The Vietnam Posts and Communications Group
(VNPT) has proposed that Government not privatise MobiFone, but merge it with
VinaPhone to set up a new firm called VNPT-Mobile.
Under
the restructuring plan that has been submitted to the Ministry of Information
and Communication (MIC) and the Government, VNPT said that, over the past five
years, MobiFone has contributed 40 per cent to its revenues and 60 per cent to
its profits. The group request to the Government was for gradual privatisation
to ensure stable operations.
For a
short term, VNPT wants to merge MobileFone with VinaPhone to establish Mobile
Information Corporation or VNPT-Mobile.
The
group proposed that restructuring would involve entire group as well as its
major subsidiaries after 2015.
Its
proposals, however, somewhat contradicts to the Government’s decree that guides
the implementation of the Telecommunication Law.
The
regulation stipulates that an individual and organisation that owns over 20 per
cent of registered capital or stakes in a telecom firm is not allowed to hold
over 20 per cent of registered capital or stakes in another telecom company in
the same market.
This
means that VNPT would not be allowed to entirely own both MobiFone and
VinaPhone.
Rerecently,
the ministry insisted that VNPT quickly privatise MobiFone and then VinaPhone.
In June
2011, company drew out three separate restructuring plans: the merger of
VinaPhone and MobiFone, to privatise one of the providers, or the privitasition
of VNPT itself.
The
merger plans drew the greatest concern from the public. Several economists
stated that it would not be in accordance with the Law on Competition.
Vu Ba
Phu, Director of the Competition Management Department said, regulation bans
the merger of enterprises that would result in over 50 per cent market share.
If this merger goes through, VNPT would hold around a 60 per cent market share
in the industry.
He said
that, for VNPT to get approval for the merger it would need to seek an
exception from this regulation. Currently, the regulation allows only two
exceptions, one would be in a case where one or several enterprises involved
are on the verge of bankruptcy and the other where such a merger would foster
exports or facilitate socioeconomic or scientific and technological
advancements for the country.
Under
the restructuring plan, VNPT also proposed a merger of several of its
subsidiaries, including Inter-provincial Telecommunications Company (VTN) with
Vietnam Telecom International (VTI), and Vietnam Data Communication Company
(VDC) with VASC Software & Communication Company.
The
White Book on Vietnam's ICT 2011 showed that Viettel held a 36.72 per cent
share in the country’s mobile market, MobiFone 29.11 per cent, VinaPhone 28.71
per cent while others shared the remaining 5 per cent.
Dtinews
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