Retaining the current resources to regulate
the infrastructure is the reason VNPT has cited when suggesting merging the two
mobile networks MobiFone and VinaPhone. However, experts have said, this would
not be the optimal solution for the telecom market.
The
fates of MobiFone and VinaPhone, the current two biggest mobile networks in
Vietnam, have once again become a hot topic after the Vietnam Post and
Telecommunication Group (VNPT), the owner of the two brands, has suggested
merging MobiFone and VinaPhone.
The
draft plan on renovating the structure and operation of VNPT has been submitted
by the group to the Ministry of Information and Communication (MIC). Under the
plan, VNPT would carry out a “major surgery” inside the group by merging and
turning its member units into companies to form up key businesses.
One of
the most important suggestions by VNPT is reorganizing VinaPhone and MobiFone
into VNPT Mobile Corporation. VNPT Mobile would become an independent company
belonging to the economic group, which would develop mobile services with two
brands MobiFone and VinaPhone.
According
to VNPT, in the last five years, the main source of income of the group comes
from mobile services. The merger of the two mobile networks would help the
subsidiaries of VNPT better share the same telecommunication infrastructure
system, which would allow cutting down investment costs.
VNPT
has also affirmed that the new model, if approved, would allow the cooperation
between VNPT Mobile and its subsidiaries, VNPT Mobile and local VNPT branches
to be implemented more smoothly.
VNPT
has stated that if the suggested plan is approved by the government, VNPT would
kick off the restructuring process right in the third quarter of 2012. It is
expected that by 2016-2020, VNPT would turn VNPT Mobile into a company operating
under the mode of one-member limited company, in which the holding company
holds 100 percent of capital and operates in accordance with the Enterprise
Law.
VNPT
has also proposed the government not to equitize MobiFone as previous planned
in 2005, reasoning that the state ownership would facilitate the operation of
the mobile network and help create sufficient necessary resources to ensure the
success of the group’s renovation process.
However,
the plan suggested by VNPT has not been welcomed by the public. Analysts have
commented that the plan would bring benefits to VNPT rather than to the market.
Once
the merger of MobiFone and VinaPhone is completed, there would be only two big
mobile networks existing on the market, which hold 94.54 percent of the market
share.
The two
include VNPT Mobile with 57.82 percent of the market share, and Viettel 36.72
percent. If so, other smaller networks including Vietnamobile, S-Fone and
Beeline with 5.46 percent of the market share would really meet big
difficulties in the struggle for survival, especially when the market gets
saturated in terms of the number of subscriptions.
Lawyer
Tran Vu Hai has pointed out that if there are only two mobile networks on the
market which hold 90 percent of the market share, it is likely that big
networks would stifle smaller ones, thus affecting the interests of consumers.
Dau tu
has quoted Michael Sascha Cluzel, GTel Mobile’s General Director, the owner of
Beeline network, said that the merging of big telecom networks would create big
challenges in policies the legal framework, and that MIC, as the watchdog
agency, needs to apply necessary measures to ensure fair competition for small
networks.
Especially,
if Vietnam decides not to equitize MobiFone, this would discourage a lot of
foreign investors, who have been waiting for years to jump into the Vietnamese
telecom market.
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