VietNamNet Bridge – 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.

 

FPT’s 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 market.

 

According 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.

 

According 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 networks.

 

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”.

 

Recently, 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 said.

 

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