market is currently dominated by MobiFone, VinaPhone and Viettel – all Vietnamese. Other networks like Vietnamobile and Beeline hold a small market share.
Hanoi Telecom says in its proposal that Vietnamobile, a cooperation partnership between the local company and Hutchison Telecom International, has invested US$880 million in business and has plans to increase the investment to US$1.1 next year.
