Vietnam’s Ministry of Information and Communications has rejected a plan by government-owned telco VNPT to merge its two mobile subsidiaries, Vinaphone and MobiFone, according to local reports.
Minister Nguyen Bac Son was quoted as saying that…
Vietnam’s Ministry of Information and Communications has rejected a plan by government-owned telco VNPT to merge its two mobile subsidiaries, Vinaphone and MobiFone, according to local reports.
Minister Nguyen Bac Son was quoted as saying that according to the government’s plan, Vietnam must have at least three large telcos, namely Viettel, MobiFone and Vinaphone. Therefore, VNPT has been instructed to come up with another restructuring option.
Under a decree effective from 1 June 2011, a company that owns 20% or more of a telecom operator is not allowed to hold more than 20% of another operator in the same market.
Soon after, VNPT submitted a first merger proposal for MobiFone and VinaPhone, respectively number two and number three in Vietnam. It was later asked to resubmit a final plan.
If confirmed, the rejection of the merger proposal means that VNPT may have to sell one of its mobile operators.
VNPT and the Ministry of Information and Communications were not immediately available for comment.
Separately, it was announced yesterday (11 April) that Viettel, along with 11 other entities from around the world, have been shortlisted for the mobile licence auction process held by Myanmar.
These pre-qualified applicants have until 3 June to submit their applications. The winners of the two nationwide 15-year licences are expected to be announced by 27 June.
